TAXPAYERS GUIDE TO THE HILLSBOROUGH COUNTY BUDGET

Transcription

1 TAXPAYERS GUIDE TO THE HILLSBOROUGH COUNTY BUDGET

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3 Taxpayer's Guide to the Hillsborough County Budget Introduction This document is intended to guide taxpayers and others to a basic understanding of the annual budget adopted by the Hillsborough County Board of County Commissioners. The Board's budget is a plan to pay for services to the residents and businesses located of Hillsborough County, Florida. There are three parts to this document: Part I - This section is an overview of structural issues related to the budget. These are useful issues to know to understand why the budget is so complicated. It also attempts to answer budget questions routinely asked of County staff. It outlines what services are provided by the Hillsborough County budget and what services are provided by other local goverrunents. Part II - This section examines the 1993 (FY 93) Adopted Budget for Hillsborough County, and how and why the operating budget changed over the five years leading up to FY 93. Charts help visualize what "drives" the budget. Part III '" This section outlines the process used tci adopt the County's Fiscal Year 1994 (FY 94) budget. It describes what documents are available to interested parties and how the budget documents are reviewed to ensure they provide adequate information for the various users of budget documents '

4 Hillsborough County Board of County Commissioners Ed Turanchik, Chairman Phyllis Busansky, Vice-Chairman Joe Chillura Sylvia Kimbell Lydia Miller Jim Norman Jan Platt 1.-.' Fred.erick B. Karl, County Administrator Edwin J. Hunzeker, Assistant County Administrator, Financial Services Eric R. Johnson, Budget Director Produced by the Hillsborough County Budget Department as an aid to understanding the Hillsborough County budget. For more information on the budget, please call the Budget Department at This document, including its cover, is printed on recycled paper in order to aid in preserving our natural resources. We ask that you "recycle" this document by sharing it with others. l_;_j Text and graphics were produced using Microsoft Word for Windows and Microsoft Excel in a Times New Roman 12 point font. Printed July 1993.

5 Table of Contents: Part I - An Introduction to CQunty Budgeting Required Structure and Process for the Budget..... I Why is the Budget Structured the Way it is?... I Fund Accounting... I Funds and Subfunds...,... 2 Transfers Line Item Detail... 2 What Services Does the County Provide?... 2 Countywide Services... 3 Municipal Services... 3 Library Services... 3 Other Services... 3 What Services Does the County Not Provide?... 4 Part II - What Drives the Current Budget? What is the FY 93 Budget?... 5 Can the Budget be Shown to Better Reflect the Budget for Day-to-day Operations?... 5 How Has the Budget Changed Over Time... 6 What Factors Account for the Increase in the County's Operating Budget?... 6 What are Some Examples ofincreased Workload?... :... 8 What is the Effect of These Factors? What Factors Have Controlled Growth in the Operating Budget? How Have Property Taxes Changed for County Taxpayers? How Have County Special Assessments and Utility Rates Changed? Part III - Looking Ahead to the FY 94 Budget How the Budget is Developed: A Review of the Process for FY Five-Year Outlook Establishing Budget Guidelines Budget Kickoff..., Budget Submission... : Budget Review Where Can Information Be Obtained on the FY 94 Budget? National Recognition for the County's Budget Documents... 15

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7 Part I -- An Introduction to County Budgeting Required Structure and Process for the Budget The Hillsborough County budget is produced in conformance with rules and regulations developed for local governments. While it does not take an accountant to understand a budget, it should be understood that a budget is developed in accordance with some uniform accounting concepts. Why is the Budget Structured the Way it is? There. are several reasons why the budget is structured in a form that may be confusing to anyone who is not an accountant. National Accounting Standards Just as businesses follow what is known as generally accepted accounting principles (abbreviated as "GAAP"), governments follow national standards for financial reporting by governments. Governments that use consistent standards can be compared over time to measure their financial strength or against other units of government to measure their comparative strength, much as the financial strength of a business can be compared over time or against other businesses. State of Florida Standards for Budgeting The State establishes a variety of financial requirements for local governments in Florida. One such requirement is the timing of the annual budget cycle: The "fiscal year" for counties begins October I and ends September 3 0 of the following calendar year. In addition, 'the State sets the process by which budgets are adopted and by which millage rates are set. A millage rate is the tax rate, measured in terms of a $1 tax per $1,000 of assessed taxable value, that is applied to all real property and to the tangible personal property held by businesses. Federal and State Grant Requirements Federal and State agencies require certain grant dollars be separated from other County revenues to ensure they are used to pay for specific programs. This segregation requires a more complex financial structure to manage these "restricted" dollars. Local Standards for Budgeting Finally, other standards for how the budget is structured are set by local ordinance. The Board of County Commissioners establishes uses for some fees collected by the County to ensure they are spent on specific programs. Fund Accounting As indicated earlier, there are restnctwns placed on how certain funds or revenues may be spent. Again,.. some are imposed by accounting standards, others by the State of Florida, and still others by the Board of County Commissioners. As a result, the County maintains a variety of "funds" and "subfunds." Some people think of them as "buckets" used to separate revenues held for different purposes.

8 Funds and Subfunds In all, there are over 30 major categories of the County budget that are known as "funds." These categories are further broken out into close to 350 discrete "subfunds" that account for each restricted pool of revenue. These subfunds are used, for example, to separate dollars used to pay off different types of County debt and to track fees collected to pay for certain County services. The wide variety of County services, which are discussed later, are a reason for the large number of sub funds. This structure of funds and subfunds might be compared to doing business with 30 financial institutions (banks) with 3 50 individual checking accounts. The County budget, adopted each year by the Board of County Commissioners, is actually the total of the separate subfunds or accounts -- each of which is separately monitored. When we talk about "balancing the budget" the process actually involves balancing each of these subfunds within the funds. Transfers Further complicating the process are numerous movements of dollars between the subfunds, known as "transfers." The movements of dollars provide tax dollars to programs that cannot be fully paid for with fees or grants that they take in. Line Item Detail At the most detailed level, there are approximately 30,000 individual line items budgeted and monitored Within the close to 3 50 subfunds. In addition to this detail, the Tax Collector, Property Appraiser, Clerk of the Circuit Court, and Sheriff manage their own budget and accounting systems. County funds are transferred to and from these accounting systems. What Services Does the County Provide? In Florida (unlike some other states), cttles and counties overlap. That means there are areas where the county provides certain services and a city provides other services. In other areas that are not part cif a city (the "unincorporated" area), the county is also the provider of services a city would normally provide. Florida law allows counties to charge one tax rate countywide for services that are provided to the entire county population and to charge other tax rates for services provided to only the unincorporated area for city-type services provided by the County. In Hillsborough County's case, not only are there separate millage (tax) levies to pay for countywide services and unincorporated area services, there is a separate levy to fund a special taxing district. The special taxing district is composed of the City of Tampa and the entire unincorporated area. Together, they pay for operation of a system of public libraries for residents of the library district. A countywide tax is also levied to pay for long-term bonds issued in 1977 to pay for a system of regional (countywide) parks and construction of jail improvements. Bonds that rely on property taxes to pay principal and interest costs are known as "general obligation" (G.O.) bonds, and can only be issued after voter approval. Voters approved an additional parks construction program in 1992 resulting in an additional tax beginning 2

9 in FY 94. That tax will be levied only in the unincorporated areas of the County since the bonds will pay. for parks developed only in the unincorporated areas. It is useful to summarize the major programs funded by each tax rate: Countywide Services The countywide tax pays for the criminal justice system of court and jail operations. It. pays for a diverse number of human services functions: children's services, aging services, animal services, social services, health and human services, employment and training, and operation of regional parks. It pays for special programs oriented towards countywide coordination such as environmental protection, public transportation regulation, and comprehensive planning. It also pays for a variety of administrative support functions required of a large organization: purchasing, budget, human resources, fleet management, finance, legal services, facilities management, citizens assistance, equal opportunity and human relations, and others. Countywide taxes are also used. to provide support to some outside agencies and organizations. Municipal Services The unincorporated tax pays for services normally provided by municipalities. It is commonly referred to as the "MSTU" tax (for "municipal services taxing unit"). MSTU services include land use planning and zoning, traffic engineering, housing and community development, emergency medical services, fire services, parks and recreation, and road maintenance. They also include operation of the Sheriff's patrol program. Library Services The library services tax pays for operation of the main library in Tampa and a network of regional and branch libraries in Tampa and the unincorporated area. It also contributes to the operating cost of the Temple Terrace and Plant City libraries so that library district residents have access to those facilities. Other Services In addition to the services already mentioned, which are largely supported with ad valorem (property) taxes, Hillsborough County administers a variety of other programs using other revenues available to the County. For example, the federal government provides funding for the County's community development block grant program, which provides a variety of programs to redevelop "target" neighborhoods. Other grant programs heavily subsidize the cost of programs for children and the elderly, and job training programs. Detail on specific programs may be obtained from the County's annual budget document, by contacting the Budget Department, or by calling the Hillsborough. County Citizens Action Center (an information and referral. service) at Utility rates provide funding for water and wastewater service in much of the unincorporated area of Hillsborough County. New users pay capacity fees to offset the cost of building water and wastewater treatment facilities. Special residential assessments and tipping fees paid by businesses provide funding for solid waste. disposal. through the County's resource recovery (incineration) facility and its landfill. 3

10 Gasoline taxes provide funding for new roads, bridges, intersections and sidewalks, and for maintenance of the existing transportation network. Impact fees paid by those who build new structures provide funding for capital improvements such as roads, bridges, and sidewalks, neighborhood imd district parks, and fire stations. The County also collects school impact fees on behalf of the School Board of Hillsborough County to pay for the acquisition of land for new schools. A tourist development tax on short-term living accommodations (generally, hotel and motel rooms) is used to support the Tampa Sports Authority, the Tampa/Hillsborough Convention and Visitors Association, the Tampa Convention Center, the Tampa Perfonning Arts Center, the Plant City Baseball Complex, chambers of commerce and other local organizations. A special half-cent sales tax adopted in 1991 provides funding for an indigent medical care program that emphasizes investment in primary care to avoid costly emergency care. A special assessment, first levied in 1991, provides the County funding for storm-water improvements in the unincorporated area. General obligation bonds for the purchase of environmentally sensitive lands were approved by County voters in 1990, What Services Does the County Not Provide? One frequent error is the assumption that the Board of County Commissioners oversees the local school system. While school boards in other states have their budgets approved by the county commission or county board of supervisors, school districts in Florida are headed by separate taxing authorities. Other separate units of government at the local level include a transit authority (Hartline), a port authority, an aviation authority, a children's board, and a multicounty district -- the Southwest Florida Water Management District. Each of these governments have ad valorem taxing power and all but the aviation authority currently levy ad valorem taxes. There are also three cities in the County: Tampa, Plant City, and Temple Terrace. Other areas have strong identities (Brandon, Town and Country, Lutz, Keystone, Carrollwood, Sun City Center, Apollo Beach, Ruskin, etc.) but are part of the unincorporated area rece1vmg municipal services from Hillsborough County. A variety of special districts also exist in Hillsborough County that are dependent or independent of the Board of County Commissioners. Special districts deliver customized services to residents. Residents to choose to pay for these additional services through an equitable assessment of the added cost. For example, the Board established 32 special dependent districts at the request of homeowners associations to maintain entrances to their subdivisions. These districts levy annual assessments appearing on tax bills each November. Two of the largest serve residents of Northdale and Bloomingdale. Among the other types of special districts are community development districts (Westchase, The Eagles, Cheval West, and Parkway Center). These independent districts levy special assessments without approval by the Board of County 4

11 Commissioners and tend to be used in new developments as a means of financing infrastructure. (The City of Tampa also has two such districts -- Tampa Palms and Cory Lakes.) Part II - What Drives the Current Budget? What is the FY 93 Budget? The adopted FY 93 Budget is for the period beginning October I, 1992 and ending September 30, The budget shown in the following table is reported to the State of Florida, and is presented in local news media accounts: FY 93 County Budget (in million $) Sources Beginning Fund Balance Revenue Transfers In Total Available Uses Operating Budget Capital Projects Debt Service Transfers Out Reserves Total Budget $ , $1,445.9 As shown here, the adopted budget for FY 93 was $1.4 billion. Does that represent how much the County spends on day-today services in Hillsborough County? No. The $1.4 billion budget includes dollars that the County does not intend to spend in the current year. These are shown as "reserves" and may include a portion of borrowed funds that must be set aside to cover any future revenue shortfalls that might arise and prevent the payment of principal or interest on the County's debt. The County has also established "rainy day" funds to help cover excess costs of Sheriffs deputies, fire fighters, road maintenance crews, and others who would respond in the event of a natural disaster. It includes dollars used to pay principal and interest on long-term debt -- much like a family budget that includes car payments and mortgage payments. It also includes dollars moved within the internal structure of the budget (between funds and subfunds ), and get counted more than once -- "transfers". Finally, the budget includes dollars set aside to pay for capital projects (roads, fire stations, utility improvements, parks, etc.). If these projects are not completed by the end of the fiscal year, unspent dollars will be carried into the next fiscal year and shown again in the FY 94 budget. The amount carried over from one year to the next is known as "fund balance." Can the Budget be Shown to Better Reflect the Budget for Day-to-day Operations? The following table better illustrates the amount available to pay for the cost of dayto-day operations: 5

12 FY 93 County Budget (in million $) Beginning Fund Balance Less: Reserves Available Fund Balance Revenue Total Available Required Debt Service Capital Projects Budget Available for Operations Operating Budget $ $572.2 Operating Budget (Million$) 1, Q ---";""----~ As shown above, the operating budget increased from $397 million to $554 million over the five years prior to FY 93 - an increase of about 40%, or an average annual rate of just under 7% per year. As shown in the table, the amount of the budget available for day-to-day operations is $572 million, or about $0.6 billion - much less than the $1.4 billion budget shown previously. How Has the Budget Changed OverTime? What Factors Account for the Increase in the County's Operating Budget? Four major factors account for the increase in the County's operating budget: 1- Inflation in the cost of personnel and operating expenses To understand how the budget for day-today services evolved over time to its current level of $572.2 million, we can look at the changes over a five-year period from FY 87 to FY 92. The following chart uses the format shown on the previous page to break out the budget available for day-to-day operations. Government Purchases Inflation lli3bj $1.20 $ l.l $0.80 6

13 As shown in the preceding chart, governments' cost of doing business (purchasing goods and services) increased 19% over a 5-year period. That means what governments could purchase for $1.00 in FY 87 cost $1.19 in FY 92. This is a national average that can be used to illustrate how inflation may have affected Hillsborough County's costs. 2- Growth in due to. an population demand for services expanding service Population growth can be viewed as a simple means of measuring the growth in demand for County services. The. following charts show the increase in the County's population over the same five years and the amount of that growth occurring in the population of the unincorporated area. County Population following chart, increased by more than 38,000, an increase of about 8%. Unincorporated Population (In l,ooo's) 550~ The increase in population does not, howeve.r, adequately address the sharp increases in workload for many County programs. Specific examples are provided later in this document. 3- Regulatory changes requiring tlze County to change!tow it provides services and to add new services The following table shows some major programs affected by regulatory changes: (In 1,000' ) 850ffi Programs Affected by Regulatory Changes Comprehensive Planning Stormwater Management The County's population grew by about 45,000 from FY 87 to FY 92, an increase of about 5 112%. The population of the unincorporated area, as shown in the Wetland Mitigation Solid Waste Recycling 7

14 4- Local initiatives to add or increase services. Some of the more recent local initiatives are presented here: Sheriff Dispatches (In I.OOO's) =~ i I u2067l J-'L---"'?---~ J Samples of Local Initiatives To Acquire Environmentally Sensitive Land To Finance a Preventive Health Care Program To Support Economic Development Programs Over the five years prior to the current fiscal year, the annual number of units dispatched by the Hillsborough County Sheriff's Office increased by almost 97, a 47% increase. As shown below, the circulation of library materials increased 900, an increase of 40% over the same five years. What are Some Examples of Increased Workload? Library Circulation (Mi!Jion items) 4.0 Here are several examples of increased workload. They show the workload increased in many County programs. Some represent increased demand for services by County residents. Others represent increases due to expanding facilities to maintain service standards to an expanding population l 3.0 8

15 Some measures reflect shifts in how sen>ices are provided: Stations with Career Firefighters 40]~ 2~~ The above graph shows that County-paid firefighters operated seven more fire stations in FY 92 than in FY an increase of 41%. Volunteers assisted in staffing two of those stations in FY 87 and four of the stations in.fy 92. Stations staffed solely by volunteers dropped from thirteen in FY 87 to eight in FY a 38% decline. The next chart shows a 115% increase in the number of fire inspections of nonresidential facilities over the five years. r I I I l Fire Inspections 40,000 ~ , ,386.J20,149l ~ J The. fire inspection program now funds itself through fees collected from the businesses protected through regular inspections. Fees are also generated from the transport of sick and injured residents by ambulances operated by the County's Emergency Medical Services Department. Emergency Medical Service responses by paramedics increased 9, 788 per. year from FY 87 to FY a 46% increase. / I I I 40,000 20,000 EMS Responses 0 21,312l 31,100 In addition to opening new neighborhood and district parks over the 5-year period, the County expanded its programmed activity at parks. The number of participants each year in afterschool recreation programs at County parks increased 38%, as shown below: Afterschool Recreation S.Om Program (Million Participants)

16 The follo1ving chart shows the growth in volume of wastewater treated by the County's Public Utilities Department Wastewater Treated (Billion gallons) J~ J As shown above, the volume of wastewater treated by the County utility system increased 1.1 billion gallons, or 20%. The chart below shows that the number of miles of storm sewers maintained by the County increased by 75 miles from FY 87 to FY 92 --an increase of 25%. (Miles) Storm Sewers 4001~ 20: u_: u_:_tj What is the Effect of These Factors? These factors validate the growth experienced in the County's day-to-day operating budget from FY 87 to FY 92. Inflation accounts for about one-half of the increase in the operating budget. Demand for existing services also grew -- in many cases far exceeding the population growth experienced during the five years. Finally, federal and State regulatory requirements and local initiatives redefined the levels and types of services provided by the County to the residents and businesses of Hillsborough County. In all, these factors more than account for the growth in the operating budget. What Factors Have Controlled Growth in the Operating Budget? Two factors have played a role in slowing the growth of the County's operating budget: 1- A slowdown in the growth of the tax base for property (ad valorem) taxes The value of land, improvements, and personal property subject to property taxes increased at a slower pace. Slower growth in property tax revenue placed constraints on the County's ability to add to existing programs without raising tax rates or levying new fees. 2- Budget cuts In recent years the County's budget has reflected cost savings in existing programs to offset some of the cost of new programs. In FY 91, County employees did not receive a cost-of-living increase and program cuts were targeted at administrative (support) departments. In FY 92, over I 00 positions were eliminated with cuts targeted in areas where the service delivery impact on the 10

17 public could be minimized. An aggressive placement program resulted in most of the affected employees being placed in other County jobs but significant savings resulted from fewer employees. How Have Property Taxes Changed for County Taxpayers? The following chart shows how property taxes levied by the County increased from FY 87 to FY 92. It reflects the taxes on a house valued at $75,000, less a $25,000 homestead exemption. Included are taxes levied countywide, plus library district taxes and MSTU taxes. (For comparison purposes, a tax levied by the County on behalf of the Port Authority in FY 87 is excluded because the Port Authority now directly levies the tax.) The increase does reflect a voter-approved tax levy for the purchase of environmentally sensitive land. Taxpayers owning property in one of the municipalities would experience slightly different changes based on changes in their city taxes in place of the MSTU tax Property Taxes,.,11 I 600 +"J.-_ '-"> As seen above, if the price of the house did not change, total taxes increased $51, or about 8% over jive years. Any increase or decrease in the value of the house would proportionately increase or decrease that amount. How Have County Special Assessments and Utility Rates Changed? Other fees paid by County residents living in the unincorporated area (MSTU) have changed more than property taxes, largely reflecting regulatory requirements and funding requirements outside of day-to-day operations. A $12.00 annual stormwater assessment was levied in FY 92 for the first time and funds stormwater improvements. The annual residential assessment for solid waste disposal increased $12.80, from $71.20 in FY 87 to $84.00 in FY 92. (It reached $96.50 in FY 91 but was reduced in FY 92.) The increase reflects, in part, regulatory changes that increased the cost of disposal. Street lighting assessments for those who. live in one of the County's street lighting districts increased $7.5 8, on average, from $38.05 to $ Water and wastewater fees, which reflect both operating costs and a portion of the cost of financing new treatment facilities, increased from $39.75 per month, on average, to $68.40, an increase of $28.65, or 72 percent. The increase reflects regulatory impacts and construction of additional system capacity. In FY 92, the County added a 0.5 percent local option sales surtax to the existing 6 percent Florida sales tax. The Surtax pays for expanded indigent medical care, with a focus on preventive treatment. 11

18 Part III -- Looking Ahead to the FY 94 Budget How the Budget is Developed: A Review of the Process for FY 94 The annual budget process encompasses much of the year. The process is based on a framework of statutory deadlines established by the State of Florida. The remainder of the process is established by the County Administrator and the staff of the County's Budget Department. Interim deadlines are established to ensure that necessary information is collected, pnontles are detennined, and a recommendation is made by the County Administrator. The County Administrator has been designated to serve as the official budget officer for Hillsborough County, to the Board of County Commissioners, which, in tum establishes tax rates and adopts the annual budget. While the process may change somewhat from year to year, an examination of the process for FY 94 illustrates the many steps to adopting an annual budget. Five-Year Outlook Budget Department staff develop a five year financial outlook for the portion of the County's budget funded fully, or in part, with property taxes. This "proforma" budget gives County administration a look at estimated resources and needs for the upcoming fiscal year, FY 94, as well as estimated resources and needs for an additional four years to see trends and to head off any problems before they can develop. As the budget process proceeds, attention turns to replacing the estimates for FY 94 (the first year in the Five-Year outlook) with more specific estimates based on a monthly review of revenues and expenditures in FY 93. This monthly review process is repeated throughout the remainder of FY 93 and in FY94. Establishing Budget Guidelines Using the information from the proforma budget, staff develops a budget instruction manual to explain the process to be used as well as how to fill out budget submission forms. The process calls for departments and agencies to develop "decision units" that describe distinct services and levels at which those services may be offered. Each decision unit is prioritized against all other decision units for the department or agency by funding source. The prioritization of all decision units for an organization allows management a means of determining what services could be maintained in a department given a particular level of funding. By building the budget from the ground up through the ranking of decision units, organizations present what is known as a "zero base budget." That means there is no pre-conceived starting point for the examination of an organization's budget needs. The starting point is zero dollars. This exercise allows each organization to show the cost in FY 94 of continuing all services provided in FY 93. This ".continuation budget" covers the cost of all positions included in the adopted FY 93 budget but excludes any new positions proposed for FY

19 For planning purposes, each department and agency is directed to also show what decision units could be accomplished within the dollars originally adopted for FY 93. The FY 93 funding level for personal services expenditures (wages, salaries, and benefits) plus the funding level for operating expenditures (supplies, utilities, services, etc.) is identified as the organization's "target" level of funding for FY 94. The target budget, when contrasted against the continuation budget, shows the consequences of holding an organization to its adopted budget for day-to-day operations in FY 93. Finally, organizations are allowed to present new service "mandates" -- federal, State, or local requirements for added staffing or other expenditures to provide a service not previously provided, or to pay for a cost previously paid by another entity, public or private. Organizations that receive funding from more than one subfund are required to repeat the process described above for each subfund. Budget Kickoff Budget instructions and forms are distributed at a budget kickoff meeting for all departments and agencies funded by the Board of County Commissioners (held on March 26, 1993 for the FY 94 budget). Prior to that meeting, however, all organizations are offered detailed training on zero base budgeting through the use of decision units. Later in the process, departments receive training in the use of the County's automated budget system. The automated system tracks all line item detail for the County's budget. Budget Submission Revenues associated with each organization are estimated by departments and agencies associated with the revenues, and forwarded to the Budget Department by April 17. Estimates for property tax revenue and stateshared revenues are estimated by Budget Department staff. Most County departments and agencies submit both continuation budgets and target budgets to the Budget Department by April 30. (Some were delayed this year by a reorganization in April that affected certain County Administrator departments.) Submissions include line item detail as well as packages describing the decision units that comprise the budget for each organization. Most Constitutional Officers submit their budgets by June I. Budget Review Budgets are reviewed by Budget Department staff to resolve any errors or omissions in the. materials submitted. In preparation for formal review by the County Administrator, Budget staff meet with selected departments in "dry run" sessions to review their presentations and to recommend changes in, or enhancements to, their presentations. County Administrator Review of Selected Departments In May, the County Administrator holds ten two-hour worksessions to review budget. submissions for selected departments. These sessions are videotaped so that they can be reviewed later by County Commissioners and other interested parties. 13

20 In general, these meetings are attended by the County Administrator, the Assistant County Administrator for Financial Services, the Budget Director, staff members from the Budget Department, and the Assistant County Administrator, department director and key staff for the department under review. The meetings are open to the public. County Administrator Review of Other Departments Beginning in June, the County Administrator meets with each Assistant County Administrator to review the budget submissions for all remaining departments under the County Administrator. Attendance at these meetings is similar to the meetings on individual departments, but the meetings are not videotaped and less time is available for the review of each department. Budget Department Recommendations Upon completion of the County Administrator's reviews, Budget Department staff and the Assistant County Administrator for Financial Services review the budget submissions for all County departments and agencies and prepare. recommendations for discussion with the County Administrator. The County Administrator makes final decisions on the budget to be recommended to the Board of County Commissioners and directs the Budget Department to make final changes. Preparation of a Recommended Budget for FY94 Once final County decisions are completed for the Administrator's recommended budget, Budget Department staff began preparation of documents outlining the County Administrator's recommendations to the Board of County Commissioners. Presentation of the County Administrator's Recommended FY 94 Budget Presentation of the County Administrator's Recommended Budget for FY 94 is made at a budget workshop on July 15, A second workshop for discussion of the budget by the Board of County Commissioners is scheduled for July 22. These workshops are videotaped for airing on cable television. Additional workshops may be scheduled, as needed. Establishment of Proposed Millage Rates for FY 94 in Accordance with TRIM Requirements In accordance with State "Truth-in-Millage" ("TRIM") requirements, the Board of County Commissioners must set maximum millage rates for FY 94 within 35 days of July I, A workshop for establishment of TRIM millages is held July 29. The millages set at the workshop are included on a TRIM notice mailed by the Property Appraiser's Office in August. The TRIM notice also notes the time and place of the Board's first public hearing on the FY 94 budget. This workshop is also videotaped for airing on cable television. As necessary, additional workshops on the budget are scheduled in August. Board of County Commissioners Public Hearings to Adopt the FY 94 Millages and the FY 94 Budget Two public hearings are scheduled for September 9, and September 23, at 6:00 p.m. in the Boardroom at the County 14

21 Courthouse. These public hearings are usually well attended by concerned County residents and are aired live on cable television and videotaped. The FY 94 Budget and all final millages are adopted at the second public hearing. Where Can Information Be Obtained on the FY 94 Budget? The FY 94 budget for Hillsborough County is available. in draft form any time after presentation of the recommended budget by the County Administrator to the Board of County Commissioners on July 15, An Executive Summary and detailed budget documents are produced based on the County Administrator's recommendations, and are available in July and August. After review by the Board of County Commissioners, changes may. be made prior to public hearings scheduled for September 9 and September 23. A summary budget is advertised in a newspaper of general circulation two to five days prior to the second public hearing on September 23. After approval of the County budget by the Board of County Commissioners on September 23, final budget documents are prepared by the Hillsborough County Budget Department. Information on where budget documents are accessible to the public can be obtained by calling the Hillsborough County Budget Department. Copies of the Executive Summary document are generally available to any interested party. Detail documents are generally distributed only as reference sources to lil;jraries, elected County officials, County departments and agencies, bond rating agencies and financial advisors, and the news media. National Recognition for the County's Budget Documents Hillsborough County's annual budget documents are submitted for review by the Government Finance Officers Association of the United States and Canada (GFOA). GFOA has established a program for the review of budget documents to ensure that budget documents serve four distinct functions, by meeting certain criteria established by career government budget officials. The four functions that must be met are: 1- The budget must serve as a policy document for elected officials and administration to convey how the organization will operate, and what process will be used to adopt and amend the annual budget. 2- The budget must serve as an operations guide to the departments and agencies that receive funding through the budget. That includes identifying the resources (dollars and staffing) to be provided and the objectives to be met. 3- The budget must serve as a financial plan, divulging all sources of funding and how those sources will be used. The budget should show data for multiple years so that the new budget can be compared with that for prior years. 4- The budget must serve as a communications device to convey essential information to the diverse groups who use budget information -- elected officials, the public, the news media, bond rating agencies and investors. This purpose is served through a variety of devises: charts and tables, summary explanations, a glossary, assumptions, trends, etc. 15

22 Hillsborough County has received GFOA's Distinguished Budget Presentation Award for its FY 93 Annual Budget, and for each of the five preceding years' budget documents. The GFOA award is good for a single year. Hillsborough County believes its FY 94 budget documents will continue to conform with program requirements and will submit them to GFOA to determine the County's eligibility for another award. Continued participation ensures that documents prepared by County staff continue to convey information in a usable form for the variety of groups who use the budget document. In 1993, Hillsborough County received one of GFOA's highest honors. The Taxpayer's Guide to the Hillsborough County Budget, produced for the first time in 1992, was awarded GFOA's Award for Excellence in Budgeting and Financial Planning. The Taxpayer's Guide was chosen for its unique application as an educational tool on local government budgeting, and as a model for use by governments throughout the United States and Canada. OOV RNMENT FINANCE Off!Cfi:RS ASSOCtATION Distinguished Budget Presentation Au:ard - PREIENTID TO Hlllabotouglt County, Award for Excellence in Budgeting and Financial Planning 1993 Prest~IO HILLSBOROUGH COUNTY, FUJRIDA for TGXpGJI'f' 'I G IM 10 IN Hilb,_. l~ OHutt, loujrot an outsidndinr conlributum "' tht practil:t of rovtrnmtlll jiiigiict II!"' 16