Cherokee County Board of Commissioners

Transcription

1 Cherokee County Board of Commissioners 2013 MILLAGE RATE OVERVIEW Presented By Janelle Funk June 18, 2013

2 1. Determine Community Needs 2. Assess Property Values 3. Determine Cost of Services 4. Consider Other Revenue Sources 5. Remaining Balance To Be Funded by Property Taxes 6. Calculate 2 of 17

3 1. Determine Community Needs Public Safety Judicial Services Tax Admin Other Departments 3 of 17

4 2. Assess Property Values Tax Assessors Office Appraises Reviews/ Appeals Issues Final Tax Digest Preliminary 2013 Net Tax Digest +2.94% * 2012 Net Digest = $6,673,899,650 Reassessment of Existing Property = $45,300,201 (+0.68%) New Growth = $150,846,758 (+2.25%) 2013 Preliminary Net Digest = $6,870,046,609 (+2.94%) * As of of 17

5 2. Assess Property Values Tax Assessors Office Appraises Reviews/ Appeals Issues Final Tax Digest Between 2008 and 2012 the Tax Digest decreased 23% Increase in existing and new property is a sign of economic recovery Property owners allowed to appeal values Could expect Final Net Digest ~ +2.0% to +2.3% 5 of 17

6 3. Determine Cost of Services Budget Targets Set Depts Develop Budgets Finance Reviews County Manager/BOC Review 2013 Budget BREAKDOWN OF GENERAL Adjusted for Change from This is the FUND EXPENDITURES 2014 Budget Pension 2013 % total Compensation 31,227,292 31,131,165 96, % expected cost of General Fund services for FY2014 ~ $58M Benefits 3,434,321 3,422,512 11, % Pension Funding 1,638,909 1,632,809 6, % Total Personnel 36,300,522 36,186, , % Operating 12,447,205 12,855,961 (408,756) 3.1% Capital 73, ,290 (46,223) 7.7% Library Support 1,822,060 1,822, % 0.0% Payments to Other Agencies 560, ,621 (297,187) 40.8% Debt Service 151, ,221 (510,846) 82.3% FY2014 Workers Comp 500, ,472 (100,366) 23.8% Utilities 2,129,359 2,064,828 64, % Transfers to Other Funds 4,008,880 3,265, , % TOTAL FUNDING USES 57,993,008 58,434,123 (441,115) 0.8% 6 of 17

7 3. Determine Cost of Services Budget Targets Set Depts Develop Budgets Finance Reviews County Manager/BOC Review All Departments Given 1% Targets = 2013 Budget Very few exceptions 0% 1% 4% 7% 0% 3% Capital Total Personnel Operating Library Support Pension Funding Included 21% Payments to Other Agencies Targets issued but zerobased budgeting still completed 63% Debt Service Workers Comp Utilities General Fund Breakdown By Expenditure Category Transfers to Other Funds 7 of 17

8 3. Determine Cost of Services Public Safety/ Judicial Services ~ 69% of Total General Fund Expenses 03% 0.3% Budget Targets Set Depts Develop Budgets 3.1% 0.9% 2.9% 1.4% 1.3% 1.2% 2.2% 0.7% 1.4% 2.1% 5.7% 2.3% 0.5% 47% 4.5% 20% Finance Reviews General Fund Breakdown by Agency/Department County Manager/BOC Review Judicial Services Sheriff Office Coroner EMS Transfer Property Management Health & Human Services Library Transfer Senior Services Transfer Information Technology Parks & Recreation Transfer Transportation Transfer Finance/Procurement Tax Administration Elections Department Animal Shelter Transfer RRDA Debt Service Youth Services & Other Community Other General lservices Economic Development Allocated Costs (WC, Utilities) 8 of 17

9 3. Determine Cost of Services Major Variances Budget Targets Set Depts Develop Budgets Finance Reviews Most COED Costs Transferred to Unincorp County Srvcs Fund Reduced Legal Fees/Forensic Audit & Added Legal Allocation to Other Funds Closing of Copy Center Settlement of WC Claims One Time Security/Vehicle Capital Costs County Manager/BOC Review Increase/(Decrease) ($0.8M) ($0.25) ($0.1M) ($0.1M) ($0.1M) Increased drrda Transfer for 100% of Dbt Debt $0.6M New TAVT 1% Commission Revenue Transferred to (UnCS) Fund $0.1M Utilities for New Sheriff Training Center $0.1M Judicial Services Reorganization/IT ISRP Position Total Net Decrease $0.1M ($0.4M) 9 of 17

10 4. Consider Other Revenue Sources Other Taxes Court Fines Charges for Services Miscellaneous Includes Sale of Jones Building $1.6M Transfers In, $0.0 Licenses & Permits, $ Budget General Fund Funding Sources $21.1M TAVT (Net), $4.3 Misc Sources/ Other, $2.3 Other Taxes, $3.2 Fines & Forfeitures, $4.8 Charges for Services, $5.8 Includes Intangible Taxes (related to mortgages), Cable and Bank Franchise Taxes Includes Landfill Fees, Commissions on Tax Collections, Prisoner Housing, Etc. 10 of 17

11 5. Remaining Balance To Be Funded by Property Taxes Calculate Either Cut Budget or Set Provided 3 Options for Setting the General Fund 1. Set At Full County Needs 2. Prioritize ecounty Needs, Reduce Where epossible, And Set at Lower Rollback 3. Take More Risk in RRDA Plan and Use for Reserves All Options Avoid the Likelihood for Furlough Days, and Include COLA for Employees 11 of 17

12 5. Remaining Balance To Be Funded by Property Taxes Calculate Either Cut Budget or Set General Fund Option 1: Set At Full Needs of County Budget Incorporate Other Considerations Building Needed Reserves UnCS needs to be cash basis, need ~ $6.0M General Fund needs ~ $4.0M COLA for Employees This option creates tax increase as compared to the current millage rate 5.825, and the rollback rate. Calculation of Shortfall Needed From Property Taxes FY 2014 Option 1 Actual Needs General Fund Other Revenue $21,104, General Fund Expenditures ($57,993,008) Shortfall ($36,888,245) Calculation of Needed from Property Taxes for 2014 Expenditures $36,888,245 Other Considerations: Improve UnCS Fund Deficit $2,000,000 Improve General Fund Reserve $2,000,000 COLA for Employees (Target 3%) $1,160,983 RRDA Transfer Total Required From Property Taxes $42,049,228 Estimated Final Net Tax Digest 6,816,655, Resulting Rollback Increase Compared to Rollback of 17

13 5. Remaining Balance To Be Funded by Property Taxes Calculate Either Cut Budget or Set General Fund Option 2: Reduce Budget to Fit Within Rollback Reduce Other Considerations Reduce Building Needed Reserves for UnCS Fund Postpone Building General Fund Reserves COLA for Employees This option reduces millage rate from current millage rate (5.825)/no tax FY 2014 Option 2 Calculation of Shortfall Needed From Property Taxes Needs Reduced to Rollback General lfund dother Revenue $21,104, General Fund Expenditures ($57,993,008) Shortfall ($36,888,245) Calculation of Needed fromproperty Taxes for 2014 Expenditures $36,888,245 72% of UnCs Needs for Yr 1 of Build Other Considerations: Improve UnCS Fund Deficit $1,440,000 Improve General Fund Reserve COLA for Employees (Target 3%) $1,160,983 RRDA Transfer Total Required From Property Taxes $39,489,228 Estimated Final Net Tax Digest 6,816,655, increase. Resulting Rollback Increase Compared to Rollback of 17

14 5. Remaining Balance To Be Funded by Property Taxes Calculate Either Cut Budget or Set General Fund Option 3: Reduce Budget to Fit Within Rollback Reduce Other Considerations Postpone Building General Fund Reserves Reduce RRDA Debt Service Budget, and transfer this funding to UnCS Reserve COLA for Employees This option reduces millage rate from current millage rate (5.825)/no tax increase. FY 2014 Option 3 Calculation of Shortfall Needed From Property Taxes Needs Reduced & RRDA Stretch Goal General lfund dother Revenue $21,104, General Fund Expenditures ($57,993,008) Shortfall ($36,888,245) Calculation of Needed from Property Taxes for 2014 Expenditures $36,888,245 Other Considerations: Improve UnCS Fund Deficit $2,000,000 Improve General Fund Reserve $40, COLA for Employees (Target 3%) $1,160,983 RRDA Transfer ($600,000) Total Required From Property Taxes $39,489,228 Estimated Final Net Tax Digest 6,816,655, Resulting Rollback Increase Compared to Rollback of 17

15 5. Remaining Balance To Be Funded by Property Taxes Calculate Either Cut Budget or Set Fire Fund Option 2: Reduce Budget to Fit Within Rollback Small Building of Reserves COLA for Employees This option reduces millage rate from current millage rate (3.394)/no tax increase. Calculation of Shortfall Needed From Property Taxes FY 2014 Option 1 Actual Needs FY 2014 Option 2 Needs Reduced to Rollback Fire Fund Other Revenue $1,562,300 $1,562,300 Fire Fund Expenditures ($17,989,058) ($17,989,058) Shortfall ($16,426,758) ($16,426,758) Calculation of Needed from Property Taxes for 2014 Expenditures $16,426,758 $16,426,758 32% of ISRP Replacements Other Considerations: Prepare for ISRP Replacements $1,280,023 $413,447 COLA for Employees (Target 3%) $384,318 $384,318 Total Required From Property Taxes $18,091,099 $17,224,524 Estimated Final Net Tax Digest 5,111,191, ,111,191, Resulting Rollback Increase Compared to Rollback (0.000) 15 of 17

16 5. Remaining Balance To Be Funded by Property Taxes Calculate Either Cut Budget or Set Parks Bond Option 2: Reduce Budget to Fit Within Rollback 6 8 Month Delay of Next Bond Issuance/Delay Project Spending This option reduces millage rate from current millage rate (0.780)/no tax increase. Calculation of Shortfall Needed From Property Taxes FY 2014 Option 1 Actual Needs FY 2014 Option 2 Needs Reduced to Current Parks Bond ddbts Debt Service Fund dother Revenue $112,000 $112,000 Parks Bond Debt Service Fund Expenditures ($5,815,778) ($5,815,778) Shortfall ($5,703,778) ($5,703,778) Calculation of Needed from Property Taxes for 2014 Expenditures $5,703,778 $5,703,778 Other Considerations: Postpone Parks Spending/Bond Issuance ($215,000) Total Required From Property Taxes $5,703,778 $5,488,778 Estimated Final Net Tax Digest 7,070,251,517 7,070,251,517 Resulting Rollback Increase Compared to Rollback of 17

17 5. Remaining Balance To Be Funded by Property Taxes Calculate Either Cut Budget or Set Summary of Total FY 2014 Option 1 Actual Needs Option 2 Needs Reduced to Rollback FY 2014 Option 3 Needs Balanced with RRDA Stretch Goal Total Calculated Total Current Total Rollback Calculated Increase/(Decrease) to Current (0.060) (0.060) % Increase Over Current 5.16% 0.60% 0.60% Calculated Increase/(Decrease) to Rollback % Increase Over Rollback 5.79% 0.00% 0.00% Note: is the Total Rollback based on property values at The BOC will consider adopting the final Rollback numbers calculated with values as of July 16 th. 17 of 17