Local Government Budgeting: Making Sense of Form 4-B Larry DeBoer Purdue University June 16, 2006 Purdue Extension Bottom-Kohlmeyer Fund Workshop.

Local Government Budgeting:Making Sense of Form 4-B

Larry DeBoer

Purdue University

June 16, 2006

Purdue ExtensionBottom-Kohlmeyer Fund Workshop

Budget Form 4-B: “The 16-Line Form”

Lines 1 – 5:Total Funds Required

“What You Need”

Adams County General Fund, 20061. Budget, Incoming Year 9,226,5052. Expenditures, 7/1-12/31 3,905,6413. Additional Appropriations 56,9204a. Loans to be Paid 04b. Loans not Repaid by 12/31 05. Total Funds Required 13,189,066

Budget Form 4-B: “The 16-Line Form”

Lines 6 – 9:Total Funds

“What You’ve Got”

Adams County General Fund, 20066. Balance, 6/30 4,081,011

7. Taxes, December 2,501,768

8a. Misc. Revenues to Dec. 1,744,958

8b. Misc Revenues next year 3,680,742

9. Total Funds 12,008,479

Budget Form 4-B: “The 16-Line Form”

Lines 10-14:Amount to be Raised

“What You Need to Get”

Adams County General Fund, 200610. Amount to be Raised 1,180,587

11. Operating Balance 3,869,387

12. Amount to be Raised 5,049,974

13. CAGIT PTRC 0

14. AMOUNT TO BE RAISED 5,049,974

The Budget as Checking Account

Expected Balance, Jan. 1

Expected Revenues, Bud. Year

Appropriations, Budget Year

Expected Balance, Dec. 31

Expected Balance, Jan. 1

+6. Balance, 6/30 4,081,011

+7. Taxes, December 2,501,768

+8a. Misc. Revs. to Dec. 1,744,958

Expected Balance, Jan. 1

-2. Expend., 7/1-12/31 3,905,641

-3. Additional Appro. 56,920

-4a. Loans to be Paid 0

-4b. Loans not Repaid by 12/31 0

Total 4,365,176

The Budget as Checking Account

Expected Balance, Jan. 1 4,365,176

Expected Revenues, Bud. Year

Appropriations, Budget Year

Expected Balance, Dec. 31

Expected Revenues, Budget Year

8b. Misc Revenues next year 3,680,742

13. CAGIT PTRC 0

14. Amount to be Raised 5,049,974

Total 8,730,716

The Budget as Checking Account

Expected Balance, Jan. 1 4,365,176

Expected Revenues, Bud. Year 8,730,716

Appropriations, Budget Year

Expected Balance, Dec. 31

Appropriations, Budget Year

1. Budget, Incoming Year 9,226,505

The Budget as Checking Account

Expected Balance, Jan. 1 4,365,176

Expected Revenues, Bud. Year 8,730,716

Appropriations, Budget Year 9,226,505

Expected Balance, Dec. 31

The Budget as Checking Account

Expected Balance, Jan. 1 4,365,176

Expected Revenues, Bud. Year 8,730,716

Appropriations, Budget Year 9,226,505

Net, Budget Year -495,789

Expected Balance, Dec. 31

The Budget as Checking Account

Expected Balance, Jan. 1 4,365,176

Expected Revenues, Bud. Year 8,730,716

Appropriations, Budget Year 9,226,505

Net, Budget Year -495,789

Expected Balance, Dec. 31 3,869,387

Equals Line 11, Operating Balance

Checking Account Indicators

Balances as Percent of Appropriations

June (Line 6 / Line 1) 44.2%

January (Total Jan. / Line 1) 47.3%

December (Line 11 / Line 1) 41.9%

Balances, Revenues Twice a Year

January 1 June 30 Dec. 31

50%

0%

Checking Account Indicators

Target Balance, 6/30 & 12/31 One Half of Tax Levy, Percent of

Appropriations

½ x Line 14 / Line 1

Budget Form 4-B: “The 16-Line Form”

Line 11:Operating Balance

Checking Account Indicators

Target Balance,6/30 & 12/31One Half of Tax Levy

Line 11: Operating Balance (not in excess of expense January 1 to June 30, less miscellaneous revenue for same period)

Checking Account Indicators

Balances as Percent of Appropriations

June (Line 6 / Line 1) 44.2%

January (Total Jan. / Line 1) 47.3%

December (Line 11 / Line 1) 41.9%

Target/Ceiling (½ Line 14 / Line 1)

27.4%

Appropriations per Person

Adams County General Fund, 20061. Budget, Incoming Year 9,226,505Population 33,872Appropriations per Person 272State Median

245Highest (Pulaski) 506Lowest (Clark) 128

Appropriations per Person

Counties have larger general fund appropriations per person if – They are Small (less than 15,000

people)

– They are more wealthy (larger A.V./person)

Appropriations per Person

Counties have larger general fund appropriations per person if – They have less Homeowner

Property in their A.V.

– They have higher June balances as a share of appropriations

Appropriations per Person

Adams County General Fund, 2006Appropriations per Person 272

Not smallNot wealthyMore homeownersBut. . . Lots of balancesOther factors?

Assessment and Tax Billing Schedule

December Taxes / Tax Levy

Line 7 / Line 14

Should be just under 50%

Assessment and Tax Billing Schedule

December Taxes / Tax Levy

Counties over 80%:

2002-03 none

2003-04 72

2004-05 61

2005-06 19