2016 Cherokee County Millage Rate. Proposed Scenarios June 21, 2016

Transcription

1 2016 Cherokee County Millage Rate Proposed Scenarios June 21, 2016

2 Three Steps To Calculating A Millage Rate Step #1 Build a Zero-Based Budget for FY2017 Departments Build Proposed Budgets Based on Current Needs Conduct Budget Review Meetings with the County Manager Step #2 Forecast All Non- Property Tax Revenues Available to Support ZBB Expenditures in FY2017 Assess Current Run Rates, Incorporate Expected Changes Step #3 Calculate 2016 Millage Rate Using Latest Tax Digest ZBB Expenditures Non Property Tax Revenues = Property Taxes Necessary to Fund Budget

3 Step #1 Build a Zero-Based Budget for FY2017

4 General Fund Expenditures Zero-Based Budget Expenditures (Work-in-Process) FY2016 Revised Budget FY2017 Proposed Budget Var $ Var % General Services 6,249,469 6,569, , % Tax Administration 4,018,894 4,013,142 (5,752) -0.1% Public Safety 33,228,579 33,006,132 (222,447) -0.7% Judicial Services 13,463,295 14,286, , % Library/Other 2,730,430 2,758,480 28, % Transfer to RRDA 1,114,295 1,101,651 (12,644) -1.1% Transfer to EMS 1,270,234 1,200,000 (70,234) -5.5% Transfers to Other Funds 1,993,833 1,890,185 (103,648) -5.2% Utilities/Allocated Costs 2,753,469 2,735,902 (17,567) -0.6% Pension Increase - 864, , % Additional Healthcare - 854, , % Total 66,822,498 69,278,944 2,456, % 2% COLA 964, , % Total w/cola 66,822,498 70,243,865 3,421, %.25 mill for Economic Dev 2,111,595 2,111, % Total w/cola & COED 66,822,498 72,355,459 5,532, %

5 General Fund Expenditures Zero-Based Budget Variance Explanations General Services +$319k Community Services +$235k Agency being reinstated with zero impact to General Fund budget Coroner +$66k New vehicle for transports, more Indigent burials Judicial Services +822k New positions, possible Death penalty case Healthcare Costs +854k Increased Medical and Drug claim cost Increase in Pension Contributions +864k There has been a change in both the mortality tables and the demographics of our plan that have led to increased required contributions to our plan.

6 Step #2 Forecast All Non-Property Tax Revenues

7 General Fund Revenue Revenue Forecast for FY2017 (Work-in-Process) FY2016 FY2017 Var $ Var % Non-Property Taxes 9,346,673 9,743, ,376 4% Licenses & Permits 774, ,000 7,500 1% Charges for Services 5,466,449 5,666, ,551 4% Fines & Forfeitures 4,031,420 4,085,000 53,580 1% Miscellaneous 1,007,019 1,014,973 7,954 1% Use of Reserves 671,552 (671,552) -100% Total 21,297,613 21,291,022 (6,591) 0% Variance Explanations: Non-Property Taxes: Intangibles +$300K, Franchise Tax +$150K, Reduction of Motor Vehicle +$133K TAVT -$215K Charges for Services: Commissions on Tax Collections +$80k, Landfill Use Fees +$120K Fines & Forfeitures: Probate Court +$65k

8 Step #3 Calculate 2016 Millage Rate Using Latest Tax Digest

9 Tax Digest 2016 Experienced Growth M&O Digest - Assessment Notices (Before Appeals) From $7.96 Billion to $8.50 Billion 6.78% Increase Existing Properties = 3.10% Other Growth = 3.68% M&O Digest Updated Expected End (After Appeals) From $7.96 Billion to $8.45 Billion 6.12% Increase Existing Properties = 3.03% Other Growth = 3.09%

10 General Fund Calculating the Millage Rate Various Scenarios ZBB BASE ZBB BASE w/2% COLA ZBB BASE w/2.5% COLA ZBB BASE w/3% COLA Costs: ZBB as Submitted 69,278,944 $69,278,944 $69,278,944 $69,278,944 COLA $964,920 $1,206,150 1,447,380 Total Net Costs $69,278,944 $70,243,865 $70,485,095 $70,726,325 Non-Property Tax Revenue (21,291,022) (21,291,022) (21,291,022) (21,291,022) Amount for Property Taxes $47,987,922 $48,952,843 $49,194,073 $49,435,303 Tax Digest (Updated End) 8,446,378,700 8,446,378,700 8,446,378,700 8,446,378,700 Proposed Millage Rate Increase compared to Rollback 2.30% 4.36% 4.88% 5.38% Proposed Millage Rate w/ec Dev.25mill Increase compared to Rollback 6.81% 8.86% 9.38% 9.88%

11 Fire Fund Expenditures Zero-Based Budget Expenditures (Work-in-Process) Variance Explanations: 6 new Positions $326K FAO/Paramedic Increases $170K Operating increases $56K, WC Claims $64K

12 Fire Fund Revenue Revenue Forecast for FY2015 (Work-in-Process) FY2016 FY2017 Var $ Var % Non-Property Taxes 863,736 1,016, , % Licenses & Permits 35,000 35, % Charges for Services 1,293,803 1,580, , % Miscellaneous 11,000 23,000 12, % Use of Reserves 345,947 (345,947) % Total 2,549,486 2,654, , % Variance Explanations: Non-Property Taxes TAVT +$110K, Intangibles +$.6K Charges for Services Fire Protection fees from Cities +$286K Miscellaneous Use of Reserves Budgeted in FY2016, currently no use of reserves budgeted in FY2017

13 Fire Fund Calculating the Millage Rate Various Scenarios ZBB BASE ZBB BASE ZBB BASE ZBB BASE Costs: w/2% COLA w/2.5% COLA w/3% COLA ZBB as Submitted $23,907,406 $23,907,406 $23,907,406 $23,907,406 COLA $334,601 $418,251 $501,901 Total Net Costs $23,907,406 $24,242,007 $24,325,657 $24,409,307 Non-Property Tax Revenue (2,654,810) ($2,654,810) ($2,654,810) ($2,654,810) Amount for Property Taxes $21,252,596 $21,587,197 $21,670,847 $21,754,497 Tax Digest (Updated End) 6,208,555,894 6,208,555,894 6,208,555,894 6,208,555,894 Proposed Millage Rate Increase compared to Rollback 3.10% 4.73% 5.12% 5.51%

14 Parks Bond Debt Service Calculating the Millage Rate Base Costs Total Net Costs $5,804,809 Non-Property Tax Revenue ($308,600) Amount for Property Taxes $5,496,209 Tax Digest (Estimated End) 8,977,483,946 Proposed Millage Rate Decrease compared to Rollback % Total Net Costs include repayment of the $500k loan from Unincorporated County Services Fund needed in FY2015 because of the delayed sale of Dunn tract. The County completed an advanced refund of the Parks Bond, which resulted in overall savings of $3.6M to reduce the millage rate by mills.

15 Average Homeowner Impact Average Home Assessment = $229,300 Current ZBB ZBB W/2% COLA ZBB W/2.5% COLA ZBB W/3% COLA Millage Rate General M&O Fire Fund Parks Bond Total Rate % -0.13% 0.29% 0.71% Dollar Impact General M&O $ $ $ $ $ Fire Fund $ $ $ $ $ Parks Bond $68.24 $56.22 $56.22 $56.22 $56.22 Total Rate $ $ $ $ $ Difference $ -$ $1.57 $2.13 $5.76 Difference % -1.87% -0.18% 0.24% 0.65% Economic Development (COED) Addt'l Millage Rate Addt'l Impact To Homeowner $10.84 $21.68 Addt'l Increase over Current Rate 2.19% 4.37%

16 Breakdown of County M&O What Services Are Provided for $502.63? ESTIMATED 2017 BUDGET FOR GENERAL FUND OPERATIONS TOTAL BUDGET $ FUNDED BY PROP TAXES DEPT % OF TOTAL YOUR TAX DOLLARS GO TO: General Admin Services 1,719,006 1,197, % $12.30 Tax Administration 4,181,398 2,914, % $29.92 Health & Human Services 208, , % $1.49 Elections 756, , % $5.42 Finance & Procurement 850, , % $6.09 Information Technology 2,102,562 1,465, % $15.04 Libraries 2,060,074 1,435, % $14.74 Judicial Services 14,766,398 10,290, % $ Law Enforcement 34,350,921 23,939, % $ Coroner 249, , % $1.78 RRDA Debt Service 1,101, , % $7.88 Youth Services & Other Community 459, , % $3.29 Property Management 1,078, , % $7.72 Transfers to Other Funds: $0.00 Senior Services 552, , % $3.95 Parks and Recreation 822, , % $5.89 Transportation 264, , % $1.89 Animal Shelter 462, , % $3.31 Emergency Medical Services 1,474,488 1,027, % $10.55 Economic Development 45,000 31, % $0.32 Allocated Costs (WC, Utilities) 2,735,902 1,906, % $19.58 TOTAL GENERAL FUND 70,243,865 48,952, % $502.63

17 Next Steps Advertise Proposed M&O Rate in Sunday, June 26 Cherokee Tribune Public Hearing Tuesday, July 5 Public Hearing Tuesday, July 19 Public Hearing Thursday, July 21 Adopt All County Rates Thursday, July 21