COUNTY BUDGET PROCESS Governmental Procedures and Structure Committee Taxation and Budget Reform Commission August 10, 2007 By: Rick Helms, CGFO Assistant County Administrator Highlands County BCC

GOVERNING PROCEDURES AND RULES FOR COUNTIES Florida Statutes Florida Administrative Code Department of Revenue TRIM Compliance Local Rules

KEY PARTICIPANTS Board of County Commissioners Elected Officials Sheriff Property Appraiser Tax Collector Supervisor of Elections Clerk to Board Office of Management and Budget Stakeholders – Taxpayers County Operating Departments Stress the difference between County and City and the appeal process available to PA TC and Supervisor Explain the interaction between the various elected officials Clerk – Chapter 28 (28.12) Florida Statutes and Article VIII Florida Constitution – Provides accounting and record services for the Board Sheriff – Chapter 30 Florida Statutes – Provides law enforcement and protection for citizens. Runs the County Jail and provides court security Property Appraiser – Chapter 195 and 200 Florida Statutes (Discuss funding Board and Water Mgmt Districts) – Determines just and taxable value of property Tax Collector – Chapter 197 Florida Statutes; Board pays the fees for collection of school taxes $915,000 in the current year. Collects taxes for all taxing authorities. Supervisor of Elections – Chapter 98 Florida Statutes – Obviously provides for elections. Board – Chapter 125 and 129 Florida Statutes – Provides all other services. TRIM – Chapter 200 Florida Statutes

KEY PARTICIPANT RELATIONSHIPS

CALENDAR January-Collection of data by OMB Workshops with BCC to establish policy & priorities – January & February March-Upgrades to software and training for departments Budget instructions provided in March Departmental budgets submitted in April

CALENDAR (cont.) Elected official budgets received by June 1 (Exception – Tax Collector due August 1) Televised staff budget workshops Property Appraiser provides taxable value July 1 Recommended Budget to Board by July 15 Budget Workshops with Board in July & August Certification of millage rate by August 4 Tax Collector is fee officer. All taxing authorities pay a fee for collection of taxes with the exception of School Board. County Administrator provides recommended budget to Board.

CALENDAR (cont.) Appeals to Recommendations Public Hearings First hearing noticed by TRIM notice TRIM advertisement for final hearing Notification for appeal periods to Sheriff and Supervisor of Elections Notification to Property Appraiser, Tax Collector and Department of Revenue of Adopted Rates Value Adjustment Board hears appeals on determination of taxable value

Components of General Fund Board of County Commissioners Departments Elected Officials Article V – State Courts Mandated Programs Agency Funding Reserves

GENERAL FUND BY ENTITY

GENERAL FUND SOURCES Property Taxes are moneys collected through an ad valorem levy on all non-exempt property in the County. Intergovernmental revenues include sales tax and State revenue sharing from the State of Florida. Charges for services are primarily fees charged for Emergency Medical Services. Other taxes are the franchise fees received by the County. Miscellaneous revenues include interfund transfers, administrative fees for special tax districts and recovery of uncollectible EMS accounts. Fines and forfeitures include all court fines. Interest includes all moneys earned on investments, contracts, and notes. Licenses and permits include animal control licenses and contractor’s licenses. Fund Balance is the fund balance brought forward for budgetary purposes.

GENERAL FUND USES Public Safety: Services in this functional area are provided by Highlands County Board of County Commissioners and the Sheriff for the security of county residents and their properties. The major areas included are the Sheriff's Department, EMS, Emergency Management, and Fire Services. Transportation: Services in this functional area are provided by Highlands County to offer safe and adequate flow of vehicles, travelers, and pedestrians. The major areas include the County Engineer, the Road and Bridge Department, and the road improvement districts. General Government: Services in this functional area are provided by the Legislative and Administrative branches of Highlands County Government for the benefit of the public and the County Government as a whole. The major areas include Board of County Commissioners, Tax Collector, Property Appraiser, Clerk of Courts, County Administrator, Office of Management and Budget, General Services, Human Resources, and Development Department. Physical Environment: Services in this functional area are provided by Highlands County for the primary purpose of achieving a satisfactory living environment by controlling and utilizing elements of the environment. Solid waste operations comprise the majority of these services. Human Services: This functional area provides health and human services. The major areas include the Highlands County Public Health Unit and Human Services Department. Culture/Recreation: This functional area offers the provision and maintenance of cultural and recreational facilities and activities for the benefit of citizens and visitors of Highlands County. The major areas include Parks and Recreation Department and the Countywide Library System. Economic Environment: This functional area provides services that develop and improve the economic condition of the community. The major areas include Industrial Development Authority, State Housing Initiatives Partnership and Veterans Affairs. Court Related: This functional area provides services for court administration, criminal court, civil court, juvenile court, traffic court, court reporting, courthouse security, and maintenance of court related facilities. This function is intended to quantify expenditures by the counties in the State of Florida in support of the state court system created by Article V of the state constitution Adopted in 1972. Reserves: This functional area provides reserves for contingencies for unanticipated events and associated expenditures (i.e. natural disasters). Interfund Transfers: Includes transfers of moneys between funds, which are not classified as expenditures.

COMMUNICATION Legislative Body – Board Elected Officials Stakeholders Operating Departments Multiple levels and channels. Board to Senior Management; Senior Management to staff; Board to Constitutional Officers; Board and staff to stakeholders Methods of Communication to stakeholders 1-TV 2-Web 3-Technology

DEMOGRAPHICS Population – 95,199 Per capita income - $23,362 Median age - 50.6 32.7% of population over 65 YOA Unemployment rate – Local 4.1% State 3.5% 78% of population in the unincorporated area Unemployment rates are for June 2007 Ranks second in state for population over 65 yoa Per capita income for State in 2005 - $34,001 (BEBR)

ACCOUNTABILITY Board to stakeholders County Administrator to Board Staff to Administrator Constitutional Officers to stakeholders Recent legislative changes arose from a perceived lack of accountability of Board to stakeholders.

IMPACT OF MILLAGE RATE REDUCTION Lowest millage rate since 1988 Growth rate in Highlands County taxable value between 1980 and 2004 is 5.77% per year Population growth during same period = 45,928 (97%) 5.6 % reduction in millage rate in current year 13.5% reduction in millage rate for next year Previous roll-back rate methodology = 7.5487 or 11.2% reduction from current year rate. Growth rate average includes new construction 7.5487 would still be the lowest millage rate since 1988 (50,043,613 / 6,629,471,907) (prior year proceeds / Current year adjusted taxable value