Okaloosa County BOCC — April 9, 2013 (meeting #1123) — reading text

-0.1 $16,174,789,111 -7.1 $273,899,521 -57.7 Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) 2008 181,880 -0.1 $17,410,630,993 -7.4 $647,210,535 -19.8 2007 182,760 -0.1 $18,806,840,352 5.1 $807,308,507 18.8 2006 183,587 0.2 $17,899,368,086 31.8 $679,764,247 47.9 2005 183,192 1.2 $13,576,903,661 26.1 $459,612,742 37.8 2004 181,008 2.0 $10,767,916,378 12.0 $333,519,672 9.7 2003 177,372 1.3 $9,618,024,001 8.2 $304,065,557 -1.1 General Fund Balance. Undesignated fund General Fund Balance as a % of Expenditures balances are measures of reserves at fiscal year 24.1 25.0 end and are indicators of how well Okaloosa 22.6 County will be able to withstand an emergency or a revenue shortfall. In 2003 and 2004, the General 20.7 20.6 Fund fund balance was at its lowest point in many 20.0 years due to storm activity occurring during that time. In light of the annual audit analysis and the 16.9 Auditor General’s annual Financial Condition 14.7 Assessment process, the consistent buildup and 15.0 analysis of this fund balance percentage is critical. Percentage The 2008 fund balance peak and the buildup of 10.9 fund balance leading up to that peak was a concentrated effort during the positive economic 9.1 10.0 times and the locally positive increasing assessed 8.4 8.2 valuation of the County. That buildup has played a vital role during these difficult and declining 5.0 economic times. Over the past ten years the average percentage has been approximately 15.6% or almost two months of operational emergency funds available. Current levels have increased 0.0 slightly over last year, due to improving economic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 times and currently maintain about forty days of operational emergency funds available. Page 3 Packet Pg. 10  1.b Local Government Revenue General Information The ability of local governments to raise revenue for their operations is narrowly constrained by the State Constitution. No tax shall be levied except in pursuance of law. No State ad valorem taxes shall be Okaloosa County Taxes to Total Budget levied upon real estate or tangible personal property. All other forms of taxation shall be $350,000,000 Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) $304,080,099 preempted to the State except as provided by $300,000,000 $280,421,796 general law (Article VII, section 1(a), Florida $263,569,236 $261,624,931 $257,241,963 Constitution). $250,000,000 With the exception of the ad valorem tax and several constitutionally authorized State $200,000,000 shared revenue programs, local governments are dependent on the Legislature for the $50,672,326 $150,000,000 $54,574,058 $42,363,259 $45,386,520 $43,138,304 authority to levy any other forms of taxation, thereby increasing the relative importance of $100,000,000 the ad valorem tax. $50,000,000 To ensure tax equity, appropriate allocation of revenues and expenses between the $0 incorporated and unincorporated areas of 2009 2010 2011 2012 2013 Okaloosa County are evaluated annually. Taxes Total Budget Florida Statutes prescribes that appropriation of no less than 95.0% of all receipts reasonably anticipated being received from all sources, thereby establishing an almost 5.0% margin for error in revenue estimates, particularly in the area of ad valorem tax revenue. Ad Valorem Tax Okaloosa County’s property taxes comprised about 17.0% of total revenues in Fiscal Year 2013. Increasing property values is the largest potential source of revenue to support growth in service demands for most local governments. The State Legislature, along with the Tax Reform Commission, has and continues to study the Millage History Since Last Increase 6.0000 5.0000 4.0000 3.0000 2.0000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Page 4 Packet Pg. 11  1.b Ad Valorem Tax System imposed by the Florida Constitution. Some laws and Constitutional changes have already passed limiting this source of revenue. Staff continues to monitor ongoing legislative activity. Ad valorem taxes are currently used in the General Fund, County Health Department and Emergency Medical Services. Local governments may levy ad valorem taxes subject to ten mills for county purposes. Two targets attractive to County citizens, as well as the State Legislature, as they debate local government response to citizens’ desire to lower taxation, are the current millage rate and the rolled-back rate. Adoption of the rolled-back rate would generate the same amount of tax dollars as the prior year, plus the amount generated by new construction. For the most part, the new construction dollars generated are intended to fund existing services demanded by owners of the new property. Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) Based on Final 2013 Taxable Value of $13,565,838,217 Board of County Commissioners Taxes paid by Taxpayer* Millage Rate Increase County Taxes@95% Increase $100,000 Increase 3.2899 $42,398,739 $328.99 3.3500 0.0601 $43,173,280 $774,541 $335.00 $6.01 3.5000 0.2101 $45,106,412 $2,707,673 $350.00 $21.01 4.0000 0.7101 $51,550,185 $9,151,446 $400.00 $71.01 4.5000 1.2101 $57,993,958 $15,595,219 $450.00 $121.01 *Before exemptions & discounts. For sake of