2015 Cherokee County Millage Rate. Proposed Scenarios July 7, 2015

Transcription

1 2015 Cherokee County Millage Rate Proposed Scenarios July 7, 2015

2 Three Steps To Calculating A Millage Rate Step #1 Build a Zero-Based Budget for FY2016 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 FY2016 Assess Current Run Rates, Incorporate Expected Changes Step #3 Calculate 2015 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 FY2016

4 General Fund Expenditures Zero-Based Budget Expenditures (Work-in-Process) FY2015 FY2016 Var $ Var % General Services 5,879,170 6,162, , % Tax Administration 3,698,037 3,789,594 91, % Public Safety 31,731,939 31,760,439 28, % Judicial Services 12,434,489 12,905, , % Library/Other 2,700,872 2,792,895 92, % Transfer to RRDA 2,906,450 1,164,295 (1,742,155) -59.9% Transfer to EMS 1,835,720 1,066,464 (769,256) -41.9% Transfers to Other Funds 1,915,759 1,984,744 68, % Utilities/Allocated Costs 2,761,054 2,818,458 57, % Pension Credit (500,000) - 500, % Additional Healthcare - 526, , % Total 65,363,490 64,972,044 (391,446) -0.6% 5% COLA 2,284,173 2,284, % Total with 5% COLA 65,363,490 67,256,217 1,892, %

5 General Fund Expenditures Zero-Based Budget Variance Explanations General Services +$284k IT +$243k Increases to IT maintenance contracts, security recommendations, Microsoft compliance Elections +$29k presidential election years require more poll workers Tax Administration + $91k Tax Commissioner +$40k new FT position, eliminate 2 PT positions Tax Assessor +$51k new vehicles, additional legal costs Judicial Services + $471k Guardian Ad Litem costs +$169k New laws and more children in system Attorney of the Day costs +$332k Library/Other Increase Library Supplement $100k Transfer to RRDA Sale proceeds from Jones building transferred to RRDA Fund, intended for one time pay down of debt -$1.8M Transfer to EMS Increased collections resulting in lowered transfer amount. This is a one time use of higher than needed reserves, Transfer will need to increase in FY2016 Healthcare Costs I&B Fund reserves depleted

6 Step #2 Forecast All Non-Property Tax Revenues

7 General Fund Revenue Revenue Forecast for FY2016 (Work-in-Process) FY2015 FY2016 Var $ Var % Non-Property Taxes 8,877,000 9,346, ,673 5% Licenses & Permits 719, ,500 54,700 8% Charges for Services 5,285,600 5,461, ,800 3% Fines & Forfeitures 4,636,014 4,004,961 (631,053) -14% Miscellaneous 1,016,648 1,007,019 (9,629) -1% Sale of Assets 1,768,000 - (1,768,000) -100% Use of Reserves 391, ,000 73,737 19% Transfer from UCS Fund - 550, , % Total 22,694,325 21,609,553 (1,084,772) -5% Variance Explanations: Non-Property Taxes: TAVT +$215K Reduction of Motor Vehicle +$200K Charges for Services: Commissions on Tax Collections +$150k Fines & Forfeitures: State Court -$450k (2013 = $2.3M, 2014 = $2.0M, 2015 ~ $1.6M, 2016 = $1.5M) Court Reporter Restitution - $200k (one-time revenue in 2015) Sale of Assets Proceeds from sale of Old Jones Bldg set aside to pay down RRDA debt (one-time revenue in 2015) Transfer from UCS fund To cover unincorporated costs in the General Fund such as BOC, County Clerk, County Manager and Recycling

8 Step #3 Calculate 2015 Millage Rate Using Latest Tax Digest

9 Tax Digest 2015 Experienced Growth M&O Digest - Assessment Notices (Before Appeals) From $7.5 Billion to $7.98 Billion 6.47% Increase Existing Properties = 5.08% New Growth = 1.39% M&O Digest Updated Expected End (After Appeals) From $7.5 Billion to $7.97 Billion 6.28% Increase Existing Properties = 5.02% New Growth = 1.26%

10 Costs: General Fund Calculating the Millage Rate Various Scenarios Each 1% COLA increase is worth $456.8k All scenarios include UCS transfer ZBB BASE ZBB BASE ZBB BASE ROLLBACK RATE + 5% COLA + 5% COLA + 3% COLA (using Reserves ) (using Reserves) ZBB as Submitted $64,972,044 $64,972,044 $64,972,044 $64,972,044 COLA $0 1,370,504 2,284,173 2,284,173 Total Net Costs $64,972,044 $66,342,548 $67,256,217 $67,256,217 Non-Property Tax Revenue ($21,144,553) ($21,144,553) (21,144,553) ($21,144,553) Use of Reserves ($465,000) ($2,622,859) Amount for Property Taxes $43,827,491 $45,197,995 $45,646,664 $43,488,805 Tax Digest (Estimated End) 7,969,361,360 7,969,361,360 7,969,361,360 7,969,361,360 Calculated Millage Rate Proposed Millage Rate

11 Review of the 5% COLA with Current Millage Rate Using GF reserves of $465k The County s Fund balance would still adhere to the Reserve Policy of at least10% of Operating Expenses FY2014 Actual $11,147,035 FY2015 Forecast $11,056,198 FY2016 Budget $10,591,198 UCS Fund Transfer Revenues are derived from Insurance Premium Tax and is based on population which continues to increase each year. Estimated revenues for FY 2016 = $7.8M, $200k more than received in FY2014 The transfer would be used to cover unincorporated costs in the General Fund such as BOC, County Clerk, County Manager and Recycling

12 Comparison of Millage Rates General Fund Millage Rate Scenarios Current Rollback ZBB ZBB + 3% COLA + 5% COLA (using Reserves )

13 Fire Fund Expenditures Zero-Based Budget Expenditures (Work-in-Process) FY2015 FY2016 Var $ Var % Personnel 16,852,169 17,290, , % Operating Costs 3,119,205 3,180,943 61, % Capital 534,145 40,000 (494,145) -92.5% Utilities/Allocated Costs 1,035,538 1,138, , % Additional Healthcare 236, , % Total 21,541,057 21,886, , % 5% COLA 779, , % Total with 5% COLA 21,541,057 22,666,244 1,125, % Variance Explanations: 12 new Employees $485k Eliminate 17 PT -$281k Operating increases $62k (mainly in Fire IT)

14 Fire Fund Revenue Revenue Forecast for FY2015 (Work-in-Process) FY2015 FY2016 Var $ Var % Non-Property Taxes 600, , , % Licenses & Permits 30,000 35,000 5, % Charges for Services 1,193,803 1,293, , % Miscellaneous 120,149 11,000 (109,149) -90.8% Use of Reserves 894, ,000 (584,950) -65.4% Total 2,838,902 2,513,539 (325,363) -11.5% Variance Explanations: Non-Property Taxes TAVT Charges for Services Fire Protection fees from Cities Miscellaneous One time reimbursement from the volunteers for equipment in FY2015 Use of Reserves FY2014 Fund balance actual - $5,061,865 FY2015 Forecast - $4,572,469 FY2016 as Budgeted above $4,262,469

15 Fire Fund Calculating the Millage Rate Various Scenarios ZBB BASE ZBB BASE ZBB BASE ROLLBACK RATE + 5% COLA + 5% COLA Costs: & 3% COLA (using reserves) (using reserves) ZBB as Submitted $21,886,369 $21,886,369 $21,886,369 $21,886,369 COLA $0 $467,925 $779,875 $779,875 Total Net Costs $21,886,369 $22,354,294 $22,666,244 $22,666,244 Non-Property Tax Revenue (2,203,539) ($2,203,539) ($2,203,539) ($2,203,539) Use of Reserves ($310,000) ($1,394,305) Amount for Property Taxes $19,682,830 $20,150,755 $20,152,705 $19,068,400 Tax Digest (Estimated End) 5,865,395,231 5,865,395,231 5,865,395,231 5,865,395,231 Proposed Millage Rate

16 Comparison of Millage Rates Fire Fund Tax Levy $47.0M 2015 Millage Rate Scenarios Tax Levy $40.3M Tax Levy $45.9M Tax Levy $47.7M Tax Levy $47.0M Current Rollback ZBB ZBB + 3% COLA ZBB + 5% COLA (using Reserves)

17 Parks Bond Debt Service Calculating the Millage Rate Parks Bond Debt Service Fund Expenditures - Current 6,785,955 Non-Property Tax Revenue (180,975) Property Taxes Must Equal 6,604,981 Tax Digest (Estimated After Appeals) 8,398,492,725 Calculated Millage Rate The current expenditures include repayment of the $500k loan from Unincorporated County Services Fund needed in FY2015 because of the delayed sale of Dunn tract

18 Parks Bond Debt Service Calculating the Millage Rate Various Scenarios BASE CURRENT ROLLBACK COSTS RATE RATE Total Net Costs $6,785,955 $6,785,955 $6,785,955 Non-Property Tax Revenue ($180,975) ($180,975) ($180,975) Possible Land Sale ($356,502) ($692,442) Amount for Property Taxes $6,604,981 $6,248,479 $5,912,539 Tax Digest (Estimated End) 8,398,492,725 8,398,492,725 8,398,492,725 Proposed Millage Rate

19 Comparison of Millage Rates Parks Bond Debt Service Tax Levy $6.0M 2015 Millage Rate Scenarios Tax Levy $5.6M Current Required Rollback

20 Average Homeowner Impact Average Home Assessment = $212,300 Current Rollback ZBB ZBB with 3% COLA & possible land sale ZBB with 5% COLA using reserves ZBB with 5% COLA using reserves w/possible land sale Millage Rate General M&O Fire Fund Parks Bond Total Rate Dollar Impact General M&O $ $ $ $ $ $ Fire Fund $ $ $ $ $ $ Parks Bond $63.18 $59.78 $66.83 $63.18 $66.83 $63.18 Total Rate $ $ $ $ $ $ Difference $ -$ $ $4.48 $3.65 $0.00 Difference % -5.0% -2.6% -0.6% 0.4% 0.0%

21 Breakdown of County M&O What Services Are Provided for $457.78? ESTIMATED 2016 BUDGET FOR GENERAL FUND OPERATIONS TOTAL BUDGET $ FUNDED BY PROP TAXES DEPT % OF TOTAL YOUR TAX DOLLARS GO TO: General Admin Services 1,328, , % $9.05 Tax Administration 3,917,420 2,658, % $26.66 Health & Human Services 318, , % $2.17 Elections 755, , % $5.14 Finance & Procurement 856, , % $5.83 Information Technology 2,034,526 1,380, % $13.85 Libraries 1,997,786 1,355, % $13.60 Judicial Services 13,328,575 9,046, % $90.72 Law Enforcement 32,911,344 22,336, % $ Coroner 178, , % $1.22 RRDA Debt Service 1,164, , % $7.92 Youth Services & Other Community 453, , % $3.09 Property Management 1,172, , % $7.98 Transfers to Other Funds: Senior Services 482, , % $3.29 Parks and Recreation 1,039, , % $7.08 Transportation 235, , % $1.61 Animal Shelter 422, , % $2.88 Emergency Medical Services 1,271, , % $8.66 Healthcare Transfer 526, , % $3.58 Economic Development 40,000 27, % $0.27 Allocated Costs (WC, Utilities) 2,818,458 1,912, % $19.18 TOTAL GENERAL FUND 67,256,217 45,646, % $457.78