2017 General Fund Revenue Forecast

Transcription

1 Livingston County 2017 General Fund Revenue Forecast Revenue Forecast Committee June 22, 2016

2 Revenue Committee William Green - County Commissioner Sally Reynolds - Register of Deeds Jennifer Nash Treasurer Melissa Scharrer - Friend of the Court Ken Hinton - County Administrator Cindy Catanach - Deputy County Admin./Financial Officer Hilery DeHate - Financial Analyst/ Finance Elizabeth Hundley County Clerk Leslie Riddle Deputy County Clerk John Evans Circuit Court Administrator Ann White Court Financial Officer Aaron Everest Drain Matt Mlynarchek Deputy Treasurer Joe McClure - Financial Analyst/ Sheriff Department Eric Sanborn Lt./Sheriff Department Sue Bostwick - Equalization Allison Nalepa Communication Specialist

3 System of State & Local Tax Michigan system of state & local tax has 60 elements - 38 state and 22 by, or for local, governments. Voter approval required to level new local taxes or increase rate of existing taxes. Taxes Levied to raise revenue for the general operation of government Levied to benefit the general public Compulsory in nature. User Fees Must serve a regulatory purpose rather than a revenue-raising purpose Must be proportionate to the necessary costs of the service or commodity, and imposed on those benefiting from the right or service improvement supported by the fee Voluntary in nature 2015 Property taxes accounted for 64% of GF revenue 2015 User fees provided about 16% of GF revenue

4 County Taxes Local Tax Type Description General Property Tax Property Assessed against real and personal property. Taxable value cannot increase in any one year more than the lesser of 5% or the rate of inflation. Numerous exemptions exist including government property, certain property owned by nonprofit religious, charitable or educational organizations, property subject to specific local taxes in lieu of property taxation, and other personal property exemptions. Industrial and commercial personal property placed in service during or after 2013 is exempt. Similar property in service before 2013 is being phased out through Constitutional limit on millage rate can be increased by 3 mills in counties with separate, voter fixed allocations. The state reimburses local governments at a rate of $2.00 per acre in lieu of property taxes. Local Community Stabilization Share Tax County Real Estate Transfer Tax Sales Related Property Administered by the Michigan Department of Treasury to be disbursed in accordance with the Local Community Stabilization Authority Act (2014 PA80) General fund. Generally.11% of value of transferred real property. General fund.

5 County Taxes (Continued) Local Tax Type Description County Charge Convention and Tourism Marketing Fees Accommodations (Hotel-Motel) Taxes Stadium and Convention Facility Taxes Business Privilege Sales Related Sales Related Sales Related Charge per line, monthly for first 10 lines then 1 charge per each additional 10 lines, Livingston rate is $1.85. Restricted for 911 use. Administered by, and for the benefit of, the county convention bureau. Different rules for counties under 600,000 population and counties over 700, counties (does not include Livingston) under 600,000 levy 5% tax in Limited uses, convention facilities or promotion of tourism and convention business. Selected counties and cities for the purpose of stadium construction. None in Livingston. * Information from "Outline of the Michigan Tax System, 2016 Edition", Citizens Research Council of Michigan

6 Tax-In-Lieu Local Tax Type Description Mobile Home Trailer Coach Tax Industrial Facilities Tax Property Property $3.00 in lieu of property tax. $.50 to the County. In lieu of property tax up to 12 years. 100% of school district share, remainder distributed same as General Property tax. Obsolete Properties Tax Neighborhood Enterprise Zone Facilities Tax Hydroponics and Aquaculture Facilities Specific Tax Enterprise Zone Facilities Tax Property Property Property Property In lieu of property tax up to 12 years. School district share can be reduced by up to one half, remainder distributed same as General Property tax. In lieu of property tax up to 15 years. School district share goes to State Aid Fund, remainder distributed same as General Property tax PA512 In lieu of property tax. Rate is 25% of general property tax levies and qualifies for PRE for school district operating purposes. In lieu of property tax up to 10 years. Tax goes to local unit.

7 Tax-In-Lieu (Continued) Local Tax Type Description Low Grade Iron Ore Specific Tax Commercial Rehabilitation Tax Property Property In lieu of property tax. School district share goes to State Aid Fund, remainder distributed same as General Property tax. In lieu of property tax up to 10 years. 100% of school district share, remainder distributed same as General Property tax. Commercial Facilities Tax Property In lieu of property tax up to 12 years. School district share goes to State Aid Fund, remainder distributed same as General Property tax. Commercial Forest Tax Qualified Forest Tax Property Property In lieu of property tax. $1.25 per acre. Deposited into Private Forestland Enhancement Fund. In lieu of property tax. 2 mills on taxable value of parcel. Deposited into Private Forestland Enhancement Fund. * Information from "Outline of the Michigan Tax System, 2016 Edition", Citizens Research Council of Michigan

8 2017 Headlee Reduction Fraction Calculation Month & Year CPI - Index Month & Year CPI - Index October October November November December December January January February February March March April April May May June June July July August August September September Average Ratio: % Change: 0.5%

9 Forecasting Process Identify Major General Fund Revenue Sources Initial Committee Meeting Comprised of County Subject Matter Experts (SME) from various County Departments Level 1 Revenue Projection Developed with input from each of the SME s as well as other departmental employees knowledgeable about their department operations Enter Revenue Forecast into Level 1 Base projection Provide projection of Level 1 Revenue Forecast to Finance Committee Follow Up Analysis (take place between Level 2 and Level 3) Evaluate current activity Make adjustments as needed through Level 3

10 Levels of Budget Process Level 1 Level 2 Level 3 Level 4 Level 5 Base Projection Department Request Administration Recommendation Finance Committee Review/Recommendation Adopted More information on the process levels can be found on the County Administration Finance web page:

11 Revenue Sources OTHER REVENUE TRANSFERS IN Category TAXES 2017 Projected $27,312,000 INTEREST RENTAL INCOME CHARGES FOR SERVICE 14% STATE SOURCES 12% TAXES 62% FINES & FORFEITURES LICENSE & PERMITS CHARGES FOR SERVICE RENTAL INCOME INTEREST OTHER REVENUE FEDERAL SOURCES $355,050 $423,225 $5,996,226 $1,469,490 $318,300 $2,633,820 $21,000 STATE SOURCES $5,242,946 LICENSE & PERMITS FINES & FORFEITURES CONTRIBUTIONS FROM LOCAL $28,100 TRANSFERS IN $366,642 Total: $44,166,799

12 Historical Revenues & Expenses $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ Revised 2017 Projected 2018 Projected Revenues $47,840,540 $46,432,921 $45,250,257 $43,237,150 $41,404,406 $40,330,696 $40,813,095 $42,800,507 $44,756,517 $43,432,554 $44,166,799 $44,788,405 Expenses $46,126,146 $44,816,588 $42,619,585 $40,915,515 $40,389,246 $40,038,145 $39,557,263 $43,508,294 $42,106,297 $45,424,083

13 Revenues At A Glance Taxes Charges for Services 2015 Actual 2015 Actual 2016 Revised 2017 Projected 2018 Projected $ Revised $367K 2017 Projected $189K (2017 compared (2017 compared to 2016) to 2016) 2018 Projected $27.3 $6 Millions $26.4 $26.8 $27.2 $27.6 $28.0 Millions $5.6 $5.8 $6.0 $6.2 State Sources Rental Income 2015 Actual 2015 Actual 2016 Revised 2016 Revised 2017 Projected 2018 Projected $5.2 $25K (2017 compared to 2016) 2017 Projected 2018 Projected $1.5 $114K (2017 compared to 2016) Millions $4.8 $5.0 $5.2 $5.4 $5.6 $5.8 Millions $0.0 $0.4 $0.8 $1.2 $1.6

14 Tax Base Source: Equalization % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 7.00% 6.30% 6.70% 6.57% 6.00% 5.50% 2.30% 2.40% 2.30% 1.59% 1.50% 77.20% 78.30% 78.80% 79.73% 80.00% 80.00% 1.50% 20.00% 10.00% 0.00% 2.50% 2.50% 2.40% 2.36% 2.50% 2.50% 11.00% 10.50% 9.80% 9.75% 10.00% 10.50% Projected 2018 Projected Commercial Industrial Residential Agricultral Personal Property

15 Number of Permits New Construction Source: Equalization Projected Other Permits New Housing Permits 2018 Projected

16 Percent of Change State Equalized Value Source: Equalization 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% % Projected 2018 Projected Agricultral Commercial Industrial Residential Personal Property

17 Assessed Vs. Taxable Value Source: Equalization $11,500,000, $11,000,000, $10,500,000, $10,000,000, $9,500,000, $9,000,000, $8,500,000, $8,000,000, $7,500,000, $7,000,000, Assessed Value Taxable Value

18 Millions Property Tax Forecast Year Property Tax Revenue 2007 $29,085, $29,025, $28,436, $26,682, $25,524, $24,970, $25,198, $25,808, $26,885, $27,170, $27,442, $27,991,000 Property Tax Revenue $30 $29 $29 $28 $28 $27 $27 $26 $26 $25 $ Amount Changed % Changed 2014 Property Tax Revenue $25,808, Property Tax Revenue $26,885,973 $1,077, % 2016 Budgeted Revenue $26,770, Revised Projected Revenue $27,170,000 $284, % 2017 Projected Tax Value $27,442,000 $272,000 1% 2018 Projected Tax Revenue $27,991,000 $549,000 2%

19 Captured Values Source: Treasurer DDA'S, TIFA'S AND LDFA'S Year Taxable Value Revenue Captured 2010 $185,444,159 $510, $230,798,883 $465, $215,284,090 $450, $191,001,836 $411, $185,854,230 $390, $206,763,006 $416, $170,554,109 $350,000

20 Interest Income Source: Treasurer General Fund Investment Interest 2004 $484, $824, $1,110, $1,177, $808, $337, $115, $81, $60, $53, $89, $182, YTD (5/31) $101, Budgeted $225, Budgeted $225,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0

21 Tax Delinquency Source: Treasurer Year Tax Adjusted Levy Total Delinquency Del Rate 2007 $282,769,925 $22,191, % 2008 $276,848,463 $25,068, % 2009 $273,169,009 $21,921, % 2010 $256,436,642 $18,197, % 2011 $247,875,955 $16,054, % One of the lowest delinquency rates in Michigan $247,012,311 $13,098, % 2013 $249,657,258 $11,399, % 2014 $253,300,901 $9,494, % 2015 $261,356,891 $8,506, %

22 Revenue Sharing $1,429, $2,997,785 $3,078,725 $3,580,449 $3,109,165 $3,140,257 $3,140, $2,563,336 $2,297, Projected State Share Reserve Fund 2018 Projected

23 ,219 1,132 1,309 Year End Foreclosures Source: Register of Deeds 1,400 1,300 1,200 1,100 1, Projected Redeemed Properties Year # of Foreclosed Properties % of Redeemed Properties 5% 4% 5% 9% 10% 12% 13% 8% 12% 5%

24 Register of Deeds Revenue $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Budget 2017 Projected 2018 Projected Transfer Tax Recordings

25 Revenue By Court $5,000,000 $4,500,000 $4,000,000 $3,500,000 $639,797 $11,837 $237,957 $210,849 $675,848 $13,320 $197,660 $205,815 $615,563 $13,041 $267,088 $212,894 $638,480 $627,600 $628,600 $12,500 $12,500 $12,500 $239,909 $261,169 $263,269 $209,987 $212,179 $211,179 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $3,447,141 $3,080,845 $3,220,175 $3,067,772 $3,157,472 $3,157,472 $0 $289,107 $287,859 $252,841 $302,448 $273,948 $273, Budget 2017 Projected 2018 Projected Circuit Court District Court Probate Court Juvenile Court Guardianship Central Services

26 Courts Revenue Sources $4,000,000 $3,500,000 $3,000,000 $157,313 $255,499 $188,226 $241,685 $138,680 $227,268 $156,808 $270,100 $144,200 $146,200 $249,100 $250,100 $2,500,000 $2,000,000 $1,500,000 $3,327,928 $2,942,266 $3,110,240 $2,936,260 $3,057,640 $3,053,860 $1,000,000 $500,000 $ Budget 2017 Projection 2018 Projection Charges for Service Attorney Fees Other Revenue

27 Courts - State Revenue Sources $1,000,000 $50,448 $43,428 $46,662 $56,000 $42,000 $42,000 $78,389 $58,792 $97,986 $78,389 $78,389 $78,389 $800,000 $368,539 $368,539 $368,539 $368,539 $368,539 $368,539 $600,000 $400,000 $604,684 $619,696 $592,226 $605,000 $605,000 $605,000 $200,000 $ Budget 2017 Projection 2018 Projection Court Equity Judges' Salary Juvenile CJO & 2 Assistants Other State Revenue

28 Sheriff/Law Enforcement - General Fund Revenue $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 $384,503 $126,952 $56,185 $200,158 $198,859 $176,007 $139,613 $91,726 $34,220 $64,601 $67,214 $66,532 $237,990 $52,350 $50, Bdgt 2017 Projected $247,031 $253,850 $65,000 $65,000 $40,650 $40, Projected Some key revenue lines having significant change from : DEA Overtime $30,743 Reimbursement $0 PBT Fee $3,495 $0 Charges For Services $17,871 $0 Documents & Information $29,522 $8,500 Motor Carrier Fines $3,463 $50 Township Contracts Spec. Event Security Other ThanTwnshps or Spec Events

29 Jail General Fund Revenue $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 $300,000 $0 $0 $808,431 $690,543 $0 $199,902 $624,879 $748, Budget $1,449,000 $1,335,000 $661,931 $630,950 $596,500 $555, Projected Excluding Marshal Rev. Marshal Rev. (Rent & Transp) $1,449, Projected Some key revenue lines with significant change from : Parole MDOC Parole Detainers MDOC Conveying Convicts Fingerprinting - Court Order Charges For Services Reimb. - MDOC Div Felon Reimb. - Inmate Lodging Reimb. - Work Release Reimb. - Wk Rel- Padlock Reimb. - Benefit Fund Civil Process Service Fee Other Revenue - Phone Comm $43,505 $31,000 $2,405 $2,000 $13,755 $0 $1,566 $45,000 $124,875 $130,000 $143,332 $92,500 $59,211 $0 $6,997 $0 $5,996 $0 $127,518 $30,000 $204,785 $190,000

30 Drain Total *SESC Revenue & Permits $350,000 SESC Total Revenue by Year SESC Total Permits Issued by Year 3,500 $300,000 3,000 $250,000 2,500 R e v e n u e $200,000 $150,000 $100,000 $50,000 $0 2,000 1,500 1, P e r m i t s I s s u e d *Soil Erosion Sedimentation Control

31 Drain Wages & Fringes Payback $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Budget Crew W & F Reimb Admin & Wages Reimb 2017 Projection 2018 Projection

32 Total Revenue Impact GF Revenue Source 2015 Actual 2016 Revised 2017 Projected % Change 2018 Projected Total Taxes $26,993,969 $26,945,000 $27,312, % $27,861,000 Total Fines & Forfeitures $322,618 $330,000 $355, % $355,050 Total License & Permits $460,077 $405,600 $423, % $424,355 Total Charges For Service $6,176,765 $5,807,029 $5,996, % $6,072,758 Total Rental Income $751,222 $1,355,280 $1,469, % $1,469,490 Total Interest $249,765 $218,500 $318, % $318,300 Total Other Revenue $2,755,899 $2,659,101 $2,633, % $2,623,158 Total Federal Sources $22,056 $20,000 $21, % $21,000 Total State Sources $5,740,435 $5,217,676 $5,242, % $5,242,946 Total Contributions From Local Units $9,791 $29,043 $28, % $28,100 Total Transfers In $1,273,919 $445,325 $366, % $372,248 TOTAL GENERAL FUND $44,756,517 $43,432,554 $44,166, % $44,788,405