General Government Budget Overview. Budget Process Year 1 Prepare complete budget document for...
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Transcript of General Government Budget Overview. Budget Process Year 1 Prepare complete budget document for...
General GovernmentBudget Overview
Budget Process
Year 1 Prepare complete budget document for years one
and two Adopt budget for year one and set millage rate Approve year two plan
Year 2 Adjustments to the plan Set tentative millage rate Adopt year two budget
General Fund
Accounts for those resources and their uses traditionally associated with government
Funded by general revenues including property taxes, licenses and permits, fines, utility taxes, GRU transfers, sales tax and state revenue sharing
Includes expenditures for all departments providing government services
Expenditures are not specifically tied to revenue sources
General Fund Revenues
Four revenue sources make up over 75% of General Fund revenue General Fund transfer Property tax Utility Tax Intergovernmental revenue
Growth rate of these revenues over past years declining or flat
Starting to see uptick in total revenue
• 4
Utility Transfer32%
Property Taxes23%
Utility Taxes9%
Intergovernmental12%
Fire Assessment5%
Charges for Services9%
Other4%
Other Taxes6%
FY16 Budget $108.6 million
General Fund Revenue
Utility Transfer
Proxy for what GRU would pay if they were private utility
Property tax Franchise fee Return on investment to stockholders
Single largest General Fund revenue source, approximately 1/3 of total budget
FY15 New Transfer Formula Base equals FY14 GFT level as determined by prior GFT formula Growth @ 1.5% per year GFT reduced by biomass plant property tax revenue received A decrease of more than $3 million
Property Tax
Second largest General Fund revenue source at 23% of budget
Gainesville faces unique challenges to ad valorem revenue generation
High percentage of government and public education owned property creates tax base with the lowest percentage of taxable property in state
Property Taxes
Millage Rate Tax rate set by the taxing authority each year Rate per $1,000 value FY16 rate is 4.5079
Property Taxes
Taxable Value Determined by the Property Appraiser Various exemptions
Up to $50,000 - Homestead Exemption $25,000 – Senior Low Income Homestead Exemption $500 - Widows/Widowers, Disability and Blind Persons $5,000 - Veteran Disability
Portability Ability of homeowners to transfer their Save
Our Homes benefit up to $500,000 to a new homestead
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY163.00
3.20
3.40
3.60
3.80
4.00
4.20
4.40
4.60
4.80
5.00
5.20
5.40
5.60
5.80
6.00
3.56
3.81
4.34
4.97
5.63 5.67
5.89
5.61
5.41
5.17 5.18
5.655.79
Trend in Taxable Property Value (in billions)
Taxable Property Value
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20163.80
4.00
4.20
4.40
4.60
4.80
5.00 4.9416 4.9416 4.9416
4.8509
4.2544 4.2544
4.3963
4.2544 4.2544
4.4946
4.5784.5079 4.5079
Trend in Millage Rates
Millage Rates
Taxable Property
Miami BeachClearwater
MiramarFt Lauderdale
West Palm BeachCoral Springs
Cape CoralPort St lucieHollywood
LakelandPembroke Pines
TallahasseeGainesville
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00
78.6678.12
76.8674.6874.35
72.6371.50
70.2969.83
68.5066.39
54.4540.27
Peer City % of Taxable Property
Utility Tax
Revenues are generated through taxes levied on electric, water, and natural gas utility customers who reside within City’s corporate limits
Traditionally a function of three variables: number of customers, consumption per customer, and price
• 13
Utility Tax
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Budget
0
2
4
6
8
10
12
7.83
9.24 9.42
10.7411.16
10.77 10.7810.41
10.02 10.26
Utility Tax Revenue Budget (millions)
Intergovernmental Revenues
Account for 12% or $12.6M of revenue budget Half Cent Sales Tax and State Revenue Sharing is $10.2M
Dramatically effected by recession FY09-FY13 are approximately $6.10M or 12.4% less than
FY04-FY08 FY18 is when we return to same level as our peak in FY06
Recovery is beginning and projections include about 3% growth each year based on a combination of population growth and CPI growth
Fire Assessment
Implemented in FY11 and must be approved every year through separate resolution
$78 per factored fire protection unit $5.4 million in revenue each year Starting in FY16, the City will pay the fire
assessment on behalf of religious and charitable organizations ~ $120,000
General Fund Expenditures
General Fund Expenditures
General Government service delivery intensive organization
Almost 60% of expenditures are personal services
More than 50% of expenditure budget goes to Public Safety
General Fund Expenditure Budget
15.15%
51.44%
0.17%
11.00%
0.43%
0.13%
6.79%
14.88%
FY2016 General FundUses by Function
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Cultural & Recreation
Transfers/Cont.
General Fund Expenditures
From FY08-FY12, cuts to General Fund budget totaled $15M
$9.5M in departmental cuts $5.6M in city-wide cuts and organizational efficiencies 81 Full Time Equivalent position reductions
FY13-14 Relatively stable Implemented Pension reform
FY15 - another $2.2M in expenditure reductions 13 Full Time equivalent position reductions No raises budgeted for employees
General Fund Expenditures
FY16 Added some new programs and pilot programs into
budget including: New service level for RTS operations Development Services Center project Bike Share Program Sweetwater Wetlands Park
Questions