Strategic Revenue & Expenditure Discussion Matt Leavitt, Summit County Finance Officer Michael Howard, Summit County Auditor Corrie Forsling, Summit County Treasurer

General Fund Municipal Fund Assess & Collect Fund Transient Room Tax Restaurant Tax Transient Room Tax General Fund RAP Tax Open Space Fund Landfill Enterprise Fund Fleet Lease Fund Transit District Service Area #8 Service Area #6

General Fund Municipal Fund Assess & Collect Fund Transient Room Tax Restaurant Tax Transient Room Tax General Fund RAP Tax Open Space Fund Landfill Enterprise Fund Fleet Lease Fund Transit District Service Area #8 Service Area #6

Residential Building Permit History Appearance that the County is growing

Residential Building Permit History 2006: 5-year average = 695 permits / year 2011 = 414 permits / year 2016 = 221 permits / year

New Growth Revenues General Fund Avg $460k per year Avg $511k per year Avg $529k per year Avg $175k per year Avg $391k per year Excluding the high and low

New Growth Revenues General Fund

New Growth Revenues Municipal Services Fund Avg $169k per year Avg $91k per year Avg $79k per year Avg $117k per year Excluding the high and low

New Growth Revenues Municipal Services Fund

Planning “Hot Sheet”

Estimating New Growth Revenues IF… ALL $1.2 billion was completed in 2018, and All of the developments were assessed at full market value, and Rates continued to float downward as values increase: General Fund new growth revenues = $787,750 Municipal Services Fund new growth revenues = $577,200 THEN… One-year new growth revenues of $1.3 million Estimated annual property tax revenues would change from (about) $16.2 million to $17.5 million

Estimating New Growth Revenues More likely scenario: Development occurs over time, not at once. About half of residential units will receive the primary residential exemption (taxed at 55% of market value). Tax rates continue to float downwards as values increase.

General Fund Municipal Fund Assess & Collect Fund Transient Room Tax Restaurant Tax Transient Room Tax General Fund RAP Tax Open Space Fund Landfill Enterprise Fund Fleet Lease Fund Transit District Service Area #8 Service Area #6

Where Do My Tax Dollars Go? General Government: many of the elected offices, sustainability, economic development. Public Safety: law enforcement, corrections, dispatch, animal control, ambulances, search & rescue. Public Works: county roads, waste collection, recycling. Government Services: support department such as facilities, IT, human resources. Public Health: general health, mental health.

Next Steps Before June 22: the Auditor needs to present to the Council a proposed tax rate. Before August 1: the County needs to advertise the tax increase, hold public hearings, and adopt the proposed rate. Before August 17: if the resolution is not forwarded to the Auditor, then the certified rate will be the tax rate.

Tax Rate Options Continue with the certified rate (the Null Option): Adjust rate according to changes in values, budget for minor increase from new growth, reduce departmental budgets to reflect anticipated resources. Freeze the tax rate: Still requires the truth in taxation process, budget for minor increase from growth and rate adjustment, reduce departmental budgets to reflect anticipated resources. Increase the tax rate (the Purchasing Power Option): Increase the tax rate to address cost of inflation since 2004, budget according to recommended priorities, address departmental budgets according to priorities and Council’s Strategic Objectives.

Recommendations Direct the Auditor to propose a tax rate different higher than the certified rate. Utilize the increases in the following areas: Restore fund balances Retain and develop employees Asset maintenance Staffing requirements Review potential tax rate adjustments every five years.

Impact of Purchasing Power Option

Questions? …and Direction for County Auditor