City Council Meeting Presentations

 Part I – Regulations and Terminology May 17, 2011  Part II – Revenues June 7, 2011  Part III – Fund Descriptions June 21, 2011  Part IV – Prior Year Budget Reductions July 5, 2011

City Council Meeting May 17, 2011

 Governmental Accounting Standards Board – GASB ◦ Exposure Drafts ◦ Statements ◦ Technical Bulletins

 Federal Government ◦ Payroll taxes ◦ Debt issuance ◦ Grant compliance ◦ 1099 reporting ◦ 3% withholding

 State Government (Statutes, Department of Revenue, Rules of the Auditor General) ◦ Truth in Millage (TRIM) ◦ Grant compliance ◦ Annual reporting requirements 

Fund accounting is a system for segregating financial resources to ensure and demonstrate legal compliance with restrictions or other special purposes.

A fund is a fiscal and accounting entity with a self- balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances and changes therein, which are segregated for the purpose of conducting specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Funds are divided into various types according to the legal restrictions imposed upon them or by their uses.

 Governmental ◦ General fund ◦ Special revenue funds ◦ Capital project funds ◦ Debt service funds ◦ Permanent funds  Proprietary ◦ Enterprise funds ◦ Internal service funds  Fiduciary ◦ Trust funds ◦ Agency funds Pooled Cash and Investments

 Governmental ◦ Non-spendable ◦ Restricted ◦ Committed ◦ Assigned ◦ Unassigned  Enterprise ◦ Restricted ◦ Unrestricted

 Debt coverage ratios  Rate  Utility Less: Stabilization Net  Fiscal Service Operating Transfers Available Debt Service  Year Charges Expenses To/(From) Revenue Principal Interest Coverage  ,674,110 14,789,497 1,000,000 10,884,613 1,880,000 4,368,  ,925,712 16,496, ,429,024 1,920,000 4,329,  ,044,523 16,743, ,301,224 1,955,000 6,445,  ,132,136 17,170,763 (1,500,000) 12,461,373 2,970,000 6,352,  Defined benefit vs. Defined contribution pension plans  Other Post Employment Benefits - OPEB

City Council Meeting Presentations

 Part I – Regulations and Terminology May 17, 2011  Part II – Revenues June 7, 2011  Part III – Fund Descriptions June 21, 2011  Part IV – Prior Year Budget Reductions July 5, 2011

City Council Meeting June 7, 2011

 Taxes  Permits, Fees and Special Assessments  Intergovernmental Revenue  Charges for Services  Judgments, Fines, and Forfeits  Miscellaneous Revenues  Other Sources

 Interfund Transfers ◦ Payment-In-Lieu-Of-Taxes (PILOT) ◦ Interfund loans ◦ Tax increment for the CRA  Debt Proceeds

 Interest and Other Earnings  Disposal of Fixed Assets  Contributions and Donations  Other Miscellaneous Revenue

 Traffic Citations  Local Ordinance Violations ◦ Parking tickets ◦ Fire mitigation ◦ Code fines

 Utility Fees ◦ Water and sewer ◦ Solid Waste ◦ Stormwater  Annual Fire Inspections  Road Damage Charges  State Road Maintenance  Recreation Fees  Planning Fees  General Fund Administrative Charges  Internal Service Fund Charges

 Grants  State Revenue Sharing  Local Government Half-Cent Sales Tax Program  County Business Tax Receipts  Alcoholic Beverage License Tax

 Building Permits  Solid Waste Franchise Fees  Engineering Permits  Impact Fees ◦ Water and wastewater ◦ Transportation ◦ Parks ◦ Fire ◦ School (remitted to Flagler County Schools)  Special Assessments ◦ Old Kings Road

 Ad Valorem (Property) Taxes  Local Option Fuel Tax ◦ 1 to 6 cents ◦ 1 to 5 cents ◦ 9 th cent  Insurance Premium Tax ◦ Volunteer Firefighters’ Pension  Discretionary Sales Surtaxes ◦ Local Government Infrastructure Surtax ◦ Small County Surtax

 Utility Service Taxes ◦ Electricity ◦ Water ◦ Gas ◦ Propane  Communications Services Tax ◦ 5.22%  Local Business Tax

 Just (Market) Value  Assessed Value  Exempt Value  Taxable Value  Amendment 10 (Save Our Homes) Differential

Taxes are hurting a lot of people and they will no longer be able to live here especially the retired. I have been in Palm Coast for nearly 10 years and have to maintain my home by myself and if everything keeps going up pretty soon you will have more people moving out of this city because we can't afford to live here anymore.

Fiscal Year Millage Rate#1#2#3# $ 631$ 834$ 798$ 33, ,03030, ,20233, ,21231, ,32828, ,12131, ,06335, ,666

TAX REVENUES Ad Valorem, Sales, Gas, Communications, Local Business Tax, Solid Waste Franchise Fee, State Revenue Sharing, State & Federal Grants, etc. City Receives $460 a year per resident

Each Resident Pays $39 a month in taxes WHAT THEY PAY FOR Code enforcement, Fire & Rescue services, additional Law Enforcement, Streets (including maintenance and resurfacing), Parks, Sidewalks & Bikepaths (including maintenance and construction), indirect costs, and others.

“The great majority of mankind are satisfied with appearances, as though they were realities, and are often even more influenced by the things that seem than by those that are.” --Niccolo Machiavelli

City Council Meeting Presentations

 Part I – Regulations and Terminology May 17, 2011  Part II – Revenues June 7, 2011  Part III – Fund Descriptions June 21, 2011  Part IV – Prior Year Budget Reductions July 5, 2011

City Council Meeting June 21, 2011

 Governmental ◦ General fund ◦ Special revenue funds ◦ Capital project funds  Proprietary ◦ Enterprise funds ◦ Internal service funds  Fiduciary ◦ Trust funds ◦ Agency funds

 Agency funds ◦ Coquina Coast Cooperative Fund  Trust funds ◦ Volunteer Firefighters’ Pension Fund

 Internal service funds ◦ Fleet Management Fund ◦ Health Insurance Fund  Enterprise funds ◦ Information Technology & Communications Fund ◦ Tennis Center Fund ◦ Golf Course Fund ◦ Building Permits and Inspections Fund ◦ Stormwater Management Fund ◦ Solid Waste Fund ◦ Utility Fund  Utility Capital Projects Fund

 Capital project funds ◦ Capital Projects Fund  Special revenue funds ◦ CDBG Fund ◦ Police Education Fund ◦ Police Automation Fund ◦ Disaster Reserve Fund ◦ Recycling Revenue Fund ◦ Streets Improvement Fund

 Special revenue funds ◦ Park Impact Fee Fund ◦ Fire Impact Fee Fund ◦ Transportation Impact Fee Fund ◦ Development Special Projects Fund ◦ Neighborhood Stabilization Fund ◦ Neighborhood Stabilization 3 Fund ◦ Old Kings Road Special Assessment Fund ◦ SR100 Community Redevelopment Fund

 General Fund ◦ City Council ◦ Administration  City Manager, Community Relations, Purchasing and Contracts Management, Economic Development, City Clerk, Human Resources ◦ Financial Services ◦ Community Development  Planning, Code Enforcement ◦ Fire & Rescue Services ◦ Law Enforcement ◦ Public Works  Streets & Drainage, Facilities Maintenance, Parks/Facilities ◦ Engineering ◦ Recreation/Athletics ◦ Non-Departmental

City Council Meeting July 5, 2011