1. BUDGET PROCESS & REVENUE & EXPENSE INFORMATION For FISCAL YEAR 2011

2. TRIM The adopted budget is prepared in accordance with the Truth in Millage (TRIM) requirements as promulgated by the Department of Revenue. In addition, generally accepted accounting principles (GAAP) for state and local governments as set forth by the governmental accounting standards board (GASB), provides standards which guide public financial management and reporting.

3. Process Fiscal Year – budget is based on the fiscal year which begins on October 1 and ends on September30. The budget year for which we are preparing is year ending September 30, 2011. The City’s budget is prepared for General, Community Redevelopment Agency and Infrastructure Funds (governmental funds). The City also adopts operating budgets for the Enterprise Funds.

4. GOVERNMENTAL FUNDS Used for governmental activities- General Government Public Safety Physical Environment Culture & Recreation

5. GENERAL FUND REVENUES AD VALOREM TAXES (PROPERTY) are authorized by the State Legislature AUTHORIZED USES: General revenue for general-purposes Can not be used outside of the general fund

6. GENERAL FUND REVENUES FRANCHISE FEES: 6% OF COMPANY’S GROSS REVENUE FROM THE SALE OF THEIR PRODUCT OR SERVICE ELECTRIC (PROGRESS ENERGY) GAS (PEOPLE’S GAS, TECO, ETC.) USES: GENERAL FUND PURPOSES

7. UTILITY SERVICE FEE ELECTRIC GAS WATER 10% OF THE MONTHLY REVENUE FOR SERVICES PROVIDED BY THE COMPANY AUTHORIZED USES: GENERAL FUND

8. STATE SHARED REVENUES LOCAL GOV’T ½ CENT SALES TAX AUTHORIZED USES: MUNICIPAL WIDE PROGRAMS GENERAL FUND

9. MUNICIPAL REVENUE SHARING PROGRAM Consists of sales tax 71.32 % And Fuel Tax 28.67% Distributed by the State of Florida based on population, sales tax collections, and the ability to raise revenue. AUTHORIZED USES: Transportation related purposes. Repair & Maint. Of streets, right a way costs and other related uses. General fund Revenue

10. LOCAL OPTION FUEL TAX Consists of three taxes GENERAL FUND REVENUE AUTHORIZED USES: Road and right a way maintenance, street lighting, traffic signs, traffic signalization, bridge maintenance, and equipment used for transportation related maintenance.

11. COMMUNICATIONS SERVICE TAX TAXES ON TELECOMMUNICATIONS, CABLE, HOME SATELLITE, AND RELATED SERVICES. CONSISTS OF A STATE TAX AND A GROSS RECEIPTS TAX. GENERAL FUND REVENUE AUTHORIZED USES: USED FOR ANY PUBLIC PURPOSE. INCLUDED AS REVENUE FOR THE GENERAL FUND BUDGET.

12. OTHER GENERAL FUND REVENUE FIRE ASSESSMENT FEES: For use in the general fund for the fire department. This is a large portion of the fire department budget.

13. ENTERPRISE FUNDS To be operated as a business. Charge for services. Water/Sewer Fund Airport Fund Solid Waste Fund

14. ENTERPRISE FUND REVENUES WATER/SEWER FUND Consists of the water utility billing, sewer plant, water plant and public works. Charges for services – used for operating expenses and depreciation.

15. IMPACT FEES WATER/SEWER IMPACT FEES ARE RESTRICTED FUNDS FEES ARE PAID BY HOME OWNER OR DEVELOPERS. USED FOR IMPROVEMENTS TO THE PLANTS, DEBT SERVICE, EXTENSION OF SERVICES. CAN NOT BE USED FOR OPERATING EXPENDITURES. CAPITAL AND DEBT ITEMS ONLY!!!!

16. AIRPORT REVENUES OPERATING REVENUES ARE OBTAINED FROM HANGAR RENTALS. GRANT REVENUES MUST BE SPENT ON APPROVED CAPITAL ITEMS. CAN NOT BE USED FOR OPERATIONS.

17. SOLID WASTE FUND PICK UP AND DISPOSAL OF TRASH AND GARBAGE. REVENUE IS CHARGES FOR SERVICES. THE CITY OF AVON PARK OWNS A LANDFILL. THIS IS FOR OUR USE ONLY AND IS USED FOR YARD TRASH ONLY. ALL HOUSING AND COMMERCIAL ENTITES ARE CHARGED MONTHLY. RESIDENTIAL ARE CHARGED $20 AND COMMERCIAL IS BASED ON DUMPSTER SIZE.

18. INFRASTRUCTURE FUND THIS IS THE DISCRETIONARY SALES SURTAX OF 1% COUNTY WIDE. The State sales tax rate is 6%. Highlands County imposed a 1% sales tax in 1989. Sales tax in the county = 7%. The County has this extended until Oct. 31, 2019

19. INFRASTRUCTURE FUND AUTHORIZED USES: CAN NOT BE USED FOR OPERATIONAL EXPENSES OF INFRASTRUCTURE. MUST BE USED ON CAPITAL ASSET ITEMS ONLY. CAN BE USED TO MAKE DEBT PAYMENTS ON INFRASTRUCTURE.

20. AUTHORIZED USES CON’T. FIXED ASSETS ASSOCIATED WITH CONSTRUCTION, RECONSTRUCTION OR IMPROVEMENT OF PUBLIC FACILITIES. PUBLIC SAFETY EQUIPMENT – POLICE VEHICLES, FIRE VEHICLES. PUBLIC SAFETY EQUIPMENT IF OVER $1,000 AND HAS AT LEAST A 5 YEAR LIFE.

21. INFRA CON’T. PARK AND RECREATION USE IS MORE STRICT. NO REPARIS, ETC TO EXISTING PARKS. CAN BE USED TO PURCHASE LAND FOR PARKS.

22. TRIM COMPLIANCE Chapter 200, Florida Statutes and the Truth in Millage (TRIM) guidelines promulgated by the Florida Department of Revenue outline specific requirements that local governments must follow with respect to adopting property tax rates and budgets. Some of the key requirements are as follows:

23. TRIM CON’T. Specific timetables with respect to the noticing of the local Property Appraiser’s office for the adoption of the ad valorem millage rate and budget; the scheduling of the Tentative and Final Millage Rate/Budget public hearings and the respective advertising of the public hearings. The preparation of specific forms which must be sent to the local Property Appraiser’s and Tax Collector’s offices and the Florida Department of Revenue. The placement of specific advertisements which are uniform throughout the state based on the local government’s situation.

24. BUDGET CALENDAR April 1Departments are requested to review the 5 year Capital Improvement Plan (CIP) and submit any changes. May 1Instructions are given to departments to prepare their budget requests. June 1 Completed budget requests are returned to the Finance Director. June 1Preliminary tax roll information from the Property Appraiser’s Office is received. June 14Finance Director and City Manager review the department requests. June 26Tentative Budget will be presented to Council for discussion.

25. BUDGET CALENDAR CON’T. July 1The Property Appraiser certifies the taxable value within the City. July 17Second budget meeting with Council if necessary. July 26Council sets the preliminary millage rate and fire assessment rate. August 2The Finance Director advises the Property Appraiser of its proposed millage rate, rolled back rate and the date, time and place at which the public hearing will be held. ( within 35 days of certification) August 21Property Appraiser mails out the TRIM notice.

26. BUDGET CALENDAR CON’T. September 13The City holds a public hearing on the tentative budget and proposed millage rate, amend, and adopt a tentative budget and CIP Plan. September 24The City advertises in a newspaper of general circulation the City’s intent to finally adopt a millage rate and budget. September 27The City holds its final (second) public hearing and adopts a final millage rate and budget.

27. BUDGET 2011 Staff is available to answer any questions and concerns. Thank-you! Renée