General Government Budget Overview
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 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 General Fund transfer Property tax Utility Tax Intergovernmental revenue Growth rate of these revenues over past years declining or flat Starting to see uptick in total revenue 4
General Fund Revenue
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 1/3 of total budget FY15 New Transfer Formula Base equals FY14 GFT level as determined by prior GFT formula 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 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 Tax rate set by the taxing authority each year Rate per $1,000 value FY16 rate is
Property Taxes Taxable Value Determined by the Property Appraiser Various exemptions Up to $50,000 - Homestead Exemption $25,000 – Senior Low Income Homestead Exemption $500 - Widows/Widowers, Disability and Blind Persons $5,000 - Veteran Disability Portability Ability of homeowners to transfer their Save Our Homes benefit up to $500,000 to a new homestead
Taxable Property Value
Millage Rates
Taxable Property
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 13
Utility Tax
Intergovernmental Revenues Account for 12% or $12.6M of revenue budget Half Cent Sales Tax and State Revenue Sharing is $10.2M Dramatically effected by recession FY09-FY13 are approximately $6.10M or 12.4% less than FY04-FY08 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
Fire Assessment Implemented in FY11 and must be approved every year through separate resolution $78 per factored fire protection unit $5.4 million in revenue each year Starting in FY16, the City will pay the fire assessment on behalf of religious and charitable organizations ~ $120,000
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
General Fund Expenditure Budget
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
General Fund Expenditures FY16 Added some new programs and pilot programs into budget including: New service level for RTS operations Development Services Center project Bike Share Program Sweetwater Wetlands Park
Questions