1. J OSEPHINE C OUNTY Dedicated Funds Overview Presented at the Weekly Business Session March 25, 2015

2. DEDICATED FUNDS The general requirement is that dedicated revenues must be used for the specific purpose authorized, and separate funds should be established for them (ORS 311.350). Page 19, Local Budgeting Manual (Rev. 05-12)

3. DEDICATED FUNDS Establish a separate special revenue fund for each local option tax providing money for a capital project or other specific purpose. The money received must be retained in such a fund and spent only for the purpose for which the tax was approved (ORS 280.040). This provides fiscal integrity for the local option tax and ensures that it is used to carry out the purpose described in its ballot measure. Page 20, Local Budgeting Manual (Rev. 05-12)

4. DEDICATED FUNDS The key point about Dedicated Funds is that funds are given for a specific purpose and must be used only for that purpose. Other Terms Used – GASB 54 Nonspendable, Restricted, Committed, and Assigned

5. DEDICATED FUNDS (37) Special Revenue Fund (18) – Special Revenue Funds account for the specific revenues and specific uses restricted by law or contractual agreement to specific purposes Capital Projects Fund (4) – Capital Projects Funds account for capital outlays, or the acquisition or construction of capital facilities Debt Service Fund (2) – Debt Service Funds account for the accumulation of resources for, and the payment of, principal and interest on the County’s bonds Internal Service Fund (4) – Internal Service Funds account for activities that provide goods and services to other County departments on a cost-reimbursement basis Enterprise Fund (2) – Enterprise Funds account for any activity for which a fee is charged to external users for goods or services Trust and Agency Fund (7) – Trust and Agency Funds account for resources that are legally restricted for the benefit of individuals or departments, or are held in a custodial capacity

6. DEDICATED FUNDS

8. B UDGET C OMPARISONS OF THE 7 G ENERAL F UND P ROGRAMS Expenses $3,883,600 2014-15 $5,579,937 2004-05 30% Reduction Full Time Equivalents 39.57 2014-15 47.65 2004-05 17% Reduction

9. PERS OBLIGATIONS This statement was published in a newspaper and recently quoted in a letter to the editor: Fact: For every $100 of tax dollars received the first $21 of that $100 dollar goes to PERS Is this true?

10. PERS OBLIGATIONS Based on the Sheriff Budget for 2014-15, let’s do the math: Assume the full $100 in tax revenue is budgeted to be spent. The budget allocation is 75% Payroll and 25% Supplies. The payroll allocation is 60% Salary and 40% Benefits.

11. PERS OBLIGATIONS $100 Revenue times 75% Payroll = $75 $75 Payroll times 60% Salary = $45 The PERS rate for Tier 1/Tier 2 is 15.36% The PERS rate for OPSRP is 14.18% $45 Salary times 15.36% = $6.91 Therefore, at the highest PERS rate, the County is actually spending less than $7 per $100 of tax revenue, not $21.

12. Q UESTIONS OR C OMMENTS ? Email: aohare@co.josephine.or.us