County Government Funding & Options

County Government Funding & OptionsCentra In-ServiceMay 10, 2011

Notie Lansford, Extension EconomistProgram Leader, County Gov. Training Program, CTP

ObjectivesIdentify and Describe the “Funds”Discuss Ways to Acquire More

FundsDiscuss Some Ways to Use Funds

More EffectivelyKnow Enough “to be Dangerous”Identify Additional Resources

Know Your Funds & OptionsKnow enough to be dangerous!General FundHighway FundCash Funds, e.g.

◦ Treasurer’s Resale Property,◦ Clerk’s Lien Fee, ◦ Sheriff’s Service Fee, ◦ Sales Tax and Use Tax◦ Lodging Tax

Sinking Fund for DebtOthers, like County Health Dept.,

EMS District, Solid Waste Mgmt, County Library

County General Fund Revenue FY 2008-2010

Love $943,618 $1,300,498 38%Pushmataha $1,886,549 $2,721,889 44%Dewey $2,178,368 $3,489,741 60%

Average $6,127,058 $6,355,397 5%

CountyName FY 2008 FY 2010 Percent Change

Alfalfa $2,238,427 $1,673,639 -25%Haskell $3,107,612 $2,558,551 -18%Latimer $2,561,690 $2,124,246 -17%

County Highway Fund Revenue, FY 2008-2010CountyName Total Revenue Percent

2008 2010 Change Blaine $6,655,406.15 $2,872,556.88 -57%Beckham $6,823,918.48 $3,897,725.65 -43%Latimer $6,777,612.57 $3,944,353.95 -42%

Tulsa $10,588,279.67 $17,955,934.90 70%Carter $6,287,172.99 $11,210,146.88 78%Cimarron $3,480,008.91 $7,915,558.96 127%

Average $4,664,410 $4,541,671 -1%

County General FundHistorically, the fund paying for

most courthouse functions

Avg. FY ’04 Ad Valorem Levy

Sch. Building Fund6.11%

Sch. General Fund47.62%

Co. Ind. Development0.00%

Sch. S inking Fund13.89%

Vo-Tech General Fund9.94%

Vo-Tech Building Fund2.82%

Vo-Tech Sinking Fund0.02%

County Library1.87%

Co. General Fund12.17%

J C S inking Fund0.07%

J C General Fund0.54%

Co. S inking Fund0.31%

City S inking Fund1.16%

Co. Health Dept.2.44%

Emergency Med. Dist.1.07%

Emergency Med. S inking0.01%

12.17%

Sources of RevenueGeneral Fund1. Ad Valorem Taxes

A mill levy on tangible, taxable property.For example:

Fair Cash Value of a Home $ 80,000Assessment Ratio X .12Assessed Value $ 9,600less Homestead Exemption -1,000Net Assessed Value $ 8,600Tax Rate (80 mills) X 0.080Tax Due $ 688

General Fund Sources2. County Clerk Fees 28 O.S. § 32

◦For registration of deeds and various other instruments, such as leases, assignments, conveyances, plats, and mechanic’s liens.$ 8 for recording the first page$ 2 for recording each additional page$ 1 per page for furnishing hard copies

3. Interest on Investment; 68 § 348.1

General Fund Sources4. County Sales, Use, & Lodging Taxes

County Sales Tax◦ A maximum of 2%.

◦ Must be approved majority of local voters.

◦ For specified purpose(s).

◦ Applies to the same items as the state sales tax.

“Use Tax” may be added by resolution of county commissioners.

12

County Sales, Use, & Lodging Taxescontinued

County Lodging Tax◦ Counties of less than 200,000◦ Maximum of 5% on lodging rooms.◦ Approved by majority of voters.◦ For specified purpose.◦ General Fund or a cash Revolving Fund◦ Inapplicable within cities already levying a

lodging tax. ◦ Adopted in :

Blaine, Cimarron, Greer, Johnston, Love, Marshall, McCurtain, Osage, Pontotoc, Latimer

County Sales & Lodging Taxes

WOODWARD

AD

AI R

ALFA

LFA

ATOKA

BECKHAM

BLAINE

BRYAN

CANADIAN

CARTER

CH

ER

OK

EE

CHOCTAW

CIMARRON

CLEVELAND

COMANCHE

COTTON

CRAIG

CUSTER

DELAW

ARE

DEWEY

ELLIS

GARFIELD

GRADY

GRANT

GREER

HA

RM

ON

HARPER

JACKSON

JEFFERSON

KAY

KIOWA LATIMER

LOVE

MAYES

MURRAY

MUSKOGEE

NOBLE

NO

WATA

OKLAHOMA

OKMULGEE

OSAGE

OTTAWA

PAWNEE

PAYNE

PUSHMATAHA

ROGER MILLS

ROGERS

SEQUOYAH

STEPHENSTILLMAN

TULSA

WAGONER

WASHITA

WOODSW

AS

HIN

GTO

N

MARSHALL

MAJOR

KINGFISHER

BEAVER

TEXAS

LOGANCREEK

LINCOLN

OKFUSKEE

McINTOSHCADDO

MCCLAIN

GARVIN

SE

MIN

OLE

POTTAW

ATOM

IE

HU

GH

ES

PITTSBURG

HASKELL

LE FLOR

E

COAL

JOHNSTON

PONTOTOC

McCURTAIN

Lodging Tax Counties, 9

Sales & Use Tax, 67

Sales Tax only, 8

General Fund Sources5. Transfer PaymentsFrom State, To Counties

Motor Vehicle License & Registration Fees◦Excise Tax 68 O.S. 2000 § 2103 - …◦Annual Registration 47 O.S. 2000 §

1132 - …◦0.83% - County General Fund

General Fund Sources6. Reimbursements – “pass through”

Visual Inspection (Revaluation)The cost of the “program of visual inspection” is shared by all local jurisdictions collecting an ad valorem levy. Each jurisdiction’s share is proportional to its total levy the prior year. 68 O.S. §§ 2820, 2822-2823

General Fund Sources6. Reimbursements

District Attorney = County + State PortionThe county must provide the D.A. with office space; law library and legal subscriptions; funds for investigation, prosecution or defense of any action wherein the county is a party. 19 O.S. §§ 215.36 - 215.38

The state shall provide for all other expenses through the District Attorneys Council. However, the county pays these expenses and is reimbursed monthly.

General Fund Sources6. Reimbursements

Election Board“The salary and fringe benefits paid to each secretary shall be paid from county funds on a monthly basis and shall be reimbursed from funds appropriated by the Legislature …” 26 O.S. §§ 2-118 - 2-121

Variation Across the StateHeavy Dependence on Property

TaxHeavy Dependence on Sales TaxSales Tax Placement

◦General Fund and/or Cash FundDiverse Use of Sales Tax

◦100% Hospital or Jail◦Split 17 Different Ways

Roads, Rural Fire, Solid Waste, Fair, General, …

S. T. Cash Balance Carried Over

County Highway (Road) Fund

Gasoline Tax

29.0%

Special Fuels0.0%

Diesel Tax8.2%

Motor Vehicle Taxes26.7%

Gross Produc-tion Tax18.1%

All Other17.9%

Average County Highway Fund Revenue Sources,

FY 2007

Highway Fund, FY 2004

Hughes Grant Lincoln WagonerGross Production Tax 205,029 170,651 691,692 6,814 Diesel Tax 232,121 287,324 345,578 306,008 Gasoline Tax 853,186 1,183,133 1,307,966 1,075,458 Motor Vehicle Fees 787,776 1,135,400 1,125,915 954,095 Federal 728,624 - - 32,813 Total 3,015,919 2,941,485 4,616,451 3,227,479

Beginning Cash 891,594 410,499 408,636 1,283,412

Population 13,992 5,025 32,240 60,497Miles of County Roads 912.23 1,779.16 1,547.02 959.61

Highway Fund, FY 2004 per capita & per mile

Hughes Grant Lincoln WagonerGross Production Tax $15 $34 $21 $0Diesel Tax $17 $57 $11 $5Gasoline Tax $61 $235 $41 $18Motor Vehicle Fees $56 $226 $35 $16Federal $52 $0 $0 $1Total $216 $585 $143 $53

Beginning Cash $64 $82 $13 $21

Total per Mile of Road $3,306 $1,653 $2,984 $3,363

Cash Funds (Special Revenue Funds)Generally, funded from a fee or

limited number of feesGenerally, highly restricted as to

use.

e.g. Resale Property Fund – Funded from interest charged for late payment of taxes. Treasurer is to use it for collection of delinquent taxes.

1.85 cents for courthouse improvements, roads, sheriff, and general

Cash Funds, FY 2004

Hughes Grant Lincoln WagonerSheriff Service Fee 41,642 65,708 132,028 167,384 Resale Property 34,379 19,459 115,832 180,753 Co. Clerk Lien 23,583 2,724 11,414 107,191 Assessor Revolving 2,734 13,431 6,304 14,562 Sales Tax - 240,888 1,462,691 -

Sales Tax Notes: None 1.0 cent 1.0 cent Sales taxRural Fire Roads & bridges goes intoEMS Jail, Fire, Fair the Sheriff Senior Citizen General Fund

Econ. Dev.Em. Mgmt.Courthouse Imp.

How to Get More FundingTreasurer & Sheriff actively

involved in collecting delinquent taxes; “Personal Property Tax Sale Warrants”

EMS/Fire/Ambulance mill levy for county-wide ambulance service

Lodging, Use, and Sales TaxIncrease the Assessment

Percentage on Taxable PropertyInvestment policy

How to get more fundingTransfer of Funds if needed

to avoid paying interest on non-payable warrants

Tribal Joint Ventures◦Road and Bridge Projects◦Tribal Government Institute

REAP – Rural Economic Action Plan grants – e.g. OK Water Resources Bd.

CDBG – Community Development Block Grants – OK Dept of Commerce

Circuit Engineering Districts funding page

Ways to Save MoneySharing Resources

◦Equipment ◦Employees

Co-op Purchasing among ◦Departments

Paper; internet service; office supplies Purchasing in quantity – keep good consumable

inventories Blister (individuals wrapped) packs for

medications◦Counties

Pharmacy for Prisoners Medical supplies Joint road projects

Ways to Save MoneyEducation for Employees

◦Safety programs offered by ACCO◦Wellness programs offered by insurance company◦Employment/Management Programs with OSU

Insurance DeductiblesConserve Energy

Turn off computers/lights Energy efficient light bulbs

Labor Force Management◦Full Time vs. Part Time◦Contract for services

Ways to Save Money: Be informedLocal

◦ Communicate with each other Budgets are part of your everyday life

Meet to discuss budgets throughout the year Understand goals for officer; keep the dialog open Don’t assume the largest budget can take the largest cut

◦ Be involved with local economic development◦ Seek input of constituents

Legislative◦ Keep in touch with local legislators◦ Study the impact of pending legislation

State Associations/Government◦ Attend meeting◦ Learn from your counter parts in other counties◦ Utilize technical assistance with SA&I, OTC, OCES’s

County Training Program

ResourcesPublications:http://agecon.okstate.edu/faculty/publications_results.asp?page=1

Fact Sheets:1. Ad Valorem Taxes2. Duties & Responsibilities of Elected County Officials3. Duties & Responsibilities of Non-Elected County

Officials4. …

http://www.rd.okstate.edu/RDPublications.htm#D1.

Abstract of County Government General, Highway, and Special Revenue Funds in OK (Fiscal Year 2008-2009)

2. Summary - County Sales, Use, & Lodging Taxes, FY 09 3. "Oklahoma Ad Valorem Mill Levies, Fiscal Year 2009“

OCES CTP Training – http://agecon.okstate.edu/ctp/Courses, Handbooks, Technical Assistance

Other Sources of InformationOklahoma Tax Commission

◦http://www.oktax.state.ok.us/oktax/ Publications

State Auditor and Inspector◦http://www.sai.state.ok.us/

Audit ReportsCounty Training Program (CTP)

◦http://www.agecon.okstate.edu/ctp/ Budget Process, 2 day class Building Your Budget, 1 day class

CTP, OSU ContactsNotie Lansford, Extension Economist

◦ (405) 744-6555 or [email protected] Embree, Local Government Specialist

◦ (405) 744-9838 or [email protected] Rudin, Communications Specialist

◦ (405) 744-9812 or [email protected] Schieffer, Local Government Specialist

◦ (405) 744-9828 or [email protected] Spears, Local Government Specialist

◦ (918) 762-3253 or [email protected] Emerson, Local Government Specialist,

[email protected] Gloria Cook (405) 744-6160, [email protected]