1. County Government Funding & Options Centra In-Service May 10, 2011 Notie Lansford, Extension Economist Program Leader, County Gov. Training Program, CTP

2. 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

3. 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

4. County General Fund Revenue FY 2008-2010

5. County Highway Fund Revenue, FY 2008-2010

6. County General Fund Historically, the fund paying for most courthouse functions

8. Avg. FY ’04 Ad Valorem Levy 12.17%

9. 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 0.080 Tax Due $ 688

10. 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

11. 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. 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

13. 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

14. General Fund Sources 5. Transfer Payments From State, To Counties Motor Vehicle License & Registration Fees ◦ Excise Tax 68 O.S. 2000 § 2103 - … ◦ Annual Registration 47 O.S. 2000 § 1132 - … ◦ 0.83% - County General Fund

15. 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, 2822-2823

16. 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. §§ 215.36 - 215.38 The state shall provide for all other expenses through the District Attorneys Council. However, the county pays these expenses and is reimbursed monthly.

17. 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. §§ 2-118 - 2-121

18. 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

19. County Highway (Road) Fund

23. 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.

24. 1.85 cents for courthouse improvemen ts, roads, sheriff, and general

25. 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

26. 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

27. 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

28. 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

29. 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

30. Resources Publications: http://agecon.okstate.edu/faculty/publications_results.asp?page=1 Fact Sheets: 1. Ad Valorem Taxes 2. Duties & Responsibilities of Elected County Officials 3. Duties & Responsibilities of Non-Elected County Officials 4. … http://www.rd.okstate.edu/RDPublications.htm#D 1. Resources Publications: http://agecon.okstate.edu/faculty/publications_results.asp?page=1 Fact Sheets: 1. Ad Valorem Taxes 2. Duties & Responsibilities of Elected County Officials 3. Duties & Responsibilities of Non-Elected County Officials 4. … http://www.rd.okstate.edu/RDPublications.htm#D 1. Abstract of County Government General, Highway, and Special Revenue Funds in OK (Fiscal Year 2008-2009) 2. Summary - County Sales, Use, & Lodging Taxes, FY 09 3. "Oklahoma Ad Valorem Mill Levies, Fiscal Year 2009“ OCES CTP Training – http://agecon.okstate.edu/ctp/ Courses, Handbooks, Technical Assistance http://agecon.okstate.edu/faculty/publications_results.asp?page=1 http://www.rd.okstate.edu/RDPublications.htm#D http://agecon.okstate.edu/faculty/publications_results.asp?page=1 http://www.rd.okstate.edu/RDPublications.htm#D Abstract of County Government General, Highway, and Special Revenue Funds in OK (Fiscal Year 2008-2009)Summary - County Sales, Use, & Lodging Taxes, FY 09"Oklahoma Ad Valorem Mill Levies, Fiscal Year 2009“

31. Other Sources of Information Oklahoma Tax Commission ◦ http://www.oktax.state.ok.us/oktax/ http://www.oktax.state.ok.us/oktax/  Publications State Auditor and Inspector ◦ http://www.sai.state.ok.us/ http://www.sai.state.ok.us/  Audit Reports County Training Program (CTP) ◦ http://www.agecon.okstate.edu/ctp/ http://www.agecon.okstate.edu/ctp/  Budget Process, 2 day class  Building Your Budget, 1 day class

32. CTP, OSU Contacts Notie Lansford, Extension Economist ◦ (405) 744-6555 or notie.lansford@okstate.edunotie.lansford@okstate.edu Ann Embree, Local Government Specialist ◦ (405) 744-9838 or ann.embree@okstate.eduann.embree@okstate.edu Judy Rudin, Communications Specialist ◦ (405) 744-9812 or judy.rudin@okstate.edujudy.rudin@okstate.edu Sherri Schieffer, Local Government Specialist ◦ (405) 744-9828 or sherri.schieffer@okstate.edusherri.schieffer@okstate.edu Suzanne Spears, Local Government Specialist ◦ (918) 762-3253 or sspears@hrblock.comsspears@hrblock.com Glenda Emerson, Local Government Specialist, glenda.emerson@okstate.edu glenda.emerson@okstate.edu Gloria Cook (405) 744-6160, ctp@okstate.eductp@okstate.edu