Levy County budget workshop flags rising health costs, EMS and solid-waste shortfalls

Levy County Finance Administrator Jason Riviera told the Board of County Commissioners at a budget workshop that the county’s general fund is projected to remain positive over the next five years but is shouldering large subsidies for other funds, constraining the county’s ability to fund capital projects.

"The key point is that the general fund remains strong, but it's carrying a a pretty significant financial burden that's keeping it from being able to allocate funds towards projects," Riviera said, summarizing the forecast he presented.

Riviera said the general fund’s revenues are projected roughly in the range of $53 million to $60 million from 2027 through 2031, but that transfers to support law enforcement, EMS, fire and utilities limit available capacity for transportation and other infrastructure projects.

The finance administrator warned of several pressure points that will carry into FY27. He flagged a projected near-10% rise in health-insurance costs that would increase countywide employer contributions by about $314,863 if that estimate holds. He also said benefits were modeled at a 4% growth rate while most other revenues and expenditures use a 3% annual assumption.

Riviera outlined specific fund shortfalls. EMS and county fire are not fully self-supporting in the forecast; EMS expenditures rise materially with the addition of required staffing tied to a state direction to move to a 40-hour workweek. "EMS operations continue to require increasing general fund support unless special assessment rates are adjusted," he said.

On solid waste, Riviera said a prior accounting placement of a roughly $5 million landfill-cell expense into the wrong fund created a shortfall when corrected; the solid-waste fund will need additional general-fund support in FY27 unless the board approves a different financing approach (such as a short-term loan) or new revenue sources.

Riviera also reviewed the utilities fund, noting a one-time $300,000 grant to repipe University Oaks and recent rate increases (30% for University Oaks, 15% for Manatee) that still leave those subdivisions and the utilities fund substantially subsidized by the general fund. He said University Oaks has about 220 customers.

Board direction and options

Riviera asked the board how to model the FY27 budget. He recommended keeping conservative assumptions for long-term forecasting, including not increasing special assessments in the baseline model so the board could see the effect of fixed rates. He presented millage-rate options and asked whether staff should build the budget assuming the current millage.

Commissioners directed staff to model the proposed budget at the current millage rate. Riviera also offered three compensation scenarios and demonstrated the fiscal impact of a 3% cost-of-living adjustment; Commissioner Charlie Kenny said, "I think 3 percent's a happy medium to start off with," and the board asked staff to include a 3% COLA option in upcoming budget materials.

Riviera said staff will continue work on special-assessment rate studies (noting the last fire-assessment study showed the $250 residential rate funded about 66.75% of services and the EMS $200 rate funded about 59%), and that the county is preparing to engage consultants to update those assessments to reflect the added battalion and other recent changes.

Next steps

Riviera said staff will incorporate the board's feedback, finalize departmental requests and develop the FY27 proposed budget. He identified a tentative date for the next budget workshop on June 2.

Procedural actions

The board approved the meeting agenda by motion early in the session; the motion passed with no recorded opposition. No formal budget votes were taken at the workshop.

A note on names in the record

At the start of the meeting the chair asked Commissioner Rob Meese to lead the prayer and introduced other commissioners on the dais; Finance Administrator Jason Riviera conducted the presentation.

The workshop concluded with no public comments and an adjournment.