Transcript Florida Government Finance Officers Association

Florida Government Finance
Officers Association
Budgeting Basics
February 19, 2015
Michael D. Perry, CGFO
Budget Officer
City of Tampa
Agenda
• The Budget Office
• Budget Cycle
Planning for the Next Budget Cycle
Monitoring Current Year Activities
Budget Instructions
Department Budget Preparation
Budget Department’s Review of Submitted Budget
2
Agenda
Capital Improvement Budget
Publishing the Budget Document
Presentations to Legislative Body
Truth in Millage Process
Non-Ad Valorem Hearing Process
After Action Review
• Budget Book versus CAFR
• Odds & Ends
3
The Budget Office
• Each governmental agency has established
and organized their budget office to meet
their needs
• Vary in size and composition
Centralized budget office with all of the
organization’s analysts assigned
Central core budget office with departmental
analysts
Budget function integrated within the finance
department/office
4
The Budget Office
• Budgeting is a management function
• Budget Office’s function:
Analyze historical trends to better forecast
current and future financial outlook
Ensure the organization’s long-term financial
health
Prepare reports and review financial
transactions
Ensure compliance with GAAP and GASB
5
Planning for the Next Budget Cycle
• Preparing the budgeting system
Technology department should be involved
Format/prepare template for new budget year
Prior years financial data
Adopted/current budget
Capital improvement budget
• Personnel data
Validating data
Current information correct (pay grade, salary,
salary date, step, name, benefit information)
6
Planning for the Next Budget Cycle
• Revenue projections
State revenue estimating conferences –
edr.state.fl.us
Local Government Financial Information
Handbook
Trend analysis
7
Planning for the Next Budget Cycle
• Major events/leading indicators that will
affect the upcoming budget
– Property taxes
– Legislation
– Health-care/pension costs
– Retirements/DROP
– Collective bargaining agreements/compensation
• Chief executive officer’s guidance
8
Monitoring Current Year Activities
• Report to chief
executive officer
• High level – major funds
and departments
• Identify problems and
potential solutions
• This year’s performance
effects next year’s
budget
MONTHLY BUDGET ANALYSIS
General Fund and Utility Tax Fund
CURRENT YEAR (BUDGET VS. PROJECTIONS)
Revenue Drivers:
For the month ending March 2014
100% Property Taxes
77%
Fines and Forefeits
96%
Other Taxes
77%
Miscellaneous Income
96%
Permits
95%
Utility Tax - Electric
100% Intergovernmental
98%
Utility Tax - Communication Svs
99%
100%
Utility Tax - Water
Charges for Services
Thresholds
Rev
Exp
Rev/Exp
Rev
Exp
>100%
<90%
90% - 100%
< 90%
> 100%
CURRENT YEAR (BUDGET VS. PROJECTIONS)
Expense Drivers:
98%
Salaries
93%
General Employees Pension
111% Overtime
94%
Electric
111% Other
Pay
94%
Fuel
97%
Other
Benefits
97%
Other Operating
99%
Fire & Police Pension
Thresholds
Rev
Exp
Rev/Exp
Rev
Exp
>100%
<90%
90% - 100%
< 90%
> 100%
9
Monitoring Current Year Activities
Reports to departments
 Current year budget and
actuals
 Budget analyst’s year-end
projections
MONTHLY BUDGET ANALYSIS
Water Department
CURRENT YEAR (Budget VS.
Projections)
For the month ending
March 2014
Revenue
Drivers:
Total revenues are currently anticipated to be under the budgeted amount by
approximately 2% due to combined effects of three month watering restrictions that
ended in March 2014 and higher than normal rainfall reducing water demand.
100%
Total Personnel Costs
Personnel costs are currently anticipated to remain within budget. Actual expenses
are 49% of the annual budgeted amount.
95%
Total Operating Costs
Operating costs are projected at approximately 95% of budget with anticipated
savings in Tampa Bay Water contractual services and chemical usage due to low
water demand through March.
100%
Total Capital Outlay Costs
Total expenses are currently anticipated to remain within budget. Actual expenses
are 38% of the annual budgeted amount.
Expenditure
Drivers:
 Easy to read and
understand
 Discuss/identifies variances,
issues to watch
Total Revenues
98%
Thresholds
Rev
>100%
Exp
Rev/Exp
Rev
Exp
<90%
90% 100%
< 90%
> 100%
Plan:
The Water Department and Budget Office will continue to monitor revenues and expenses throughout FY2014 with
specific focus on water sales, personnel, Tampa Bay Water contract, electricity, repairs and maintenance, and
chemicals.
Department:
The department is in agreement.
10
Monitoring Current Year Activities
Water Sales Revenue
Personnel
(In Thousands)
(In Thousands)
120,000
30,000
90,000
20,000
60,000
10,000
30,000
0
0
FY10
FY11
FY12
FY13
FY 14
Proj
0
0
0
0
51,305
Estimate
Actual
67,693
81,949
93,126
87,550
37,670
Budget
76,115
75,759
82,534
83,215
90,650
Estimate
FY10
FY11
FY12
FY13
FY 14
Proj
0
0
0
0
9,124
Actual
19,172
16,274
16,979
17,414
8,893
Budget
19,432
16,608
16,670
17,352
18,101
11
Monitoring Current Year Activities
Operating
Capital Outlay
(In Thousands)
(In Thousands)
60,000
1,800
1,600
50,000
1,400
40,000
1,200
1,000
30,000
800
20,000
600
400
10,000
200
0
0
FY10
FY11
FY12
FY13
FY 14
Proj
0
0
0
0
27,350
Estimate
Actual
35,206
37,833
38,850
39,661
16,678
Budget
48,779
43,232
45,639
47,629
46,140
Estimate
FY10
FY11
FY12
FY13
FY 14
Proj
0
0
0
0
971
Actual
984
767
671
1,317
590
Budget
989
959
916
1,005
1,560
12
Monitoring Current Year Activities
Category
Charges for
Services
Account
Account Description
343301
343302
343303
343304
343305
343306
343307
343308
343309
343310
343311
343312
343313
343315
343316
343318
343319
343320
343321
Water Sales--Wcrwsa--N Blvd
Water Sales
Hydrant Rental-City
Sale of Water Fr Hydrants
Hydrants and Fire Line-Billing
Rental of Meters
Water Meter Test
TBW Pass Through
Other Water Services
Bad Debt Collections-Water
Mdse Jobbing & Contracting
Connection Fees-Meters
Installation Charges-Meters
Connection Fees-Fire Lines
Installation Charges-Fire Lines
Water Application Fees
Inspection Fees-Fire Lines
Inspection Fees-Main Extension
Application Fee-Der Permit
Charges From Wastewater For Meter
Srvc
Reclaimed Water Water Usage
Reclaimed Water Meter Install Fee
Reclaimed Water Connection Fee
Reclaimed Water Relocation Fee
Reclaimed Water Water Application
Fees
Reclaimed Water Inspection Fee
343322
343324
343325
343326
343327
343328
343329
Charges for Services Total
Budget
Encumbrance
Actual
Balance
(1,275,000)
(90,650,000)
(425,000)
(100,000)
(550,000)
(55,000)
(1,820,000)
(185,000)
(36,000)
(1,120,000)
(650,000)
(345,000)
(10,000)
(70,000)
(40,000)
(10,000)
(7,000)
-
(529,414)
(37,669,947)
(55,224)
(339,398)
(32,552)
30,356
(95,511)
(6,300)
(471,215)
(264,161)
(237,487)
(12,568)
(31,921)
(27,149)
(8,709)
(1,921)
(745,586)
(52,980,053)
(425,000)
(44,776)
(210,602)
(22,448)
(1,850,356)
(89,489)
(29,700)
(648,785)
(385,839)
(107,513)
2,568
(38,079)
(12,851)
(1,291)
(5,079)
(400,000)
(1,700,000)
(35,000)
(2,000)
(500)
-
(708,424)
(9,769)
(510)
(500)
(500)
(99,486,500)
-
(229)
(40,472,054)
Burn Rate.
41.52%
41.56%
0.00%
55.22%
61.71%
59.19%
Projected
Projected %.
112.39%
98.15%
100.00%
102.00%
114.55%
101.82%
51.63%
17.50%
42.07%
40.64%
68.84%
125.68%
45.60%
67.87%
87.09%
27.44%
(1,433,000)
(88,975,220)
(425,000)
(102,000)
(630,000)
(56,000)
(100)
(1,044,800)
(193,000)
(15,450)
(1,010,000)
(586,000)
(479,000)
(10,000)
(69,000)
(60,000)
(7,000)
(1,500)
(400,000)
(991,576)
(25,231)
(2,000)
10
0.00%
41.67%
27.91%
0.00%
102.00%
(400,000)
(1,565,000)
(19,000)
(2,000)
(1,000)
100.00%
92.06%
54.29%
100.00%
200.00%
(271)
(500)
(59,014,446)
45.80%
0.00%
40.68%
(300)
(500)
(97,084,870)
60.00%
100.00%
97.59%
-1.67%
57.41%
104.32%
42.92%
90.18%
90.15%
138.84%
100.00%
98.57%
150.00%
70.00%
21.43%
13
Monitoring Current Year Activities
Category
Account
Account Description
Personnel
512000
512002
512003
512006
514000
515003
516000
517000
521000
521001
522000
523000
523001
523002
523003
524000
525000
Regular Salaries and Wages
Terminal Leave
Longevity Awards
Floating Holiday
Overtime
Sick & Annual Leave Accrual
Compensated Annual Leave
Compensated Sick Leave
Fica Taxes
1.45% Medicare Match
Retirement Contributions
Life Insurance
Accidental D&D Insurance
Employee Health Insurance
Long-Term Disability Insurance
Workers? Compensation
Unemployment Compensation
Personnel Services and Benefits
Budget Reserve
529999
Personnel Total
Budget
Encumbrance
Actual
Balance
Burn Rate.
10,519,210
82,300
189,787
45,005
781,000
694,775
416,862
696,918
163,643
1,966,062
34,118
6,611
1,802,498
10,490
800,803
39,884
-
5,061,888
43,452
34,896
11,736
418,185
352,858
265,143
346,198
81,234
995,136
14,361
3,419
863,456
5,313
400,402
13,599
5,457,322
38,848
154,891
33,269
362,815
341,917
151,719
350,720
82,409
970,926
19,757
3,192
939,042
5,177
400,401
26,285
48.12%
52.80%
18.39%
26.08%
53.54%
(149,000)
18,100,966
-
(17,966)
8,893,310
(131,034)
9,207,656
Projected
Projected %.
98.52%
100.00%
100.00%
71.19%
95.39%
50.79%
63.60%
49.68%
49.64%
50.62%
42.09%
51.72%
47.90%
50.65%
50.00%
34.10%
10,363,342
82,300
189,787
32,037
745,000
574,572
576,632
696,612
163,192
1,976,892
28,892
6,879
1,751,940
10,810
800,803
17,207
12.06%
49.13%
18,016,897
0.00%
99.54%
82.70%
138.33%
99.96%
99.72%
100.55%
84.68%
104.05%
97.20%
103.05%
100.00%
43.14%
14
Budget Instructions
• Budget calendar
• Management instructions for preparation and
submission of budget requests
 Target budgets
 Budget reduction scenarios
 Requested budget increases
• Technical instructions
• Frequently Asked Questions – why do we prepare the
budget a certain way
15
Departmental Budget Preparation
Departmental narrative
information
 Vision
 Mission
 Goals & Objectives
 Additional initiatives and
information
Department Name: Wastewater
DEPARTMENT WEBSITE: http://www.tampagov.net/dept_wastewater/
VISION AND MISSION:
The Wastewater Department's vision is to become a world-class utility while
protecting the environment. We will operate in a cost-effective manner and
continually improve our work practices. The mission is to provide outstanding
wastewater services to our customers while protecting public health and the
environment.
GOALS AND OBJECTIVES:
The Wastewater Department's goal is to provide complete and cost-effective service
and to respond rapidly to expanding service requirements. To achieve its goal, the
Department's primary objectives include:
• Development, tracking, and reporting of specific, measurable, and relevant
performance metrics;
• Implementation of an effective and efficient asset management program;
• Expansion of cross-training efforts amongst multi-skilled workforce
technicians;
• Improving internal and external communication through the use of modern
technologies; and
• Rehabilitation and/or replacement of facilities as necessary to maximize
reliability and minimize operating costs.
CURRENT OPERATIONS AND INITIATIVES:
In FY2015, the Department will continue with the following initiatives in support of
its primary objectives:
• Complete design, award contracts, and complete construction for
rehabilitation of the Krause and Louisiana Pump Stations;
• Design and award additional construction contracts to continue with
Department's collection system renewal and replacement program to repair
and replace deteriorated force mains and gravity sewers located throughout
the collection system; and
• Complete the construction for the replacement of the Orient Road force main.
16
Departmental Budget Preparation
• Link performance
measures to strategic
outcomes
• City of Tampa Strategic
outcomes:
 Changing Economic DNA
• Comprehensive plan
 Strong Neighborhoods
• Neighborhood plans
 Safe Streets
• Developer initiatives
 Efficient Government
• Other opportunities
• Neighborhood Plans
 InVision Center City Plan
 West River Area Plan
17
Departmental Budget Preparation
Performance Measures
 Linked to organization’s strategic plans
 Measures effectiveness, efficiency, and quantity
CITY STRATEGIC PRIORITY:
􅎖Changing Tampa's Economic DNA
􀜆Strengthen our Neighborhoods
􀜆Keeping our Streets Safe
􀜆Effective & Efficient Government
Performance Measures
Non-Revenue Producing Water (%)
Reclaimed Water Demand (mgd)
Call Center - Average Call Wait Time (minute:seconds)
Call Center - Calls Abandoned (%)
Meter Reading Accuracy (%)
Hydrants Inspected (%)
Actual
FY2013
9.6
3.31
Projected
FY2014
9.5
3.21
Estimated
FY2015
9.5
3.4
1:51
10.4
99.7
100
1:50
9.0
99.8
100
1:45
8.0
99.8
100
18
Departmental Budget Preparation
• Outcomes versus inputs
• Presents case for budget request
To administrators and chief executive officer
Tie to performance outcomes
Detailed information at the account level to
support revenue estimates and expenditure
requests
• Non-Department Budget
• Debt Service Budget
19
Departmental Budget Preparation
Inputs
1. Reduction in parking
fund
Outcomes
1. Time to empty garage
following performance
arts center program –
90 minutes
2. Increase staff for
project management
office
2. Increase in the number
and scope of city’s
capital improvement
program
20
Capital Improvement Program
• CIP is part of the longrange planning system
• Guided by
comprehensive plan
and development plans
• Available funding
21
Capital Improvement Program
• Usually five years in scope
• Incorporate the needs/goals of long-range plans
Comprehensive plan/Comprehensive Improvement
Element (CIE)
Neighborhood plans/initiatives
• Replacing older infrastructure or expand for
growth
22
Capital Improvement Program
• Understand limitations
and restrictions of
funding sources
• Local Government
Financial Information
Handbook
 Communications Services Tax
 Local Business Tax
 Local Government Infrastructure
Surtax
 Fuel Taxes
 Local Revenues
 Impact Fees
 Water/Wastewater/Parking/Solid
Waste rates
 Tourist Development Tax
 Grants
 Debt Proceeds
23
Capital Improvement Program
Changing the Community
Changes the community’s
fabric
Understand how projects
are constructed – site visits
24
Capital Improvement Program
Changing the Community
Before
40th Street Segment Before Construction
After
40th Street Segment After Construction
25
Capital Improvement Program
Capital Cash Flow Model
Ensure that each revenue source is balanced for
each year of the CIP
FY2015
REVENUES
Starting Cash Balance
Special Revenue - Fund Balance
Capital Construction - Fund Balance
FY2016
FY2017
FY2018
FY2019
$
$
$
- $
2,136,033
397,534
2,169,567 $
1,805,567 $
31,567 $
506,567
$
$
500,000 $
3,033,567 $
500,000 $
2,669,567 $
500,000 $
2,305,567 $
500,000 $
531,567 $
500,000
1,006,567
$
$
15,000 $
10,000 $
15,000 $
10,000 $
15,000 $
10,000 $
15,000 $
10,000 $
15,000
10,000
$
25,000 $
25,000 $
25,000 $
25,000 $
25,000
$
839,000 $
839,000 $
2,249,000 $
- $
-
$
839,000 $
839,000 $
2,249,000 $
- $
-
TOTAL EXPENDITURES
$
864,000 $
864,000 $
2,274,000 $
25,000 $
25,000
ENDING FUND BALANCE
$
2,169,567 $
1,805,567 $
31,567 $
506,567 $
981,567
Impact Fees Collected
TOTAL REVENUE
EXPENDITURES
Transfers:
Transfer To Hartline - Impact Fee Contribution
2% Admin Fee (to General Fund/Transp. Div)
TOTAL TRANSFERS
Capital Projects:
Westshore Blvd at Gandy Blvd. Intersection Improvements
Traffic Signal Westshore Blvd. & Interbay Blvd.
TOTAL CIPs
26
Capital Improvement Program
Capital Cash Flow Model
Special Revenue Fund Balance
Capital Project Fund Balance
Estimated Revenue
Interest
30200 CIT
30600 LOGT
FY2015
FY2015
$
3,546,000 $
$
$
TOTAL REVENUE $
Transfer to Hartline - Purple Line
Transfer to Hartline - Impact Fee Contribution GF
2% Admin Fee - Impact Fees
Other Reservations
Transfer to Other Funds
Vehicle Replacement
Debt Service (Estimate) from below
Projected CIPs from below
$
$
$
$
$
$
$
$
30509
30508 Interbay
30510 Central 30511 Central 30512 North
Westshore
Transp. Impact
Business Trans.
East Trans.
Central Trans.
Trans. Impact
Fee
Impact Fee
Impact Fee
Impact Fee
Fee
FY2015
FY2015
FY2015
FY2015
FY2015
30513
University
North Trans.
Impact Fee
30400 FDOT
FY2015
FY2015
Grants/
Other
31351 CP 15
Debt
FY2015
FY2015
15,643,255 $
250,000 $
3,998,086 $
$
9,933,036 $
900,000
2,136,033 $
397,534 $
500,000 $
6,387,605 $
1,594,459 $
500,000 $
302,231 $
11,866 $
1,500 $
2,549,433 $
25,338 $
150,000 $
7,535 $
47,370 $
10,000 $
(646,041) $
345,036 $
750,000 $
$
1,156,750
-
$
$
$
$
$
$
6,409,000 $
-
29,500,000
19,439,255 $
14,831,122 $
3,033,567 $
8,482,064 $
315,597 $
2,724,771 $
64,905 $
448,995 $
1,156,750 $
6,409,000 $
29,500,000
15,000
10,000
3,163,750
150
30
315,417
4,500
3,000
1,480,000
1,156,750
6,409,000
$
$
$
$
$
$
$
$
29,500,000
29,500,000
346,000
4,000,000
4,949,407
8,251,000
$
$
$
$
200,000
-
$
$
$
$
$
$
$
$
$
$
12,423,358 $
15,000
10,000
839,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
TOTAL LIABILITY $
17,546,407 $
12,623,358 $
864,000 $
3,188,750 $
315,597 $
1,487,500 $
500 $
37,500 $
1,156,750 $
6,409,000 $
ENDING FUND BALANCE $
1,892,848 $
2,207,764 $
2,169,567 $
5,293,314 $
-
1,237,271 $
64,405 $
411,495 $
-
-
$
$
$
$
$
$
$
$
$
300
200
-
$
$
$
$
$
$
$
$
22,500
15,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
27
Capital Improvement Program
Capital Cash Flow Model
Total Project Cost
Design
Right of Way/Land
Construction
Construction Engineering
Project Management
Other
Equipment
Public Art
FY2015
FY2016
FY2017
FY2018
Total Project
Project Costs Revenue A Revenue B Revenue A Revenue B Revenue A Revenue B Revenue A Revenue B
Funding
$12,640,000 $1,080,000
$0 $2,710,000 $2,830,000 $3,060,000 $1,190,000
$90,000 $1,480,000 $12,440,000
$1,170,000
$930,000
$240,000
$1,170,000
$0
$10,420,000
$2,500,000 $2,500,000 $3,000,000 $1,000,000
$1,420,000 $10,420,000
$0
$540,000
$60,000
$90,000
$90,000
$60,000
$90,000
$90,000
$60,000
$540,000
$310,000
$90,000
$120,000
$100,000
$310,000
$0
$200,000
$0
Unfunded
$200,000
$0
$0
$0
$0
$0
$0
$0
$200,000
28
Capital Improvement Program
Sources and Use Statement
• Project specific
• One page briefing tool
that summarizes all
revenues and project
funding requirements
City of Tampa
Budget Office
Perry Harvey Park Capital Budget
Sources and Uses Statement (Version 3)
SOURCES:
Community Investment Tax - Current
Community Investment Tax - FY2015 SAF
HUD Choice Grant - FY2014 FinRes
NEA Grant - FY2014 FinRes
CDBG Funds
TOTAL SOURCES:
USES:
Design and Construction:
Bro Bowl laser survey and grading
Plans and Specs
Phase 1
Phase 2
Construction
Total Design and Construction
Project overhead @ 8% (excluding grant funds)
Contract Administration inspections
Printing and bid advertising
Permit fees
Art in Public Places (1% of Design and Construction)
Available Funding:
$
3,800,000
$
2,000,000
2,000,000
100,000
500,000
$
8,400,000
Requirements:
$
$
$
216,000
583,532
6,948,739
7,748,271
$
304,000
187,000
0
5,000
50,000
546,000
TOTAL USES:
$
8,294,271
Total Overage/Shortfall
$
105,729
29
Publishing the Budget Document
• Presentation matters
• Follow the guidelines, but it is your document
• GFOA Distinguished Budget Award Program
 Policy document
 Financial plan
 Operations guide
 Communications device
 Reviewed by a three person panel of volunteers with
government budgeting experience
• Building a Better Budget Document, John Fishbein
30
Publishing the Budget Document
Primary users of the budget document
Elected officials
Supervisors
Public
Rating agencies
31
Presentation to Legislative Bodies
• How and when you present to the legislative
bodies is a local practice
• Workshops allows for exchange of information
• Allows legislative bodies to ask questions and
provide guidance
• Chief executive officer’s budget presentation
• TRIM required public hearings
32
Truth in Millage Process
• Most important process of the budget!!!!
• E-Trim
33
What is TRIM?
• Purpose is to provide taxpayers transparency
in how local taxing authorities propose and
approve millage rates as part of the taxing
authorities’ budget adoption process.
• Determine whether there is a tax increase
proposed (calculate the rolled-back rate)
34
TRIM Key Processes
• June 1- Estimate; July 1 – Preliminary Tax Roll
• TRIM Notice (forms DR-420, DR-420MM-P, DR420TIF forms)
• Budget Ordinance & Resolutions
• Proper Notices and Advertisements
• Public Hearings
• DR-422 (before/after Value Adjustment Board)
• TRIM Compliance Package
35
TRIM Calendar
• On or before June 1st - Property Appraiser
provides estimated taxable values to local
taxing authorities (not technically part of
TRIM)
• July 1 – 1st day of calendar – Property
Appraiser provides the Preliminary Tax Roll to
all taxing bodies on Form DR-420
36
TRIM Calendar (cont.)
• By day 35 (August 4), taxing bodies must file
with the Property Appraiser (PA) and the tax
collector the tentative millage rate on form
DR-420 as well as forms DR-420TIF and DR420MM-P (Also must provide tentative 1st
public hearing date on DR-420)
• Notice of Proposed Taxes (TRIM notice)is
distributed by the Property Appraiser no later
than day 55 (August 24)
37
TRIM Calendar (cont.)
• Between day 65 (September 3) and day 80
(September 18), taxing authority must hold its
first public hearing
• Within 15 days of holding the first public
hearing, the taxing authority must publish an
advertisement to adopt the final millage and
budget
38
TRIM Calendar (cont.)
• Second public hearing must be held between
2 and 5 days after the advertisement has been
published
• Within 3 days after the second public hearing,
taxing authority must file its millage rate
ordinance with the property appraiser and the
tax collector
39
TRIM Calendar (cont.)
• End of September or early October - Taxing
authorities receive extended roll taxable
values from PA (DR-422). Taxing authorities
have three days to determine if they will
adjust their millage rates administratively
• Within 30 days after the second public
hearing, taxing authority files certification
(DR-487) and required documentation with
DOR
40
TRIM Calendar (cont.)
• Within 60 days after the second public
hearing, the DOR will indicate compliance or
non-compliance with the Statute
• After completion of Value Adjustment Board
hearings, Property Appraiser provides taxing
authorities with final taxable values
41
TRIM Calendar - Florida DOR
42
Budget Hearings
• Per F.S. 200.065, School Boards and Counties
have priority in selecting public hearing dates
• School Boards get first priority, Counties are
second
• No other taxing authority can hold its hearing on
the same date as the School Boards or Counties
• Hearings start after 5 p.m. (5:01 p.m. at the
earliest)
43
Budget Hearings (cont.)
• At both hearings, millage rate must be
discussed first before the Budget; increase
over RBR must be announced
• At the first public hearing, the millage rate can
be increased from the tentatively adopted
millage in July; however, would require a first
class mailing to all taxpayers
44
Budget Hearings (cont.)
• At the second public hearing, the millage rate
cannot be increased from the tentatively
adopted millage rate at the first public hearing
• The general public is allowed to speak before
the governing body can take any action of
adoption
• The millage must be adopted before the
budget can be adopted
45
Budget Hearings (cont.)
• No millage can be levied until the taxing
authority adopts a resolution or ordinance
• The following must be publicly announced at
the hearing before adopting the millage:
Name of the Taxing Authority
Rolled-back rate
Percentage of increase over the rolled-back rate
Millage to be levied
46
Budget Hearings (cont.)
“This is the First Public Hearing for the City of
Tampa FY2015 Budget. The proposed millage
rate is 5.7326 mills, which is 5.16% more than
the rolled back millage rate of 5.4514 mills.
Property tax funds are used to support the
General Fund operating budget of the City. This
Fund includes such Departments as Fire Rescue
and Police, Human Resources, Parks and
Recreation, and Public Works.”
47
Advertisement Requirements
• A Notice of Tax Increase ad is required if the
millage rate is greater than the rolled-back
rate
• A Notice of Budget Hearing ad is required if
the millage rate is equal to or less than the
rolled-back rate
• In either case, a Budget Summary
advertisement is required to be published
adjacent to the appropriate “Notice” ad
48
Notice of Proposed Tax Increase Ad
• Size requirements for the Notice of Proposed
Tax Increase ad
Full 1/4 page
Headline type of 18 point or larger
• May not be published in legal or classifieds
• Do not deviate from specified language (see
TRIM Manual on DOR website)
49
Notice of Proposed Tax Increase Ad
NOTICE OF PROPOSED TAX INCREASE
The City of Tampa has tentatively adopted a measure to increase its property tax levy.
Last year's property tax levy:
A. Initially proposed tax levy …………………………………………………….. $ 128,667,011
B. Less tax reductions due to Value Adjustment Board and
other assessment changes
$
351,535
C. …………………………………………………………….
Actual property tax levy ………………………………………………………. $ 128,315,476
This year's proposed tax levy …………………………………………….. $ 137,604,585
All concerned citizens are invited to attend a public hearing on the tax increase to be held on:
Wednesday, September 17, 2014
6:00 P.M.
At
City Council Chambers, 3rd Floor, City Hall
315 E. Kennedy Blvd., Tampa, Florida 33602
A FINAL DECISION on the proposed tax increase and the budget will be made at this hearing.
50
Notice of Budget Hearing Ad
• No specific size requirements
• May not be published in legal or classifieds
• Do not deviate from specified language
51
Budget Summary Ad
• No size requirements
• Must be published adjacent to the
appropriate “Notice” ad
• Basically shows flow of funds including reserves
available, revenues and expenditures, transfers,
yielding in effect a “Total Available” and a “Total
Appropriated”, including reserves
52
Budget Summary Ad (cont.)
• Include all budgeted revenues, expenditures and
reserves
Group by fund type (General, Special Revenue, etc.)
Group revenues and expenditures by major
classification
Exclude trust, agency, internal service funds, and bond
proceeds
• Must show ad valorem revenue at a level of 95% or
greater of the tax levy amount
• See Examples in TRIM Manual
53
Budget Summary Ad (cont.)
BUDGET SUMMARY
CITY OF TAMPA, FLORIDA - FISCAL YEAR 2014 - 2015
THE PROPOSED OPERATING BUDGET EXPENDITURES OF
THE CITY OF TAMPA ARE 8.0%
MORE THAN LAST YEAR'S TOTAL OPERATING EXPENDITURES
CASH BALANCES BROUGHT FORWARD
ESTIMATED REVENUES:
Taxes:
Ad Valorem (Millage per $1,000 - 5.7326)
Sales and Use Taxes
Licenses and Permits
Intergovernmental Revenue
Charges for Services
Fines and Forfeitures
Miscellaneous Revenues
Other Financing Sources
Total Revenues and Other Financing Sources
Total Estimated Revenues and Balances
EXPENDITURES/EXPENSES:
General Governmental Services
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Internal Services
Total Expenditures/Expenses
Reserves
Total Appropriated Expenditures and Reserves
GENERAL FUND
$
5,912,743
SPECIAL
REVENUE FUNDS
$
31,000,239
$
0
$
132,224,356
10,942,000
37,124,600
75,199,349
50,854,120
4,830,462
6,897,375
39,335,969
357,408,231
363,320,974
$
0
73,683,036
15,571,500
18,523,459
627,000
10,000
3,565,451
14,580,133
126,560,579
157,560,818
$
63,628,727
223,864,380
1,791,936
6,247,798
14,666,487
5,007,346
47,300,928
0
362,507,603
813,371
363,320,974
$
74,900,463
9,712,092
6,985,550
48,915,915
8,851,744
0
1,588,469
0
150,954,233
6,606,585
157,560,818
$
$
$
$
$
$
$
$
$
$
DEBT SERVICE
FUNDS
$
$
$
$
CAPITAL
PROJECTS FUNDS
$
6,182,741
$
0
166,000
0
0
0
0
0
36,894,894
37,060,894
37,060,894
$
0
16,743,255
0
7,281,750
45,000
0
600,000
47,988,978
72,658,983
78,841,724
$
37,060,894
0
0
0
0
0
0
0
37,060,894
0
37,060,894
$
17,585,407
0
21,125,000
27,867,469
0
300,000
9,771,000
0
76,648,876
2,192,848
78,841,724
$
$
$
$
$
$
$
$
$
ENTERPRISE
FUNDS
32,871,519
INTERNAL
SERVICE FUNDS
$
4,393,994
$
0
0
709,000
52,000
310,211,380
2,235,500
4,403,041
123,237,947
440,848,868
473,720,387
$
0
0
0
172,754
23,466,156
0
77,958,030
4,000,000
105,596,940
109,990,934
$
0
0
456,659,597
17,060,790
0
0
0
0
473,720,387
0
473,720,387
$
0
0
0
0
0
0
0
109,990,934
109,990,934
0
109,990,934
$
$
$
$
$
$
$
$
$
FIDUCIARY
FUNDS
616,208
$
0
20,243,425
0
0
0
0
247,170
0
20,490,595
21,106,803
$
402,619
0
0
0
20,704,184
0
0
0
21,106,803
0
21,106,803
$
$
$
$
$
TOTAL
80,977,444
132,224,356
121,777,716
53,405,100
101,229,312
385,203,656
7,075,962
93,671,067
266,037,921
1,160,625,090
1,241,602,534
193,578,110
233,576,472
486,562,083
100,091,972
44,222,415
5,307,346
58,660,397
109,990,934
1,231,989,730
9,612,804
1,241,602,534
THE TENTATIVE ADOPTED AND/OR FINAL BUDGETS ARE ON FILE IN THE OFFICE OF THE ABOVE MENTIONED TAXING AUTHORITY AS A PUBLIC RECORD OR ON THE CITY'S WEBSITE AT WWW.TAMPAGOV.NET/BUDGET.
54
DOR TRIM Violations/Infractions
• DOR keeps track of violations or infractions
annually
• “Minor” infractions are noted with the letter
the taxing authority receives if the TRIM
package is “in compliance”
• Serious violations and how they may be
corrected are included in letter of noncompliance
55
Non-Compliance
If Department of Revenue review indicates noncompliance with maximum rates
• Determination within 30 days of submittal
deadline (30 days after adoption)
• Repeat hearing and advertisement process
• Notice includes “Previous Notice . . In Violation of
the Law”
• Revised millage adopted recertified with State
within 15 days of adoption; not sent to PA or TC
56
Uniform Method of Collection
(Non-Ad Ad Valorem Assessment)
• What is the Uniform Method of Levy,
Collection, and Enforcement - Statutory
process as provided in Florida Statutes
197.3632 for the levy, collection, and
enforcement of Non-Ad Valorem assessments
• What is a Non-Ad Valorem Assessment - An
assessment, which is not based upon value
and can become a lien against a homestead
57
Uniform Method of Collection
(Non-Ad Ad Valorem Assessment)
• What is a special district - A Special District is a
unit of special-purpose government operating
within a defined geographic boundary for a
specific purpose. They have limited and
specific powers.
58
Uniform Method of Collection
(Non-Ad Ad Valorem Assessment)
• How is a special district created - A special
district can be created by general law, special
act, local ordinance, or by rule of the
Governor or Cabinet to provide specialized
services not provided by units of generalpurpose government inclusive of
Municipalities and Counties.
59
Uniform Method of Collection
(Non-Ad Ad Valorem Assessment)
• Must hold public hearing to adopt the roll
between January 1 and September 15 if:
Non-ad valorem assessment is levied for the first
time
Non-ad valorem assessment is increased beyond
maximum rate authorized
Local government boundaries have changed
Purpose of the non-ad valorem assessment has
changed
60
Uniform Method of Collection
(Non-Ad Ad Valorem Assessment)
• At least 20 days prior to public hearing, public
must be noticed by first-class U.S. mail and by
publication in a newspaper of general
circulation within each county contained in
the boundaries of the local government
• By September 15 the chair or designee shall
certify a non-ad valorem roll to the tax
collector
61
After the Budget
Assist in the preparation of the year-end
financial reports and/or CAFR
• Budget to actuals – explain variances
• Review statements and notes
• Understand what is behind the numbers – ask for
the working papers
62
After Action Review
• After Action Review
 Good, bad, and ugly
 Expand on what went
right, fix what went
wrong
 Do better next year
 Hold management
accountable for
improvements
•
•
•
•
•
•
Agenda
8:30 am – Opening
8:45 am - 9:30 am Round 1
9:30 am – 9:45 am Break
9:45 am – 10:30 am Round 2
10:30 am – 11:15 am Report out
11:15 am – 11:30 am Final Comments
Round 1
Pre-Budget & Departmental Process
*Lead – Pullara
Vance, Reed, Lozo, Hobbs, Rice, Certain
Round 2
Revenue Projections
*Lead – Murphy
Carballa, Seth, Hobbs, Pullara
Reports and Publishing
*Lead – Waitman
Stanton, Murphy, Gobble, Herbert
Personnel Budgeting (HCP)
*Lead – Vance
King, Hardeman, Tran, Reed
Technology & System
*Lead – Seth
Hardeman, Carballa, Tran, King
CIP Process
*Lead – Stanton
Gobble, Herbert, Waitman, Lozo, Rice,
Certain
63
Budget Book and the CAFR
•
•
•
•
Consistent information between documents
Budget books is more narrative in nature
CAFR concentrates on schedules
My preference – don’t use account structure
numbers in the documents; use the names
64
Odds and End
• Blue Book (GAAFR)
Know it, use it
Separate fact from folklore
• Fiscal Transparency - Be aware of
requirements
Posting of budgets on web sites
Posting of budget amendments on web sites
65
Odds and End
Budget analyst
Pursue Certified Government Finance Officer
designation
Be inquisitive
Know you organization’s account structure
Master your organization’s systems (financial,
purchasing, budget)
Push the envelope, ask why not
66
Conclusion
• Building a Better Budget Document, John
Fishbein - http://gfoa.org/building-better-budgetdocument-second-edition
• Local Government Financial Information
Handbook - http://edr.state.fl.us/Content/localgovernment/reports/index.cfm#localgovernment
• Department of Revenue http://dor.myflorida.com/dor/property/cofficials/
• Any questions?
67