County Government Funding & Options Centra In-Service May 10, 2011 Notie Lansford, Extension Economist Program Leader, County Gov. Training Program, CTP
Objectives Identify and Describe the “Funds” Discuss Ways to Acquire More Funds Discuss Some Ways to Use Funds More Effectively Know Enough “to be Dangerous” Identify Additional Resources
Know Your Funds & Options Know enough to be dangerous! General Fund Highway Fund Cash Funds, e.g. ◦ Treasurer’s Resale Property, ◦ Clerk’s Lien Fee, ◦ Sheriff’s Service Fee, ◦ Sales Tax and Use Tax ◦ Lodging Tax Sinking Fund for Debt Others, like County Health Dept., EMS District, Solid Waste Mgmt, County Library
County General Fund Revenue FY
County Highway Fund Revenue, FY
County General Fund Historically, the fund paying for most courthouse functions
Avg. FY ’04 Ad Valorem Levy 12.17%
Sources of Revenue General Fund 1. Ad Valorem Taxes A mill levy on tangible, taxable property. For example: Fair Cash Value of a Home$ 80,000 Assessment Ratio X.12 Assessed Value $ 9,600 less Homestead Exemption -1,000 Net Assessed Value $ 8,600 Tax Rate (80 mills) X Tax Due $ 688
General Fund Sources 2. County Clerk Fees 28 O.S. § 32 ◦ For registration of deeds and various other instruments, such as leases, assignments, conveyances, plats, and mechanic’s liens. $ 8 for recording the first page $ 2 for recording each additional page $ 1 per page for furnishing hard copies 3. Interest on Investment; 68 § 348.1
General Fund Sources 4. County Sales, Use, & Lodging Taxes County Sales Tax ◦ A maximum of 2%. ◦ Must be approved majority of local voters. ◦ For specified purpose(s). ◦ Applies to the same items as the state sales tax. “Use Tax” may be added by resolution of county commissioners.
12 County Sales, Use, & Lodging Taxes continued County Lodging Tax ◦ Counties of less than 200,000 ◦ Maximum of 5% on lodging rooms. ◦ Approved by majority of voters. ◦ For specified purpose. ◦ General Fund or a cash Revolving Fund ◦ Inapplicable within cities already levying a lodging tax. ◦ Adopted in : Blaine, Cimarron, Greer, Johnston, Love, Marshall, McCurtain, Osage, Pontotoc, Latimer
County Sales & Lodging Taxes WOODWARD ADAIR ALFALFA ATOKA BECKHAM BLAINE BRYAN CANADIAN CARTER CHEROKEE CHOCTAW CIMARRON CLEVELAND COMANCHE COTTON CRAIG CUSTER DELAWARE DEWEY ELLIS GARFIELD GRADY GRANT GREER HARMON HARPER JACKSON JEFFERSON KAY KIOWA LATIMER LOVE MAYES MURRAY MUSKOGEE NOBLE NOWATA OKLAHOMA OKMUL GEE OSAGE OTTAWA PAWNEE PAYNE PUSHMATAHA ROGER MILLS ROGERS SEQUOYAH STEPHENS TILLMAN TULSA WAGONER WASHITA WOODS WASHINGTON MARSHALL MAJOR KINGFISHER BEAVER TEXAS LOGAN CREEK LINCOLN OKFUSKEE McINTOSH CADDO MCCLAIN GARVIN SEMINOLE POTTAWATOMIE HUGHES PITTSBURG HASKELL LE FLORE COAL JOHNSTON PONTOTOC McCURTAIN Lodging Tax Counties, 9 Sales & Use Tax, 67 Sales Tax only, 8
General Fund Sources 5. Transfer Payments From State, To Counties Motor Vehicle License & Registration Fees ◦ Excise Tax 68 O.S § … ◦ Annual Registration 47 O.S § … ◦ 0.83% - County General Fund
General Fund Sources 6. Reimbursements – “pass through” Visual Inspection (Revaluation) The cost of the “program of visual inspection” is shared by all local jurisdictions collecting an ad valorem levy. Each jurisdiction’s share is proportional to its total levy the prior year. 68 O.S. §§ 2820,
General Fund Sources 6. Reimbursements District Attorney = County + State Portion The county must provide the D.A. with office space; law library and legal subscriptions; funds for investigation, prosecution or defense of any action wherein the county is a party. 19 O.S. §§ The state shall provide for all other expenses through the District Attorneys Council. However, the county pays these expenses and is reimbursed monthly.
General Fund Sources 6. Reimbursements Election Board “The salary and fringe benefits paid to each secretary shall be paid from county funds on a monthly basis and shall be reimbursed from funds appropriated by the Legislature …” 26 O.S. §§
Variation Across the State Heavy Dependence on Property Tax Heavy Dependence on Sales Tax Sales Tax Placement ◦ General Fund and/or Cash Fund Diverse Use of Sales Tax ◦ 100% Hospital or Jail ◦ Split 17 Different Ways Roads, Rural Fire, Solid Waste, Fair, General, … S. T. Cash Balance Carried Over
County Highway (Road) Fund
Cash Funds (Special Revenue Funds) Generally, funded from a fee or limited number of fees Generally, highly restricted as to use. e.g. Resale Property Fund – Funded from interest charged for late payment of taxes. Treasurer is to use it for collection of delinquent taxes.
1.85 cents for courthouse improvemen ts, roads, sheriff, and general
How to Get More Funding Treasurer & Sheriff actively involved in collecting delinquent taxes; “Personal Property Tax Sale Warrants” EMS/Fire/Ambulance mill levy for county- wide ambulance service Lodging, Use, and Sales Tax Increase the Assessment Percentage on Taxable Property Investment policy
How to get more funding Transfer of Funds if needed to avoid paying interest on non-payable warrants Tribal Joint Ventures ◦ Road and Bridge Projects ◦ Tribal Government Institute REAP – Rural Economic Action Plan grants – e.g. OK Water Resources Bd. CDBG – Community Development Block Grants – OK Dept of Commerce Circuit Engineering Districts funding page Circuit Engineering Districts
Ways to Save Money Sharing Resources ◦ Equipment ◦ Employees Co-op Purchasing among ◦ Departments Paper; internet service; office supplies Purchasing in quantity – keep good consumable inventories Blister (individuals wrapped) packs for medications ◦ Counties Pharmacy for Prisoners Medical supplies Joint road projects
Ways to Save Money Education for Employees ◦ Safety programs offered by ACCO ◦ Wellness programs offered by insurance company ◦ Employment/Management Programs with OSU Insurance Deductibles Conserve Energy Turn off computers/lights Energy efficient light bulbs Labor Force Management ◦ Full Time vs. Part Time ◦ Contract for services
Ways to Save Money: Be informed Local ◦ Communicate with each other Budgets are part of your everyday life Meet to discuss budgets throughout the year Understand goals for officer; keep the dialog open Don’t assume the largest budget can take the largest cut ◦ Be involved with local economic development ◦ Seek input of constituents Legislative ◦ Keep in touch with local legislators ◦ Study the impact of pending legislation State Associations/Government ◦ Attend meeting ◦ Learn from your counter parts in other counties ◦ Utilize technical assistance with SA&I, OTC, OCES’s County Training Program
Resources Publications: Fact Sheets: 1. Ad Valorem Taxes 2. Duties & Responsibilities of Elected County Officials 3. Duties & Responsibilities of Non-Elected County Officials 4. … 1. Resources Publications: Fact Sheets: 1. Ad Valorem Taxes 2. Duties & Responsibilities of Elected County Officials 3. Duties & Responsibilities of Non-Elected County Officials 4. … 1. Abstract of County Government General, Highway, and Special Revenue Funds in OK (Fiscal Year ) 2. Summary - County Sales, Use, & Lodging Taxes, FY "Oklahoma Ad Valorem Mill Levies, Fiscal Year 2009“ OCES CTP Training – Courses, Handbooks, Technical Assistance Abstract of County Government General, Highway, and Special Revenue Funds in OK (Fiscal Year )Summary - County Sales, Use, & Lodging Taxes, FY 09"Oklahoma Ad Valorem Mill Levies, Fiscal Year 2009“
Other Sources of Information Oklahoma Tax Commission ◦ Publications State Auditor and Inspector ◦ Audit Reports County Training Program (CTP) ◦ Budget Process, 2 day class Building Your Budget, 1 day class
CTP, OSU Contacts Notie Lansford, Extension Economist ◦ (405) or Ann Embree, Local Government Specialist ◦ (405) or Judy Rudin, Communications Specialist ◦ (405) or Sherri Schieffer, Local Government Specialist ◦ (405) or Suzanne Spears, Local Government Specialist ◦ (918) or Glenda Emerson, Local Government Specialist, Gloria Cook (405) ,