1. General Government Budget Overview

2. Budget Process  Year 1  Prepare complete budget document for years one and two  Adopt budget for year one and set millage rate  Approve year two plan  Year 2  Adjustments to the plan  Set tentative millage rate  Adopt year two budget

3. General Fund  Accounts for those resources and their uses traditionally associated with government  Funded by general revenues including property taxes, licenses and permits, fines, utility taxes, GRU transfers, sales tax and state revenue sharing  Includes expenditures for all departments providing government services  Expenditures are not specifically tied to revenue sources

4. General Fund Revenues  Four revenue sources make up over 75% of General Fund revenue  General Fund transfer  Property tax  Utility Tax  Intergovernmental revenue  Growth rate of these revenues over past years declining or flat  Starting to see uptick in total revenue 4

5. General Fund Revenue

6. Utility Transfer  Proxy for what GRU would pay if they were private utility  Property tax  Franchise fee  Return on investment to stockholders  Single largest General Fund revenue source, approximately 1/3 of total budget  FY15 New Transfer Formula  Base equals FY14 GFT level as determined by prior GFT formula  Growth @ 1.5% per year  GFT reduced by biomass plant property tax revenue received  A decrease of more than $3 million

7. Property Tax  Second largest General Fund revenue source at 23% of budget  Gainesville faces unique challenges to ad valorem revenue generation  High percentage of government and public education owned property creates tax base with the lowest percentage of taxable property in state

8. Property Taxes  Millage Rate  Tax rate set by the taxing authority each year  Rate per $1,000 value  FY16 rate is 4.5079

9. Property Taxes  Taxable Value  Determined by the Property Appraiser  Various exemptions  Up to $50,000 - Homestead Exemption  $25,000 – Senior Low Income Homestead Exemption  $500 - Widows/Widowers, Disability and Blind Persons  $5,000 - Veteran Disability  Portability  Ability of homeowners to transfer their Save Our Homes benefit up to $500,000 to a new homestead

10. Taxable Property Value

11. Millage Rates

12. Taxable Property

13. Utility Tax  Revenues are generated through taxes levied on electric, water, and natural gas utility customers who reside within City’s corporate limits  Traditionally a function of three variables: number of customers, consumption per customer, and price 13

14. Utility Tax

15. Intergovernmental Revenues  Account for 12% or $12.6M of revenue budget  Half Cent Sales Tax and State Revenue Sharing is $10.2M  Dramatically effected by recession  FY09-FY13 are approximately $6.10M or 12.4% less than FY04-FY08  FY18 is when we return to same level as our peak in FY06  Recovery is beginning and projections include about 3% growth each year based on a combination of population growth and CPI growth

16. Fire Assessment  Implemented in FY11 and must be approved every year through separate resolution  $78 per factored fire protection unit  $5.4 million in revenue each year  Starting in FY16, the City will pay the fire assessment on behalf of religious and charitable organizations ~ $120,000

17. General Fund Expenditures

18.  General Government service delivery intensive organization  Almost 60% of expenditures are personal services  More than 50% of expenditure budget goes to Public Safety

19. General Fund Expenditure Budget

20. General Fund Expenditures  From FY08-FY12, cuts to General Fund budget totaled $15M  $9.5M in departmental cuts  $5.6M in city-wide cuts and organizational efficiencies  81 Full Time Equivalent position reductions  FY13-14  Relatively stable  Implemented Pension reform  FY15 - another $2.2M in expenditure reductions  13 Full Time equivalent position reductions  No raises budgeted for employees

21. General Fund Expenditures  FY16  Added some new programs and pilot programs into budget including:  New service level for RTS operations  Development Services Center project  Bike Share Program  Sweetwater Wetlands Park

22. Questions