January 14, 2015 Dawn Jindrich, Linn County Budget Director David Farmer, Scott County Budget Manager ISAC New County Officers School.

January 14, 2015Dawn Jindrich, Linn County Budget Director

David Farmer, Scott County Budget Manager

ISAC New County Officers School

Agenda

Services ProvidedFunding SourcesBudget ProcessQuestions

Budget Definition

Budget: A financial plan for a specified period of time (fiscal year) that matches all planned revenues and expenditures with various County services.

Expenditures

Can be categorized in different ways:Expenditure CategoryService AreaFundDepartment/Office

Classes of ExpendituresPersonnel Services

• Salaries• Benefits

Operations• Minor purchases• Services

Capital Outlay• Capital Asset Acquisitions

Service Areas Public Safety & Legal Services Physical Health & Social Services Mental Health, Intellectual & Developmental Disabilities County Environment and Education Roads & Transportation Government Services to Residents Administration Non-program Current Debt Service Capital Projects

Service Area Detail

Public Safety & Legal Law Enforcement Legal Services and Courts Emergency Services

Physical Health & Social Services Physical Health Services Services to Poor Programs Services to Military Veterans Children’s & Family Services

Service Area Detail

Mental Health, Intellectual & Developmental Disabilities Mental Illness Chronic Mental Illness Intellectual Disabilities Other Developmental Disabilities County Provided Case Management General Administration County Provided Case Management Brain Injury

Service Area Detail

County Environment & Education Conservation & Recreation Services Animal Control Planning & Development Educational Services

Administration Policy & Administration Central Services Risk Management

Service Area Detail

Roads & Transportation Secondary Roads Roadway Maintenance Mass Transit

Government Services to Residents Elections Motor Vehicles Recording of Public Documents

Service Area DetailLong Term Debt General Obligations Bonds Revenue Bonds Loans Lease-Purchase Payments

Capital Projects Buildings or Improvements Roads and Bridges Equipment or Technology Acquisitions

Service Area Comparison

LargeCounty Small County

Public Safety & Legal Serv.

26%

Physical Health & Social Serv.

15%

Mental Health24%

Environment5%

Roads & Trans.4%

Govt. Services 3%

Admin.13%

Debt Service5%

Capital Projects5%

Public Safety & Legal Serv.

15%Physical Health &

Social Serv.4%

Mental Health9%

Environment9%

Roads & Trans.38%

Govt. Services 3%

Admin.9%

Debt Service12%

Capital Projects0%

Nonprogram Current

Elected Officials & BoardsAttorney §331.751Auditor §331.501Board of Supervisors §331.201Recorder §331.601Sheriff §331.651Treasurer §331.551Conservation Board §350Board of Health §137Veteran Affairs Commission §35(B)

County DepartmentsCivil ServiceCommunity ServicesEngineerHuman ResourcesInformation TechnologyFacilities/MaintenanceMedical Examiner Planning & Zoning/Code EnforcementOther

Non-County DepartmentsAssessor District Court AdministrationJuvenile Court ServicesE911Emergency ManagementHuman Services AdministrationSolid Waste Management

Governmental Funds

General Fund Special Revenue FundsDebt ServiceCapital Projects

General Funds §331.427General Basic §331.423

Pays for general county services not paid from other levies

General Supplemental §331.424Elections and Voter Registration Employee benefits (associated with

general county services)Property & liability insuranceMaintenance and operation of the

courts

Special Revenue FundsRural Basic §331.423Rural Supplemental §331.424Secondary Roads §331.429Mental Health §331.424ADebt Service §331.430

Rural Funds §331.428

Rural Basic §331.423Pays for rural county services not paid

from other levies

Rural Supplemental §331.424Employee benefits (associated with

rural county services)Aviation authorities

Debt Service Fund

General Obligation bond payments Tax Increment Financing (TIF) districts

included

Capital Projects Fund

Transfers from General FundBond issue proceedsBonded projects paid from here

Other FundsRecorder’s Records ManagementConservation TrustResource Enhancement And Protection

(REAP)Forfeited Property FundsJail Commissary

Enterprise FundsCountry View Care Facility Washburn Water & Sewer

RevenuesCan be categorized in different ways:

Revenue Source (Taxes, Fees)Service Area (Roads and

Transportation)Fund (General Basic Fund)Department/Office (Sheriff)

Sources of Revenue Taxes

Property tax

Intergovernmental State & federal pass-throughs/tax replacements (e.g., Commercial &

Industrial Replacement) Other governmental payment for services (e.g., contract law

enforcement)

Licenses & Permits E.g., building permits

Charges for Services E.g., recording fees, motor vehicle licenses

Use of Money & Property E.g., interest earnings, land rent

Miscellaneous E.g., special assessments, contributions

Other E.g., proceeds from debt issuance, sale of assets

County Revenue Sources

County Revenue Sources

A Closer Look At Property Taxes

General Basic LevyLevied against all property in the County, except TIFCapped at $3.50/$1,000 of taxable valuationOnly three counties levy below maximum in FY 15

General Supplemental LevyLevied against all property in the County, except TIFUncapped

a) But can only be used to the extent the General Basic levy is insufficient AND

b) Can only be used for specifically authorized functionsc) Rates range from $0 to $3.59, with average of $1.78

Rural Basic LevyLevied against rural property in the County, except TIFCapped at $3.95/$1,000 of taxable valuationThree-fourths of Counties levy below maximum

Rural Supplemental LevyLevied against rural property in the County, except TIFUncapped

a) But can only be used to the extent the Rural Basic levy is insufficient AND

b) Can only be used for specifically authorized functionsc) Rates range from $0 to $0.88, with average of $0.07

A Closer Look At Property Taxes

Mental Health LevyLevied against all property in the County, except TIFLevied at comparison of old maximum of 1990’s cap vs

2013 estimated population 47.28 per capita less Medicaid Offset to create new maximum Schedule provided in budget instructions.

Debt Service LevyLevied against all property in the County, including TIFUncapped

But outstanding debt cannot exceed legal debt limit defined as 5% of actual County valuation

Rates range from $0 to $3.02, with average of $0.54Pre-levy approval of debt required

A Closer Look At Property Taxes

Procedures do exist to exceed levy rate capsAdditions to levies via special levy election requiring majority

approvalCertification of additional levy due to unusual circumstances (e.g.,

disaster, state mandated services, staffing problems, new program substantially benefitting residents, low tax base growth) requiring notice to public

22% of counties exceed maximum General Basic levy

Tax levies and budget funds codified in Iowa Code Sections 331.421 through 331.428

Correcting a common misconception re: Assessor and County HospitalThey are separate governmental entities with their own tax levies,

distinct from County government

A Closer Look At Property Taxes

Property tax levy rates applied against “taxable” valuation

5 of 6 classes of property receive a rollback which lowers taxable value

A Closer Look At Property Taxes

Residential Commercial IndustrialAssessed Value 100,000 100,000 100,000 -Exemptions (10,000) (10,000) (10,000) (e.g., abatements, job credits)=Adjusted Value 90,000 90,000 90,000 x Rollback 50% 90% 90%=Gross Taxable Value 45,000 81,000 81,000 -Credits - - - (e.g., homestead, military)=Taxable Value 45,000 81,000 81,000 Commercial & Industrial Replacement - 9,000 9,000

FY 2016 is the second year of the Commercial, Industrial, and Railroad property rollback of 90% of their 100% valuation.

State will make replacement claim payments to the County Treasurer for the Commercial and Industrial portion.http://www.dom.state.ia.us/local/tax_history/

index.html

A Closer Look At Property Taxes

http://www.dom.state.ia.us/local/tax_history/index.html

A Closer Look At Property Taxes

Secondary RoadsFunded through transfers from the General

Basic and Rural Basic Fund To qualify for Road Use Tax Fund, County must

transfer at least 75% of a minimum amount of their general (16.9¢) and rural ($3.04) tax levies

Also receive federal and state funding such as Road Use Tax Funds, STP, Farm-to-Market, Federal Aid to Bridges, Traffic Safety

A Closer Look At Other Revenue Sources

BondsCapital projects frequently financed through issuance of bondsBonds classified as General Obligation bonds (supported by tax

levy) or Revenue bonds (supported by revenues of the project for which the bonds are issued)

Iowa Code sections 331.441 – 331.443 authorize bonds to be issued for “Essential” county purposes and “General” county purposes With some exception, “essential” bonds may be issued after notice to

public “General” bonds requires 60% approval at special election

Repayment of bonds made through debt service levy, project revenues, or other revenues that may be available to abate the debt levy

A Closer Look At Other Revenue Sources

How does this all come together?

Proposed Budget SummaryPublished Summary of proposed budget

Major Expenditure classesProposed tax levies, estimated uncollected

delinquent taxes, estimated credits to taxpayers, net current property taxes, and delinquent property taxes.

Other major sources of revenuesOther Financial Sources and Uses – Transfers,

Proceeds from the issuance of General Long-Term Debt, Proceeds from sales of capital assets.

Comparison to two proceeding years.Meeting date, time, location and telephone

number.

Other Communications

Questions?Contact Information:

Dawn Jindrich, CPA

Linn County Budget Director

[email protected]

David Farmer, CPA

Scott County Budget Manager

[email protected]