1. ORANGE COUNTY BUDGET FY 07-08 Worksession Overview July 17, 2007

2. FY 07-08 Budget Property Tax Reform Budget Guidelines Worksession Agenda Worksession Summary Budget Timeline

3. FY 07-08 Budget Property Tax Reform Budget Guidelines Worksession Agenda Worksession Summary Budget Timeline

4. Property Tax Reform 2007B Special Session Legislature released property tax reform plan on June 11 Special session convened on June 12 Special session adjourned on June 14

5. Property Tax Reform 2007B Special Session Three bills passed HB 1-B SJR 4-B HB 5-B Statutory changes effective immediately Constitutional amendment to voters on January 29, 2008

6. Property Tax Reform House Bill 1-B Establishes “maximum millage” rates for counties, cities and special districts Fiscal Year 2007-08 –Roll back taxes to fiscal year 2006-07 level –Allows increase for new construction –Reduces property taxes by an additional percentage cut (3%, 5%, 7% or 9%) based on prior tax performance

7. Property Tax Reform Fiscal Year 2008-09 –Additional tax cut if constitutional amendment passes Fiscal Year 2008-09 and thereafter –Maximum millage rate equal to prior year proceeds plus new construction and personal income growth House Bill 1-B

8. Property Tax Reform Bill provides methods for overriding maximum millage rates Governments that don’t comply with statutory requirements lose their ½ cent sales tax revenue sharing from the state House Bill 1-B

9. Property Tax Reform January 29 special election Increases homestead exemption –75% of first $200,000 of home value exempt –15% from $200,001 – $500,000 of home value is exempt –$500,000 upper limit is indexed to personal income growth –Minimum exemption = $50,000 –Minimum exemption increased to $100,000 for low income seniors Allows the option to keep the “save our homes” exemption instead of the new exemption until the home is sold Proposed Constitutional Amendment

10. Property Tax Reform $25,000 tangible personal property exemption for all businesses Affordable housing and working waterfronts assessed on income approach Allows the Legislature to limit local government taxes Proposed Constitutional Amendment

11. Property Tax Reform FY 06-07 Property Tax $723 Million Budgeted

12. Property Tax Reform FY 06-07 property taxes $723Million $843Million $723Million FY 07-08 property taxes (no change in millage rate) FY 07-08 property taxes (rolled back w/ 5% cut)

13. Property Tax Reform $723Million $843Million $723Million $120M or 16.6% Increase FY 06-07 property taxes FY 07-08 property taxes (no change in millage rate) FY 07-08 property taxes (rolled back w/ 5% cut)

14. Property Tax Reform $723Million $843Million $723Million $120M or 16.6% Increase $120M or 14.2% Decrease FY 06-07 property taxes FY 07-08 property taxes (no change in millage rate) FY 07-08 property taxes (rolled back w/ 5% cut)

15. Property Tax Reform Challenges Revenue is flat O & M Expenditures are increasing –Sheriff –Corrections –Fire Rescue –Medical Examiner –Supervisor of Elections –Fuel/Utilities

16. Property Tax Reform Fiscal Year 2008-09: Additional $60 – $70 million additional tax cut if constitutional amendment passes Fiscal Years 2008-09 and thereafter: Taxes capped at prior year’s property tax level plus new construction and personal income growth

17. Property Tax Reform Budget developed using the 3% reduction formula House Bill 1-B passed on June 14 reflecting a 5% reduction Fire and Library limited to 3% reduction $8 million adjustment to budget in September from reserves Millage information presented in budget document updated based on 5% reduction for countywide millage, Sheriff MSTU, and a 3% reduction for Fire MSTU

18. Property Tax Reform Countywide5.16394.4315 (14.2%) Sheriff MSTU2.12341.8043 (15.0%) Fire MSTU2.58622.2437 (13.2%) Millage Rates Current Rate Proposed Rate % Change

19. FY 07-08 Budget Property Tax Reform Budget Guidelines Worksession Agenda Worksession Summary Budget Timeline

20. Budget Guidelines Applies to: –County departments (Excludes Public Safety, Enterprise Operations, and Grant Funded Operations) –Outside agencies –Constitutional Officers 10% cut to operating budgets 5% reduction to workforce through attrition and vacancies Hiring freeze Mayor’s Direction for Budget Cuts

21. Parks & Recreation Strategy Reduce O&M by reducing level of service for operations and programs Account for increased O&M due to new parks currently under construction Do not undertake any new parks projects where construction has not yet started Budget Guidelines

22. Complete on-going capital projects Do not undertake any new capital projects, except: –Medical Examiner Building –Animal Services Building –Supervisor of Elections Voting Equipment –Corrections Locks Capital Projects Strategy

23. Pedestrian Safety & Community Enhancements $155 M Environmental Preservation $125 M Roadway Improvements $250 M $530 Million Invest in Orange County Our Children’s Legacy Budget Guidelines

24. Pay off $20 million in short-term debt $40 million cash funding for FY 07-08 No additional debt will be issued until Constitutional Amendment is known Budget Guidelines Invest in Orange County Our Children’s Legacy

25. Top Priorities Commuter Rail Roadway Improvements GreenPLACE Budget Guidelines Invest in Orange County Our Children’s Legacy

26. Projects On Hold Roadways Pedestrian Safety –Sidewalks –Bridges –Intersections Trails Bus Shelters & Pullouts Gymnasiums & Recreation Centers StreetScape Budget Guidelines Invest in Orange County Our Children’s Legacy

27. FY 07-08 Budget Property Tax Reform Budget Guidelines Worksession Agenda Worksession Summary Budget Timeline

28. Worksession Agenda July 17, 2007 Introduction Administrative Services Growth Management Health & Family Services Community & Environmental Services ISS Convention Center Medical Benefits

29. Worksession Agenda July 18, 2007 Public Safety / Fire Rescue / Corrections Juvenile Assessment Center Public Works Utilities Parks & Recreation Fee Presentation Library

30. Worksession Agenda July 19, 2007 Constitutional Officers Economic Development Program LYNX Outside Agencies –Emergency Medicine Learning & Resource Center Green Government / Global Warming Initiatives Commuter Rail

31. FY 07-08 Budget Property Tax Reform Budget Guidelines Worksession Agenda Worksession Summary Budget Timeline

32. Worksession Summary Summary of Budget Worksessions Approval of Tentative Millage Rates Approval of Tentative Budget Approval of Budget Consent Agenda

33. FY 07-08 Budget Property Tax Reform Budget Guidelines Worksession Agenda Worksession Summary Budget Timeline

34. Property Tax Reform & Budget UpdateJune 5 Property Tax Reform UpdateJune 26 Budget Submittal to BCCJuly 11 Maximum Millage Rates ConfirmedJuly 13 Budget Worksession with BCC July 17 – 19 Notify PA of Proposed Millage Rates Aug. 4 PA Mails TRIM NoticesAug. 24 1st Budget Public Hearing – 6:00 p.m.Sept. 6 1st Library Public Hearing – 5:01 p.m.Sept. 10 2nd Library Public Hearing – 5:01 p.m.Sept. 18 2nd Budget Public Hearing – 6:00 p.m.Sept. 20 Budget Timeline

35. ORANGE COUNTY BUDGET FY 07-08 Worksession Overview July 17, 2007