1. March 9, 2015 Budget Work Session – Revenues

2. FY2016 Revenue Projections

3. FY2016 Revenue Projections cont’d

5. Property Tax Base (Assessed Values) 20142015% Change Real Estate$1,696,444,145$1,498,654,494-11.7% Personal Property$116,172,842 0% Machinery & Tools$118,147,729 0%

6. Comparison of Funds Generated by 1¢ on the Tax Rate Countywide Estimated FY2015 Projected FY2016 Real Estate$166,828$149,016 Personal Property$11,860$11,163 Machinery & Tools$11,808$11,815 Special Taxing District for Schools Real Estate$134,354$117,904 Personal Property$9,626$9,144 Machinery & Tools$1,259$970

7. Equalization of the Personal Property Tax Due to Change in Assessed Value in CY2015 Personal Property FY2015 Budgeted NADA Clean Trade-in FY2015 Projected NADA Average Trade-in FY2016 Equalized NADA Average Trade-in % Change From FY2015 Budget Countywide Assessed Value $123,433,942$116,172,842 -5.9% Special School Taxing District Assessed Value $100,156,329$95,153,852 -5.0% General Gov’t Rate$1.65 $1.756.1% 100% Tax Collections$2,036,660$1,916,852$2,033,025-0.1% School Fund Rate$2.00 $2.105.0% 100% Tax Collections$2,003,127$1,903,077$1,998,231-0.2%

8. Equalization of the Real Estate Tax Due to Change in Assessed Value in CY2015 (Real Estate Rate Only) Real Estate FY2015 Budgeted (100% Collection Rate & No Elderly Tax Relief) FY2016 (100% Collection Rate & No Elderly Tax Relief) % Change From Prior Year Countywide Assessed Value$1,696,444,145$1,498,654,494-11.7% Special School Taxing District Assessed Value $1,385,987,815$1,188,107,562-14.3% General Gov’t Rate$0.38$0.4313.2% 100% Tax Collections$6,446,488$6,444,2140% School Fund Rate$0.44$0.5115.9% 100% Tax Collections$6,098,346$6,059,349-0.6%

9. Effects of Land Use ParcelAcres Fair Market Value Land Use Value Reduced Revenue @ $0.82 Rate Approximate Tax Effect on Real Estate Rate Agricultural26712,836$ 66,674,100$ 47,205,291$ 159,488$0.01 Horticultural328248,500195,480435- Open Space155014,020,2003,141,7857,203- Forestal48340,39697,743,90038,610,315484,618$0.03 Multiple Categories 30947,151152,325,09789,350,295516,393$0.04 1,032100,969 $ 321,011,797$ 178,503,166$ 1,168,137 $0.08 King William County Total 9.7% 10,688 57.6% 175,360

10. Other Potential Revenue Increases Planning Fees Increases ◦ Currently 21% Cost Recovery of Departmental Amounts ◦ Estimated Potential Revenues = $45,400 Building Fees Increases ◦ Currently 55% Cost Recovery of Departmental Expenses ◦ Estimated Potential Revenues = $29,820 BPOL-Professional Services ◦ $0.38 → $0.58 (per $100 of gross receipts) ◦ Could generate $11,842 in additional revenue (Designated for School Funding in FY2015) BPOL-Business Services ◦ $0.16 → $0.36 (per $100 of gross receipts) ◦ Could generate $75,000 in additional revenue (Designated for School Funding in FY2015)

11. Other Potential Revenue Increases cont’d… Water & Wastewater Connection Fees Water Rates (Usage, Late Fee, Reconnection Fee) MeterWaterWastewater SystemCombined Water & SizeSystemCountyHRSDCombinedWastewater Systems 5/8 inch $ 3,500 $ 7,750 $ 1,895 $ 9,645 $ 13,145 3/4 inch $ 5,250 $ 11,630 $ 4,830 $ 16,460 $ 21,710 1 inch $ 8,750 $ 19,380 $ 8,170 $ 27,550 $ 36,300 1 & 1/2 inch $ 15,310 $ 33,890 $ 17,260 $ 51,150 $ 66,460 2 inch $ 28,000 $ 62,000 $ 29,420 $ 91,420 $ 119,420 3 inch $ 56,000 $ 124,000 $ 63,600 $ 187,600 $ 243,600 4 inch $ 87,500 $ 193,750 $ 115,580 $ 309,330 $ 396,830 6 inch $ 175,000 $ 387,500 $ 268,250 $ 655,750 $ 830,750 SERVICE RATE SCHEDULE - WATER SYSTEM* Minimum Monthly Charge: $27.50 for 0 to 3,000 Gallons Number of Gallons for Minimum Monthly Charge: 0 to 3,000 Over 3,000 Gallons: $5.50 per 1,000 Gallons Deposit$200 Late Fee10% of past due amount or $10 Reconnection Fee$35

12. Other Potential Revenue Increases cont’d… Wastewater Rates (Usage only) SERVICE RATE SCHEDULE - WASTEWATER (SEWER) SYSTEM* Minimum Monthly Charge: $34.47 for 0 to 3,000 Gallons Number of Gallons for Minimum Monthly Charge: 0 to 3,000 Over 3,000 Gallons: $11.49 per 1,000 Gallons

13. Fund Balance Availability & Usage

14. Local Revenue Allocated to School Funding for FY2016

15. Issues Identified for Policy Discussion School Funding -Amount; Source(s); Creation and Use of Reserves Fire and Rescue -Amount; Purpose; Allocation; LODA Funding; Management/Oversight of Funds Compensation of Employees -1.7% Inflation; Compression; Overtime; Not Addressed in Requests Health Insurance Benefit -Projected County Cost without change is $837,000 in 2016; Discussion and Decision on Appropriate County Share and Coverage to be Offered Service Offerings/Levels -Fire; Rescue; Library; Parks and Recreation; Animal Control Capital Improvements -Replacement; Vehicles; HVAC; Lighting; Server; Voting Machines Audit -GFOA; CAFR; Need/Cost