Transcript Slide 1

Budget Overview
General Government Finance
• Predicated on the concept of fund accounting
• Separates accounting of monies for purpose of
performing specific functions in accordance with
special regulations, restrictions or limitations
• Allows governments to demonstrate compliance with
these restrictions
General Government Finance
• Segregated into six fund types:
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General
Special Revenue
Capital projects
Debt Service
Proprietary
Fiduciary
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
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
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General Fund transfer
Property tax
Utility Tax
Intergovernmental revenue
• Growth rate of these revenues over past years
declining or flat
• Don’t predict increase in this growth rate in the
foreseeable future
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General Fund Revenues
4%
6%
Utility Transfer
9%
Property Taxes
33%
5%
Utility Taxes
Intergovernmental
Fire Assessment
11%
Charges for Services
9%
23%
Other
Other Taxes
Total FY15 Budget $106 million
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
35% of budget
• FY15 Transfer Formula
• Base equals FY14 GFT level as determined by prior GFT formula
methodology
• 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
• Recent legislative changes and economic downturn have
combined to both reduce this revenue stream and make it
more variable
• 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
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Tax rate set by the taxing authority each year
Voter approved millage for debt
Rate per $1000 value
FY15 rate is 4.5079
• Taxable Value
– Determined by the Property Appraiser
– Various exemptions
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Up to $25,000 - Homestead Exemption
$25,000 - Senior Homestead Exemption
$500 - Widows/Widowers, Disability and Blind Persons
$5,000 - Veteran Disability
Trend in Millage Rates
5
4.8
4.6
4.4
4.2
4
3.8
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Peer City % of Property Taxable
Gainesville
40.27
Tallahassee
54.45
Pembroke Pines
66.39
Lakeland
66.64
Hollywood
69.83
Coral Springs
71.71
Cape Coral
73.25
West Palm Beach
74.35
Ft Lauderdale
74.68
Miramar
76.86
Miami Beach
78.66
Port St Lucie
79.30
Clearwater
0.00
85.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
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
•15
Utility Tax Revenue Budget (millions)
12
11.16
10.77
10.74
10.78
10.41
10.02
10
9.24
9.42
7.83
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6
4
2
0
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
Intergovernmental Revenues
• Account for 11% or $11.7m of revenue budget
– Half Cent Sales Tax and State Revenue Sharing is $9.6m
• Dramatically effected by recession
– FY09-FY13 are approximately $6.10M or 12.4% less than FY04FY08
– 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
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
FY15 General Fund Budget
Public Safety
34,898,955 , 32%
53,413,569 , 50%
Non-discretionary Obligations
All Other
19,055,591 , 18%
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
Questions