1. Inaugural Extension Council Conference
March 4, 2017

2. Fiscal Law & Policy
2017 Iowa Extension Council Association Annual Conference Gene Mohling, Regional Director Region 15

3. Presentation includes:
Fiscal Oversight
Role of Council Members
Tax Levy for Tax Sub-fund, Tort & Unemployment
IDOM Site-Property Values, Archive, Submit Budget
Amending Your Budget
Time Table
Chart of Accounts
Property Classes & Taxing Authorities, Productivity
Questions

4. From Section 2.3 of “your” fiscal Policy Public Funds, as defined in Chapter 12C.1 of the Code of Iowa, are those funds owned by a public entity such as a County Extension District. This includes both tax and non-tax monies. All monies generated by users of the district entity are owned by the district, not the user, and are under the control of the local Extension Council.

5. All public funds are the legal responsibility of the Extension Council
All public funds are the legal responsibility of the Extension Council. Legal responsibility assigned by law cannot be transferred by Extension Council action.

6. All public funds have the same legal requirements for accounting, reporting, auditing, proper signatures, segregation of duties, publishing, bonding, investing and uniform financial accounting procedures.

7. Iowa Code 176A.8.2. To serve as an agency of the state and to manage and transact all of the business and affairs of its district and have control of all of the property acquired by it and necessary for the conduct of the business of the district for the purposes of this chapter.

8. Revenues -- Actuals FYE 2016
Total State
Mean
Median
Maximum
Minimum
Total Tax Revenue
61.2%
67.1%
70.1%
95%
28%
Other Revenue
2.1%
1.9%
1.2%
12% 0%
Program Fee Revenue
21.9%
20.6%
18.6%
66% 3%
Grant & Contract Revenue
14.8%
10.4%
4.1%
61%
Total Revenue all Sources
100.0%
100%

9. Extension Law Taxation Caps FY 17 & 18
The Double Cap Issue:
2010 Population
Dollar Cap Increases Each Year by
Levy Rate
FY 2017
FY 2018
Less than 30,000
$6,000
0.3000
$ ,000
$ ,000
30,000 to 49,999
$7,000
0.2025
$ ,000
$ ,000
50,000 to 89,999
$9,000
0.1350
$ ,500
$ ,500
90,000 to 199,999
$15,000
$ ,000
$ ,000
More than 200,000
$25,000
0.0500
$ ,000
$ ,000

10. Tax Law – Effective Valuations:
Translates into the aggregate District Taxable Valuation needed to avoid the double cap, the Levy cap:
FY 2017
FY 2018
Less than 30,000
0.3000
$ ,000,000
$ ,000,000
30,000 to 49,999
0.2025
$ 1,343,209,877
$ 1,377,777,778
50,000 to 89,999
0.1350
$ 2,566,666,667
$ 2,633,333,333
90,000 to 199,999
$ 4,000,000,000
$ 4,111,111,111
Greater than 200,000
0.0500
$ 16,000,000,000
$ 16,500,000,000

11. Where Do Districts Stand in FY17 Tax Revenue?
59 Districts currently have a single cap - $ only
41 Districts now have the “double cap” – both $ and levy cap
22 of those districts can not raise even 75% of the dollar cap
10 of those districts can not raise even 50% of the dollar cap
Another 12 Districts vulnerable to levy cap within 3 years if no significant valuation changes in their county
Almost all of the Districts with these double cap challenges are in the “below 30,000 population bracket” with majority of counties below 11,000 in population

12. Tort & Unemployment Subfunds
Districts qualify for the funding when $ or mil rate caps are reached
Resources are restricted for use for in these expense lines including carryover
Expense lines can be negative at year end for these 2 subfunds; if negative balance, levy funds in next cycle
Tort subfund covers General & Excess Liability, Auto, D&O, Professional, and Employee Dishonesty

13. Tort Liability & Unemployment

14. Iowa Department of Management Web Site https://dom. iowa

16. Property Valuations

17. Must be filed on or before May 15, follows public hearing process
for notification days prior to the hearing.....

18. Amending Current Year Budget
The public hearing and budget amendment process MUST be completed and filed before your expenses exceed the budget limit that was previously approved. Districts have until May 15 of the current budget year to hold a public hearing and file the amended budget documents. The hearing notice must be published days before the date of the hearing.

20. Time Line Nov.-Dec. Develop draft budget January- IDOM entry, modify/accept estimate, set hearing date, publish days before hearing February- hold hearing, adopt budget on-line March 15-finish filing documents

21. Ag Fee Exp - PPAT
Payroll - Office Assistants

22. Summary on Tax Revenues
1/3 ---of the counties levy 100% for Extension Education fund as well as levy for either Tort, Unemployment, or both 1/3 ---of the counties levy 100% of the Extension Education fund but did not levy for Tort Liability fund or the Unemployment Compensation fund this past year 1/3 ---of the counties did not levy to their first cap -- $600,000 left just in the Extension Education fund

23. “Tax” Expenses – Actuals FY16
District Expenses as a Percent of Tax Sub-Fund Revenue
Mean
Median
Maximum
Minimum
Standard Deviation
Personnel Expense
72.4%
71.6%
109%
44%
12.4%
Facility Expense
9.9%
8.7%
42% 0%
6.3%
General Office Expense
12.8%
12.1%
24% 7%
3.8%
Non-Fee Expense
2.9%
1.3%
23%
4.3%
Residual: Net Gain or Loss
2.0%
4.1%
-35%
10.7%
Note: Tax sub-fund includes interest, rental, resale & other revenues

24. Iowa Property Tax by Property Class FY16/17 = $5
Iowa Property Tax by Property Class FY16/17 = $5.463 billion (Jeff Robinson, Iowa Legislature Fiscal Services)

25. Iowa Property Tax by Taxing Authority FY16/17 = $5
Iowa Property Tax by Taxing Authority FY16/17 = $5.463 billion (Jeff Robinson, Iowa Legislature Fiscal Services)

26. Agricultural Productivity
Agricultural property is not assessed on its market value. Instead, a productivity value is calculated based on the net earning capacity of the land.
Net earning capacity for productivity purposes means the landlord share of crop revenue, minus the expenses of growing the crop.
Productivity is calculated county-by-county. The assessed value of individual properties within the county is set by the assessor based on the total value of the ag property in the county and the soil conditions and other factors of individual properties.
The annual net revenue per acre is calculated on a five year average and the average is then capitalized at a statutory rate of 7.0%.
A county with a five-year per acre revenue of $150, divided by 7.0%, would have an average productivity value of $2,143 per acre.
Any agricultural rollback is then applied to the county number, so if the rollback for ag property was 60.0%, the taxed value per acre would equal $1,286.

27. Thank you for attending today. Questions. mohling@iastate
Thank you for attending today! Questions?