January 14, 2015 Dawn Jindrich, Linn County Budget Director David Farmer, Scott County Budget Manager ISAC New County Officers School

Agenda Services Provided Funding Sources Budget Process Questions

Budget Definition Budget: A financial plan for a specified period of time (fiscal year) that matches all planned revenues and expenditures with various County services.

Expenditures Can be categorized in different ways: Expenditure Category Service Area Fund Department/Office

Classes of Expenditures Personnel Services Salaries Benefits Operations Minor purchases Services Capital Outlay Capital Asset Acquisitions

Service Areas Public Safety & Legal Services Physical Health & Social Services Mental Health, Intellectual & Developmental Disabilities County Environment and Education Roads & Transportation Government Services to Residents Administration Non-program Current Debt Service Capital Projects

Service Area Detail Public Safety & Legal Law Enforcement Legal Services and Courts Emergency Services Physical Health & Social Services Physical Health Services Services to Poor Programs Services to Military Veterans Children’s & Family Services

Service Area Detail Mental Health, Intellectual & Developmental Disabilities Mental Illness Chronic Mental Illness Intellectual Disabilities Other Developmental Disabilities County Provided Case Management General Administration County Provided Case Management Brain Injury

Service Area Detail County Environment & Education Conservation & Recreation Services Animal Control Planning & Development Educational Services Administration Policy & Administration Central Services Risk Management

Service Area Detail Roads & Transportation Secondary Roads Roadway Maintenance Mass Transit Government Services to Residents Elections Motor Vehicles Recording of Public Documents

Service Area Detail Long Term Debt General Obligations Bonds Revenue Bonds Loans Lease-Purchase Payments Capital Projects Buildings or Improvements Roads and Bridges Equipment or Technology Acquisitions

Service Area Comparison LargeCountySmall County

Elected Officials & Boards Attorney § Auditor § Board of Supervisors § Recorder § Sheriff § Treasurer § Conservation Board §350 Board of Health §137 Veteran Affairs Commission §35(B)

County Departments Civil Service Community Services Engineer Human Resources Information Technology Facilities/Maintenance Medical Examiner Planning & Zoning/Code Enforcement Other

Non-County Departments Assessor District Court Administration Juvenile Court Services E911 Emergency Management Human Services Administration Solid Waste Management

Governmental Funds General Fund Special Revenue Funds Debt Service Capital Projects

General Funds § General Basic § Pays for general county services not paid from other levies General Supplemental § Elections and Voter Registration Employee benefits (associated with general county services) Property & liability insurance Maintenance and operation of the courts

Special Revenue Funds Rural Basic § Rural Supplemental § Secondary Roads § Mental Health § A Debt Service §

Rural Funds § Rural Basic § Pays for rural county services not paid from other levies Rural Supplemental § Employee benefits (associated with rural county services) Aviation authorities

Debt Service Fund General Obligation bond payments Tax Increment Financing (TIF) districts included

Capital Projects Fund Transfers from General Fund Bond issue proceeds Bonded projects paid from here

Other Funds Recorder’s Records Management Conservation Trust Resource Enhancement And Protection (REAP) Forfeited Property Funds Jail Commissary Enterprise Funds Country View Care Facility Washburn Water & Sewer

Revenues Can be categorized in different ways: Revenue Source (Taxes, Fees) Service Area (Roads and Transportation) Fund (General Basic Fund) Department/Office (Sheriff)

Sources of Revenue Taxes Property tax Intergovernmental State & federal pass-throughs/tax replacements (e.g., Commercial & Industrial Replacement) Other governmental payment for services (e.g., contract law enforcement) Licenses & Permits E.g., building permits Charges for Services E.g., recording fees, motor vehicle licenses Use of Money & Property E.g., interest earnings, land rent Miscellaneous E.g., special assessments, contributions Other E.g., proceeds from debt issuance, sale of assets

County Revenue Sources

A Closer Look At Property Taxes General Basic Levy Levied against all property in the County, except TIF Capped at $3.50/$1,000 of taxable valuation Only three counties levy below maximum in FY 15 General Supplemental Levy Levied against all property in the County, except TIF Uncapped a) But can only be used to the extent the General Basic levy is insufficient AND b) Can only be used for specifically authorized functions c) Rates range from $0 to $3.59, with average of $1.78

Rural Basic Levy Levied against rural property in the County, except TIF Capped at $3.95/$1,000 of taxable valuation Three-fourths of Counties levy below maximum Rural Supplemental Levy Levied against rural property in the County, except TIF Uncapped a) But can only be used to the extent the Rural Basic levy is insufficient AND b) Can only be used for specifically authorized functions c) Rates range from $0 to $0.88, with average of $0.07 A Closer Look At Property Taxes

Mental Health Levy Levied against all property in the County, except TIF Levied at comparison of old maximum of 1990’s cap vs 2013 estimated population per capita less Medicaid Offset to create new maximum Schedule provided in budget instructions. Debt Service Levy Levied against all property in the County, including TIF Uncapped But outstanding debt cannot exceed legal debt limit defined as 5% of actual County valuation Rates range from $0 to $3.02, with average of $0.54 Pre-levy approval of debt required A Closer Look At Property Taxes

Procedures do exist to exceed levy rate caps Additions to levies via special levy election requiring majority approval Certification of additional levy due to unusual circumstances (e.g., disaster, state mandated services, staffing problems, new program substantially benefitting residents, low tax base growth) requiring notice to public 22% of counties exceed maximum General Basic levy Tax levies and budget funds codified in Iowa Code Sections through Correcting a common misconception re: Assessor and County Hospital They are separate governmental entities with their own tax levies, distinct from County government A Closer Look At Property Taxes

Property tax levy rates applied against “taxable” valuation 5 of 6 classes of property receive a rollback which lowers taxable value A Closer Look At Property Taxes

FY 2016 is the second year of the Commercial, Industrial, and Railroad property rollback of 90% of their 100% valuation. State will make replacement claim payments to the County Treasurer for the Commercial and Industrial portion. A Closer Look At Property Taxes

A Closer Look At Property Taxes

Secondary Roads Funded through transfers from the General Basic and Rural Basic Fund To qualify for Road Use Tax Fund, County must transfer at least 75% of a minimum amount of their general (16.9¢) and rural ($3.04) tax levies Also receive federal and state funding such as Road Use Tax Funds, STP, Farm-to-Market, Federal Aid to Bridges, Traffic Safety A Closer Look At Other Revenue Sources

Bonds Capital projects frequently financed through issuance of bonds Bonds classified as General Obligation bonds (supported by tax levy) or Revenue bonds (supported by revenues of the project for which the bonds are issued) Iowa Code sections – authorize bonds to be issued for “Essential” county purposes and “General” county purposes With some exception, “essential” bonds may be issued after notice to public “General” bonds requires 60% approval at special election Repayment of bonds made through debt service levy, project revenues, or other revenues that may be available to abate the debt levy A Closer Look At Other Revenue Sources

How does this all come together? Budget Official Departmental Budget Estimates Budget Estimates – January 15 Compilation of Revenue Total Resources = Total Requirements Prepare Proposed Budget Public Hearing Each Newspaper Not Less than 10 days Not more than 20 days File with Auditor Proposed Budget estimate Proof of publication Adopted Budget by resolution by March 15

Proposed Budget Summary Published Summary of proposed budget Major Expenditure classes Proposed tax levies, estimated uncollected delinquent taxes, estimated credits to taxpayers, net current property taxes, and delinquent property taxes. Other major sources of revenues Other Financial Sources and Uses – Transfers, Proceeds from the issuance of General Long-Term Debt, Proceeds from sales of capital assets. Comparison to two proceeding years. Meeting date, time, location and telephone number.

Other Communications Budget Goals Strategic Plans Long Range Forecasting Capital Improvement Planning Townhall Tax Levy RatesChange in Services Impacts to homeowners / businesses Overall Health Budget Amendments Before May 31 Increases in any of 10 major classes of expenditures Published not less than 10 nor more than 20 days All County Official newspapers Annual Reports Audited Financial Statements State Annual Financial Report Published by December 1 Single Audit Other - Treasurer’s Annual Statement, REAP, Secondary Roads, Self Insurance

Questions? Contact Information: Dawn Jindrich, CPA Linn County Budget Director David Farmer, CPA Scott County Budget Manager