1. Pasco County “Budget 101” OFFICE OF MANAGEMENT & BUDGET

2. Office of Management & Budget OFFICE OF MANAGEMENT & BUDGET Overview of Department The Budget Cycle Fund Accounting FY 2015 Budget Overview ◦ Fund Balance ◦ Reserves Penny for Pasco Interfund Transfers

3. Overview of Department OFFICE OF MANAGEMENT & BUDGET Analyze & develop budget for the entire County under the Board of County Commissioners purview. Generate & oversee financial policies such as debt, investment, and reserve. Budget of $4,173,994 ◦ ~$670,000 allocated to Salaries & Benefits ◦ ~$1.6 million for payments to Juvenile Justice ◦ ~$1.2 million for payments to other Governments ◦ $500,000 for County Audit 9 full-time positions

4. The Budget Cycle OFFICE OF MANAGEMENT & BUDGET Oct. 1 Dec.- Jan. Jan.- Mar. Feb.Mar. Apr.- Jun. Jul.Aug.Sep. New Fiscal Year Forecast Update Strategic / Business Plans Targets & Budget Guidelines Submit Budget to OMB Budget Negotiation Meetings Proposed Budget to BCC BCC Work Sessions & Stakeholder Meetings Public Hearings to Adopt Budget

5. Budget Requirements A balanced budget must be adopted where revenues must equal expenses - Florida Statute 129.01(2)(b) All revenues that are projected, such as property taxes, must be budgeted at 95% of the anticipated amount in order to avoid over-estimating revenues. Known revenue sources, such as grants or contracted amounts, can be budgeted at 100%. In addition, funds left-over from the prior year (fund balance) must be budgeted at 100% – Florida Statutes 129.01(2)(b) and 200.065(2)(a) Reserves for contingencies should not exceed 10% of the total appropriations. Reserves for funds left-over from the prior year must not exceed 20% of the total appropriations – Florida Statute 129.01(2)(c) A very specific process must be adhered to in order to keep citizens notified (mailings, newspaper advertisements, and public hearings) regarding the steps to adopt the property tax rate. This is known as the TRIM process. OFFICE OF MANAGEMENT & BUDGET

6. TRIM Process TRIM – Truth In Millage Florida law that provide for public input and for governing bodies of taxing authorities to state specific reason for proposed changes in taxes and the budget Taxing authorities are required to follow Chapter 200 of the Florida Statutes, which governs TRIM - strict timeline and requirements for compliance Failure to meet TRIM requirements will result in the loss of revenue sharing for the taxing authority – FY 2016 approximately $9.7 million OFFICE OF MANAGEMENT & BUDGET

7. Fund Accounting Fundamental purpose of a fund is fiscal control Each fund functions independently and receives revenues from a different source and spends money for different purposes If a fund receives more in revenue than it spends, the fund balance increases A surplus in one fund may not be available to offset a shortfall in another ◦ Example: A surplus in the Penny for Pasco capital fund can not be used to provide raises to employees in the General Fund  Pasco county has 82 funds in the FY 2016 Budget OFFICE OF MANAGEMENT & BUDGET

8. Types of Funds General Fund – where property tax revenue is deposited and appropriated to most general operations (Sheriff, Parks, Libraries, etc.) Special Revenue – primarily grants Debt Service – paying loans back Capital Projects Enterprise – Utility Services Internal Service – Fleet & Risk Management  Pasco county has 82 funds in the FY 2016 Budget OFFICE OF MANAGEMENT & BUDGET

9. FY 2016 Budget (net of interfund transfers) 9 OFFICE OF MANAGEMENT & BUDGET Budget% of Total Operating$ 457,493,57434.6% Capital319,700,89324.2% Debt Service40,605,2633.1% Reserves505,877,42938.1% Total$1,323,677,159100.0%

10. Ad Valorem Millage Rates 10 OFFICE OF MANAGEMENT & BUDGET

11. Property Taxable Value History Beginning the Recovery!! 11 OFFICE OF MANAGEMENT & BUDGET

12. FY 2016 Budget Revenues OFFICE OF MANAGEMENT & BUDGET

13. Fund Balance/Reserves Fund Balance ◦ Why such a large part of our budget? ◦ Represents the excess revenues over expenditures from the prior year ◦ It does include restricted reserves OFFICE OF MANAGEMENT & BUDGET

14. FY 2016 Budget Expenditures OFFICE OF MANAGEMENT & BUDGET

15. Fund Balance/Reserves Reserves ◦ How is it different from Fund Balance? ◦ It does include restrictions ◦ How does it relate to the type of fund? - Refer to Budget Handout #1 OFFICE OF MANAGEMENT & BUDGET

16. Penny for Pasco Penny for Pasco is a local discretionary sales surtax (local option sales tax) authorized by Florida Statute, Chapter 212 On March 9, 2004, voters approved a referendum on a one percent (one cent) infrastructure surtax ◦ In effect from January 1, 2005 to December 31, 2014 ◦ Ordinance No. 03-39: Allocation  50% infrastructure  25% acquisition of environmentally sensitive lands for conservation purposes and/or to protect the County’s natural resources  20% Public Safety infrastructure  5% other public infrastructure OFFICE OF MANAGEMENT & BUDGET

17. Penny for Pasco On November 6, 2012, voters approved by referendum to extend the Penny for Pasco Effective date January 1, 2015 – December 31, 2024 Ordinance No. 12-16: Allocation ◦ 20% for improving local economy through incentivizing economic development ◦ 20% Public Safety Infrastructure ◦ 20% acquisition of environmentally sensitive lands for conservation purposes and/or to protect the County’s natural resources ◦ 40% transportation infrastructure  Please refer to 2015 – 2024 Penny for Pasco project list – Budget Handout #3 OFFICE OF MANAGEMENT & BUDGET

18. Interfund Transfers Amounts transferred from one fund to another fund Deducted from the total County operating budget to calculate “net” budget Includes items such as ◦ Grant match ◦ Interfund charges for services ◦ Debt Service ◦ CIP subsidy Road and bridge maintenance  Please refer to Interfund Transfers Examples – Budget Handout #4 OFFICE OF MANAGEMENT & BUDGET