2016 Millage Rate Hearings. Finance Department

Transcription

1 2016 Millage Rate Hearings Finance Department

2 2012 Actuals Overview 2015 ACTUALS Review of 2015 Actuals-General Fund Budgeted Revenues 38,183,825 Budgeted Expenditures 40,422,979 Budgeted Deficit (2,239,154) Actual Revenues 38,508,188 Actual Expenditures 39,936,370 Actual Deficit (1,428,182)

3 2016 APPROVED BUDGET General Fund Revenues Expenditures Taxes 31,080,000 General Government 7,756,682 Licenses and Permits 425,500 Judicial 5,795,196 Intergovernmental Revenue 1,746,600 Public Safety 14,459,057 Charges for Service 3,005,510 Public Works 6,333,846 Fines and Forfeitures 1,020,000 Health & Welfare 398,000 Investment Income 3,000 Culture & Recreation 1,010,122 Contributions/Donations - Housing & Development 1,989,943 Miscellaneous Income 868,550 Debt Service 1,977,990 Other Financial Sources 490,200 Other Financing Uses 1,320,914 Contingency 500,000 Total Revenues 38,639,360 Total Expenditures 41,541,750 Budgeted Surplus/Deficit (2,902,390)

4 Challenges for 2013 CHALLENGES FOR 2017 Under new LOST agreement that became effective 01/01/2013 (negotiated in 2012), percentage will reduce from % to % in 2017 & 2018, cost to county due to reduction in 200,000 HB 386 Effect of exemption on sales tax on energy used in manufacturing, sales tax collections are down 4%. Future operating impact of 2015 SPLOST, Edwards Park Gymnasium & New Fire Station Pension Funding added back to 2017 Budget Removed paving from 2015 & 2016 Budget (SPLOST paving starts summer 2016) No SPLOST funds for PW Equipment or County Vehicle Replacement General Fund support for 911 Fund

5 911 FUND UPDATE 911 Fund does not generate enough current revenues to cover current expenditures, current deficit = 570, Fund deficit has been covered in the past with 911 Fund Balance 911 Fund Balance is dwindling Projected 911 Fund Transfer from General Fund 2017 and future years = 600,000 (new burden to General Fund) Revenue rates are set by the State of Georgia, HB designed to give relieve to local governments was dropped this year.

6 2012 LOST NEGOTIATION New LOST agreement with City of Dalton Old agreement = Whitfield County % New Agreement = Whitfield County % Loss of Est 3 Million dollars in LOST Revenue WC Dalton Dalton portion WC Rollback OLD Agreement LOST Revenue WC Dalton Dalton Portion WC Rollback NEW Agreement

7 LOST Certificate Percentages 2013 & 2014 = % 2015 & 2016 = % 2017 & 2018 = % 2019 & 2020 = % 2021 & 2022 = % *Reduction in Sales Tax Revenue due to Change in % for 2017 = 200,000

8 HB 386 Beginning January 2013, state and local sales tax on energy used in manufacturing is being phased out over a 4 year period. (2016 = 100%) Whitfield County has elected not to impose a 2% excise tax that would replace the loss of this revenue. Loss of sales tax on automobiles replaced by new TAVT tax GATE Exemption agricultural sales and use tax exemption for qualified farmer or agricultural producers. Loss of Sales Tax Revenue for Whitfield County - unknown factor but YTD sales tax revenue are down 4% compared to last year

9 PROPERTY TAX DIGEST HISTORY GENERAL FUND Comparison of Tax Digest % Freeport Gross Digest 3,296,354,072 3,379,495,530 3,374,429,078 3,456,291,471 3,444,459, ,787,843 Exemptions Net M&O Digest 2,805,174,011 (491,180,061) (835,851,413) (812,616,543) (869,629,696) (906,601,021) (896,054,401) 2,543,644,117 2,561,812,535 2,586,661,775 2,537,858,074 2,531,819,442 % Change -9.32% 0.71% 0.97% -1.89% -0.24% *Cost of increase of Freeport Exemption = 2 Million/ , 2.8 Million in 2015

10 Level 1 Freeport Exemption Map Full Freeport Partial Freeport No Freeport Info provided by Georgia Department of Economic Development *June 2016

11 2015 Millage Rates 2015 Millage rate special tax district = Current M&O millage rate = Millage rate unincorporated area = LOST cannot be used to roll back special tax millage.

12 Millage Ranking County Uninc Millage 2015 Population 1 Fannin ,760 2 Hart ,446 3 Union ,566 4 Greene ,321 5 Towns ,771 6 Harris ,663 7 Catoosa ,311 8 Oconee ,035 9 Heard , Laurens , Murray , Pickens , Marion , Putnam , Oglethorpe , Mcduffie , Glynn , Gilmer , Forsysth , Dawson , Dade , Taylor , Coffee , Hall , Carroll , Walker , Chattahoochee , Columbia , Burke , Fayette , Webster , Bartow , Whitfield ,542 Whitfield County has the second largest homestead exemption in the state at 20,000

13 2015 Millage Rate Comparison Bartow Floyd Lowndes Newton Fayette Doughtery City of Dalton Whitfield 2015 M&O Rate GF Budget Population 102,747 96, , , ,714 91,332 33, ,216 Per Capita Spending

14 SALES TAX HISTORY COUNTY PORTION Sales Tax Collections LOST Negotiations % % % Budgeted *LOST Percentage dropped in 2013 to % *LOST Percentage dropped in 2015 to % *LOST Percentage will drop in 2017 to %

15 TAVT REvenue TAVT REVENUE New 6.5% fee on value of vehicle at time of title, effective March 1, (2015 rate = 7.0%) Replaces sales tax revenue and ad valorem taxes on autos Collections for 2015 = 1,979,878 Average monthly collections = 165,000 Average monthly collections 2016 = 150,000 Budgeted Collections Monthly 2017 = 140,000

16 TAVT Taxpayer Impact TAXES UNDER OLD SYSTEM Whitfield County Tax Payer Bill under old system: Citizen buys a car worth 20,000 Citizen Pays 7% Sales Tax = 1,400 Citizen Pays Ad Valorem Taxes on Vehicle every year on birthday based on current value TAXES UNDER CURRENT SYSTEM Whitfield County Tax Payer Bill under new system: Citizen buys a car worth 20,000 Citizen Pays 7% TAVT Fee 1,400 Citizen pays no Ad Valorem Tax 1 st Year Birthday Tax = Total Cost Old System = 1, Total Cost New System = 1, Savings =

17 2016 TAN = 6,750,000 What is a TAN? Tax Anticipation Note issued by governments used to fulfill a short-term cash need. Typically have maturities of less than one year - must be payable on or before December 31 of the calendar year in which they are used. In our case, would be used to relieve cash flow burden during the later part of the year; note would be paid with property tax revenues. No vote is required. May effect our credit rating if we need to issue in multiple years. We issued a TAN in August this year. The TAN was issued as a line of credit. Only way to lower TAN amount for next year is to raise millage rate in 2016 *Estimated amount 2017 TAN with no millage increase in 16 = 13,000,000