1. Finance Department Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMA Finance Director

2. Overview Regulatory Authorities Fund Accounting What is fund accounting? What is a fund? Examples of funds Revenues Classifications Total City Revenues Unrestricted & Restricted Tentative Budget Calendar

3. Regulatory Authorities  Governmental Accounting Standards Board – GASB  Exposure Drafts  Statements  Technical Bulletins  Accounting and Financial Reporting Guidance  Federal Government  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)  Grant compliance  Annual reporting requirements

5. Fund Accounting What is fund accounting? Fund accounting is a system for segregating financial resources to ensure and demonstrate legal compliance with restrictions or other special purposes. The City is prohibited from using funds legally restricted for a specific purpose in general operations. What is a fund? A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances and changes therein, which are segregated for the purpose of conducting specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Funds are divided into various types according to the legal restrictions imposed upon them or by their uses.

6. Fund Accounting Restrictions: Must Comply with Legal and External Requirements Some Examples:  Infrastructure 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

7. Fund Accounting Funds  Governmental ◦ General fund ◦ Special revenue funds ◦ Capital projects funds ◦ Debt service funds ◦ Permanent funds  Proprietary ◦ Enterprise funds ◦ Internal services funds  Fiduciary ◦ Trust funds ◦ Agency funds Fund Balance (reserve) Excess revenues over expenditures Emergencies or one time expenditures Not meant to fund continuing operations Fund Balance Policy General Fund Utility Fund Other Funds

8. Governmental Funds  General Fund  City Council  Administration City Manager, Community Relations, Purchasing and Contracts Management, Economic Development, City Clerk, Human Resources  Financial Services  Community Development Planning, Code Enforcement  Fire & Rescue Services  Law Enforcement  Contract with Sheriff  Public Works Streets & Drainage, Facilities Maintenance, Parks Facilities  Engineering  Recreation/Athletics  Non-Departmental

9. Governmental Funds  Capital Projects Fund  Special Revenue Funds  CDBG Fund  Police Education Fund  Police Automation Fund  Disaster Reserve Fund  Special Events Fund  Streets Improvement Fund  Park Impact Fee Fund  Fire Impact Fee Fund  Transportation Impact Fee Fund  Development Special Projects Fund  Neighborhood Stabilization Fund  Old Kings Road Special Assessment Fund  SR100 Community Redevelopment Fund  BAC Fund

10. Proprietary Funds  Internal Services Funds  Fleet Management Fund  Health Insurance Fund  Enterprise Funds  Information Technology & Communications Fund  Tennis Center Fund  Golf Course Fund  Building Permits & Inspection Fund  Stormwater Management Fund  Solid Waste Fund  Utility Fund Utility Capital Projects Fund

11. Fiduciary Funds  Agency Funds  Coquina Coast Cooperative Fund  Trust Funds  Volunteer Firefighters’ Pension Fund

13. Revenue Classifications  Taxes  Permits, Fees and Special Assessments  Intergovernmental Revenue  Charges for Services  Judgments, Fines and Forfeits  Miscellaneous Revenues  Other Sources

14. Total City Revenues Fiscal year 2013

15. Taxes  Ad Valorem (Property) Tax  Local Option Fuel Tax Currently $.07 per gallon  Insurance Premium Tax Volunteer Firefighters’ Pension  Discretionary Sales Surtaxes Local Government Infrastructure Surtax Small County Surtax  Public Service Taxes (Not in use) Electricity Water Natural Gas Propane  Communications Services Tax 5.22%  Local Business Tax

16. Permits, Fees and Special Assessments  Franchise Fees Solid Waste Natural Gas Utility (not in use)  Engineering Permits  Impact Fees Water and Wastewater Transportation Parks Fire School (remitted to Flagler County Schools)  Special Assessments Old Kings Road Code Nuisance

17. Intergovernmental Revenue  Grants  State Revenue Sharing  Local Government Half-Cent Sales Tax Program  County Business Tax Receipts  Alcoholic Beverage License tax

18. Charges for Services  Utility Fees Water and Sewer Solid Waste Stormwater  Annual Fire Inspections  Building Permits & Inspections Fees  State Road Maintenance  Recreation Fees  Planning Fees

19. Judgments, Fines and Forfeits  Traffic Citations  Red Light Camera Violations  Local Ordinance Violations Parking Tickets Code Fines Animal Control

20. Other Revenue Sources  Interfund Transfers Payment-In-Lieu-of-Taxes (PILOT) Tax Increment for the CRA  Debt Proceeds  Miscellaneous

21. Unrestricted Revenue Sources Ad Valorem Tax Alcoholic Beverage License Business Tax Receipts (Local Business Tax) Communication Services Tax Natural Gas Franchise Fee Half-Cent Sales Tax Solid Waste Franchise Fee State Revenue Sharing (a) 73.37% Code Enforcement Red Light – This revenue source has been allocated by City Council to the Streets Improvement Fund to be used for safety improvements. Public Service (Utility) Tax – This revenue source is currently not in use by the City. Unrestricted revenue can be used for general purpose and at the discretion of the governing body.

22. Revenue SourceRestriction Fire Insurance Premium TaxVolunteer Firefighters pension Fuel Tax RefundConstruction & maintenance of roads Police Automation/EducationLaw Enforcement Building Permit & Inspection FeesApplied solely to BPI costs Infrastructure SurtaxFinance, plan, construct infrastructure Local Option Fuel TaxTransportation expenditures State Revenue Sharing (b) 26.63%Transportation expenditures Tax Increment Revenue (CRA)Per CRA plan Impact FeesCapacity improvements Special AssessmentsPurpose of assessments Restricted Revenue Sources State Restricted

23. Restricted Revenue Sources Other TypeRestricted byUse Water & Sewer ChargesBond CovenantsMaintain system & debt & City Councilservice Small County SurtaxFlagler County OrdinanceConstruction & improvement of public facilities, operating expenses etc… Stormwater Loan CovenantsMaintain system & debt Management Fee & City Council service Disaster ReserveCity CouncilCosts related to a disaster

24.  July 2 nd Presentation on Property Taxes & Millage Rate History  July 9 th Budget Workshop - General Fund  July 16 th Establish proposed Millage Rate (TRIM rate)  July 30 th Budget Workshop - Proprietary Funds  August 13 th Budget Workshop - Special Revenue & Capital Funds  August 27 th Final Proposed budget presentation  September 4 th & 18 th (Wednesdays at 5:05pm) Public hearings to adopt millage rate resolution and budget resolution Tentative Budget Schedule