1. Fund Accounting & Revenue Overview
Tuesday, April 25th, 2017
Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMA
Finance Director
Lina Williams
Budget Coordinator
Helena Alves, CIA, MBA
Chief Accountant

2. Budget Preparation Timeline
January - March
First Quarter Review
Annual Financial Audit
Presentation of Annual Progress Report
Survey Results to City Council
Annual Update of the Strategic Action Plan
April
Revise 10 Year Infrastructure Plan
Year to Date Budget Results Presentation
Fund Accounting & Revenue Presentation
Second Quarter Review
Departments Begin FY 2018 Budget Preparation

3. Budget Preparation Timeline
May – June
Long Term Financial Planning Presentation
Property Tax Review Presentation
July - August
General Fund Budget Workshop
Adopt Maximum Millage Rate (August 4th deadline)
Third Quarter Review
Proprietary, Special Revenue & Capital Funds Budget Workshop
Final Proposed Budget Presentation

4. Budget Preparation Timeline
September
Public Hearing to Tentatively Adopt Millage Rate & Budget
Public Hearing to Adopt Final Millage Rate & Budget
October – December
FY 2017 Year End Close-out
End of Year Review with Departments

5. Presentation Overview
Regulatory Authorities
Classification of Funds
Revenue Overview
Restricted vs. Unrestricted

6. Regulatory Authorities
Governmental Accounting Standards Board (GASB)
Exposure Drafts
Statements
Technical Bulletins
Accounting and Financial Reporting Guidance
Federal Government
(IRS, SEC, GAO)
Payroll taxes
Debt issuance
Grant compliance
1099 reporting
Yellow Book
State Government
(Statutes, Department of Revenue, Rules of the Auditor General)
Truth in Millage (TRIM)
Annual reporting requirements

7. Fund Accounting A fund is a segregated accounting entity (checkbook)
Tracks activities according to regulations, restrictions, or limitations.
Revenue, restricted for a specific purpose, cannot be used for general operations
Funds are divided into various types according to legal restrictions or their uses.

8. DO NOT TOUCH Restricted Fund
Revenue Restrictions
Must comply with legal and external requirements.
Small County Surtax
Capital projects
Utility Revenues
Operation and expansion of utility system
Impact Fees
Infrastructure capacity improvements related to growth
Grants
Specific programs/projects
DO NOT TOUCH Restricted Fund

9. Fund Types Governmental Proprietary Fiduciary General fund
Special revenue funds
Capital projects funds
Debt service funds
Permanent funds
Proprietary
Enterprise funds
Internal services funds
Fiduciary
Trust funds
Agency funds

10. Fund Classifications Proprietary Funds
Governmental Funds
Primarily supported by taxes
Proprietary Funds
Primarily supported by user fees
Fiduciary Funds
Not the City’s money

11. Fund Classifications Proprietary Funds
Governmental Funds
General Fund
Capital Projects Fund
Special Revenue Funds
Proprietary Funds
Utility Fund
Stormwater Fund
Building Fund
Fiduciary Funds
VFF Pension Fund

12. Fund Classifications Proprietary Funds
Governmental Funds
Administration & Finance
Public Safety (Fire & Police)
Community Development (excluding Building)
Streets & Parks Maintenance
Parks & Recreation
Proprietary Funds
Utility
Stormwater
Building
Information Technology
Solid Waste
Fleet
Facilities

13. Fund Balance Definition Use Policy
Accumulated revenues over expenditures
Use
For emergencies or one time expenditures (capital project)
Not meant to fund continuing operations
Policy
General Fund
Utility Fund
Stormwater Fund
Solid Waste Fund
Disaster Reserve
Self Insured Fund
Fleet Fund

14. Revenue Classifications
Taxes
Permits, Fees and Special Assessments
Inter-governmental Revenue
Charges for Services
Judgments Fines and Forfeits
Miscellaneous Revenues & Other Sources

15. 2017 Revenues by Source
THIS IS OUR REVENUES BY SOURCE FOR THE FY 2017 BUDGET – YOU CAN SEE AD VALOREM TAXES IS ONLY 11% OF TOTAL REVENUE. CHARGES FOR SERVICE IS OUR LARGEST REVENUE SOURCE.

16. Discretionary Sales Surtaxes (Small County Surtax)
Ad Valorem Tax (Property Tax)
Based on taxable value of property
Considered general revenue
Local Option Fuel Tax
Currently 6 cents per gallon on fuel purchased in Flagler County
Distributed per Inter-local agreement based on road miles
Restricted to transportation expenditures
Currently allocated to the Streets Improvement Fund
Discretionary Sales Surtaxes (Small County Surtax)
Replaced Local Government Infrastructure Surtax
.5 percent of the 7% sales tax collected in Flagler County
Pursuant to an ordinance enacted by Flagler County
Currently allocated to Capital Projects Fund

17. Communications Services Tax
Taxes
Communications Services Tax
Applies to telecommunications, video, satellite and related services
Rate of 5.22%
Currently allocated to General Fund
Business Tax Receipt
Local
Considered general revenue
Public Service Taxes (Not currently in use)
Electricity
Water
Natural Gas
Propane

18. Intergovernmental Revenue
State Revenue Sharing
Portion of State sales and use tax collections & one-cent municipal fuel tax
(a)76.20% Sales & Use Tax collections
(b) 23.80% Fuel Tax and User Fees collections
Currently allocated to General Fund (a) & Streets Improvement Fund (b)
Local Government Half-Cent Sales Tax
Distributes a portion of the state 6% sales tax
Taxable sales within Flagler County
Currently allocated to General Fund
Fire Insurance Premium Tax
Volunteer Firefighters’ Pension
Other
Grants
County Business Tax Receipts
Alcoholic Beverage License tax

19. Permits, Fees, Special Assessments
Franchise Fees
Solid Waste
Natural Gas
Utility (not in use)
Special Assessments
Old Kings Road
Code Nuisance

20. Charges for Service Utility Fees Impact Fees Other Fees
Water and Sewer
Solid Waste
Stormwater
Impact Fees
Water and Wastewater
Transportation
Parks
Fire
School (remitted to Flagler County Schools)
Other Fees
Annual Fire Inspections
State Road Maintenance
Recreation Fees
Planning Fees
Building Permits & Inspections

21. Judgements, Fines and Forfeitures
Citations & Violations
Traffic Citations
Local Ordinance Violations
Parking Tickets
Code Fines
Animal Control

22. Other Sources Inter-fund Transfers Debt Proceeds Internal Charges
Payment-In-Lieu-of-Taxes (PILOT)
Tax Increment for the CRA
Debt Proceeds
Loans
Bonds
Internal Charges
Fleet Replacement & Maintenance
Facilities Maintenance
IT Allocation

23. Restricted Revenue Sources State Restricted
Fire Insurance Premium Tax
Volunteer Firefighters pension
Fuel Tax Refund
Construction & maintenance of roads
Police Education
Law Enforcement
Building Permit & Inspection Fees
Applied solely to BPI costs
Local Option Fuel Tax
Transportation expenditures

24. Restricted Revenue Sources State Restricted
State Revenue Sharing (b) 24.86%
Transportation expenditures
Tax Increment Revenue (CRA)
Per CRA plan
Impact Fees
Capacity improvements
Special Assessments
Purpose of assessments

25. Restricted Revenue Sources Other
Water & Sewer Charges
Restricted by Bond Covenants & City Council
Used to maintain system & debt service
Small County Surtax
Restricted by Flagler County Ordinance
Used for construction & improvement of public facilities, operating expenses etc…
Stormwater Fee
Restricted by loan covenants & City Council
Disaster Reserve
Restricted by City Council
Used for costs related to a disaster

26. Unrestricted Revenue Sources
Unrestricted revenue can be used for general purpose and at the discretion of the governing body
In Use
Ad Valorem Tax
Alcoholic Beverage License
Business Tax Receipts
Communication Services Tax
Natural Gas Franchise Fee
Half-Cent Sales Tax
Solid Waste Franchise Fee
State Revenue Sharing (a) 76.20%
Not Currently in Use
Utility Franchise Fee
Public Service (Utility) Tax

27. Looking Ahead May 15th Long Term Financial Planning Presentation
June 13th Property Tax Presentation
July 11th Budget Workshop - General Fund
July 18th Adopt Maximum Millage Rate (August 4th deadline)
August 8th Budget Workshop – Proprietary Special Revenue Funds & Capital Funds
August 29th Final Proposed Budget Presentation
September: Public Hearing to adopt tentative millage rate and Budget & Final Public Hearing to adopt final millage and budget