udget For Local Property Tax Revenues

Transcription

1 REVENUES 37

2 Property Tax Revenue Trend 70,000,000 60,000,000 50,000,000 Dollars 40,000,000 30,000,000 20,000,000 10,000,000 - Note: Top part of Personal Property bar is State revenue received from Personal Property Tax Relief Act. FY 00 FY 01 FY 02 FY 03 FY 04 Approved Real Property Taxes Fiscal Year Personal Property Taxes 38

3 General Fund Revenues General Property Taxes FY 2004 Budget - $86,941,434 Real property taxes are assessed on all land and buildings located within Spotsylvania County. The FY 04 revenue projection, which includes a billing period in tax year 2003 and in tax year 2004, is based on a 2003 estimated assessed taxable value of $6,485,994,287 and a 2004 projected assessed taxable value of $6,794,409,406. The 2003 estimated values are based on preliminary land book values and are net of tax relief and deferred taxes of $244 million. The 2004 taxable value reflects a 4.76 percent increase over the previous year s assessed value due to growth. Although a general property reassessment is planned for January 1, 2004, no growth due to this reassessment is included in this approved budget. Holdings of Public Service Corporations are assessed by the State; all other properties are assessed locally. For calendar year 2003 the real property tax rate will remain at $1.01. Using this rate, real property taxes are budgeted at $69,728,100 including public service corporation payments, comprising 45.9 percent of the General Fund operating revenue stream. Personal property tax encompasses all tangible property owned in the County, including automobiles, trucks, recreational vehicles and boats, business office furniture and equipment, and mobile homes. (While mobile homes are valued as personal property, state law requires that the rate for taxation not exceed that for real property, which is $1.01 per $100.) In FY 04, at the current tax rate of $5.00 per $100 at fifty percent of assessed value, personal property taxes are budgeted at $14,348,834, including public service corporation payments and mobile home taxes, and comprise about 9 percent of the County s operating revenue stream. The budget reflects a $5.3 million, or 59.3 percent, increase from the FY 03 budget. The increase is largely attributable to the Personal Property Tax Relief Act of 1998 (PPTRA), which legislated the elimination of certain portions of the local personal property tax on vehicles. Offsetting revenue is provided by the Commonwealth of Virginia and is shown in the State Revenue section of the budget. During the 2001 General Assembly, the State percentage was frozen at 70% and remains so for FY 04. The FY04 approved budget is based on the historical breakdown of Personal Property and PPTRA collections. A percent growth rate in personal property assessments is assumed for FY 04 based on a 3-year historical average. Heavy equipment and machinery and tools are taxed at the rates of $2.00 per $100 at fifty percent of assessed value and $2.50 per $100 at fifty percent of assessed value, respectively. These categories are budgeted at $1,164,500 in FY 04 and reflect historical assessed value trends. 39

4 Other Local Taxes FY 2004 Budget - $29,607,165 Categories within Other Local Taxes include locally based tax revenues such as local sales tax ($10,600,000), meals taxes ($4,100,000), utility taxes ($4,660,000), business license taxes ($2,800,000), and motor vehicle decals ($2,500,000). During the FY04 budget process the Board of Supervisors agreed to hold public hearings to consider increasing rates for both motor vehicle decals and E911 Tax. It is proposed that motor vehicle decals increase from $20 to $25 each and that the E911 Tax increase from $1.50 per month to $2.25 per month. The FY04 approved budget includes the estimated revenue from these increases. Local Sales tax of $10.6 million reflects a 7.5 percent increase over the FY 03 budget and a 7.2 percent increase over FY 02 collections. These growth rates reflect slight decreases as compared to the growth in sales tax in recent years due to the loss of several large retail businesses in the County (Wal*Mart, Montgomery Ward and Service Merchandise). This decrease is partially offset by the addition of Costco during FY 02. A complete listing of all local taxes, and their budgeted amounts, can be found in the General Revenue Detail section of the budget document. Other Local Revenue FY 2004 Budget - $9,567,105 Categories within Other Local Revenue include permits and fees, regulatory licenses and charges for government services as appropriate, and miscellaneous revenues. Almost sixty percent of the revenue within Other Local Revenue is generated by Development Review Fees ($2,759,129), interest earned on County funds ($950,000), Planning review fees ($893,191) and W/S administrative fees ($1,028,184). User fees are periodically reviewed to analyze the relationship of the cost of providing the service to the revenues generated by the service, the goal being that fees cover 100 percent of the cost. The investment activities include a daily analysis of current and up-coming cash flow requirements with any available funds being placed in an interest bearing account. The FY 04 projected earnings are based on FY 02 and FY 03 levels of activity, the reduction in interest rates nationwide, and the County s commitment to maintaining an adequate fund balance. A complete listing of local revenues, and their budgeted amounts, can be found in the General Revenue Detail section of the budget document. 40

5 Revenue Trend 14,000,000 12,000,000 10,000,000 Dollars 8,000,000 6,000,000 4,000,000 2,000,000 0 FY 01 FY 02 FY 03 FY 04 Approved Note: State revenue does not include Personal Property Tax Relief. Fiscal Year Motor Vehicle Licenses Business License Taxes Meals Taxes Utility Taxes Sales Tax State Revenue 41

6 State Revenues FY 2004 Budget - $25,930,310 State revenues fall within four main categories: Non-Categorical, Shared Expenses, Social Services and Other Categorical Reimbursements. Non-Categorical revenues include state revenues that are generated within the boundaries of the locality and are not associated with a specific program or service, such as ABC Profits. Budget estimates for these revenues are primarily based on historical and year-to-date receipts. Personal Property Tax Relief Act revenues are budgeted under this category and constitute the major reason for the decrease in State revenues. These revenues are projected at $13.1 million. Shared Expenses are for programs that are jointly funded by the State and the locality, such as constitutional offices. Budget estimates for these revenues are based on State projections and include reductions approved by the General Assembly in FY04. Social Services revenues are state monies and federal monies that pass through the state to the locality for social services programs, such as Public Assistance programs, Adoption Subsidies, Foster Care Services and Comprehensive Services Act. The different programs administered by the Social Services Department have different levels of funding or local match requirements. A local match is the locality's required share of funding for a program. For example, a program may have an approved state budget of $100,000 with an 80/20 match. This means the state would fund 80 percent, or $80,000, of the program and the locality would be required to fund 20 percent, or $20,000, of the program. Local match requirements for the different social service programs range from zero percent to 50 percent of program costs. FY 04 budgeted estimates are based on expenditure trends for the programs and the application of the appropriate allocation formulas, and anticipated case loads in mandated sum sufficient programs. A sum sufficient program is one in which the state is required to fund 100 percent of its share of eligible cases regardless of the original funding allocation. A non-sum sufficient program can be suspended once the state allocation and any required local match have been fully expended. Other Categorical revenues are state revenues that are for a specific activity, such as the Victim Witness grant in the Commonwealth Attorney s Office. Budget estimates for these revenues reflect anticipated and actual grant awards, historical receipts or population estimates, depending upon the source of the grant. A complete listing of state revenues, and their budgeted amounts, can be found in the General Revenue Detail section of the budget document. 42

7 FY 2004 General Fund Revenue Sources Intergovernmental 17% Other Local Revenue 6% Total Gen Prop Taxes 59% Real Property Taxes 47% Other Local Taxes 19% Personal Property Taxes 9% Other Property Taxes 1% Penalties/Interest 1% Intergovernmental Revenues by Category 28% 3% 15% 54% Other Categorical Reimbursements Comp Board Funding Non-Categorical Reimbursements Social Services Revenue Note: Federal Revenues account for less than one percent of Intergovernmental Revenues. 43

8 Use of (Addition to) Fund Balance FY 2004 Budget $964,363 The County's General Fund Balance is an accumulation over time of excess revenues over expenditures. The fund balance is made up of designated and undesignated monies. Designated monies are for anticipated funding requirements, such as construction. Undesignated monies are available to be expended as directed by the Board of Supervisors. The fiscal policies adopted by the Board stipulate that the undesignated fund balance, at the close of the fiscal year, be equivalent to eight to ten percent of operating revenues for that year. For FY 04, approved expenditures exceed budgeted revenues by approximately $964,363. At June 30, 2003, the undesignated fund balance is projected to be $26,102,931. At the end of FY 04, the undesignated fund balance is projected to be $25,138,568 or 10.1 percent of operating revenues. Undesignated Fund Balance 30,000,000 14% 25,000,000 12% Dollars 20,000,000 15,000,000 10,000,000 10% 8% 6% 4% As % of Oper. Revenues 5,000,000 2% 0 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 est. FY 2004 est. 0% Dollar Value Percentage Value 44

9 General Fund Revenues Capital Projects Fund Revenues Local Revenues FY 2004 Budget - $168,100 Local Revenues include funding from Interest Earnings ($150,000), defaulted street bonds ($13,600) and Special Assessments for Hunters Lodge ($4,500). Debt Proceeds FY 2004 Budget - $4,041,276 Included are a combination of bond and lease proceeds to fund fire and rescue, public safety and general capital needs. Use of (Addition to) Fund Balance FY 2004 Budget $1,330,443 The Capital Projects Fund Balance is an accumulation over time of excess revenues over expenditures. The fund balance is made up of designated and undesignated monies. Designated monies are for anticipated funding requirements. Undesignated monies are available to be expended as directed by the Board of Supervisors for capital projects. For FY 04, approved expenditures exceed budgeted revenues by approximately $1,330,443. At June 30, 2003, the undesignated fund balance is projected to be $1,452,456. At the end of FY 04, the undesignated fund balance is projected to be $122,

10 General Fund Revenues School Operating Fund Revenues All School revenue estimates are per the School Board s Approved FY 04 budget. Local Revenues Generated by School Board FY 2004 Budget - $1,702,928 The bulk of these monies are generated charges for tuition for adult education and from other localities, rental fees, insurance adjustments, and payments from other agencies. State Revenues FY 2004 Budget - $84,018,729 State Revenues include 13 different categories of state funding for the Schools, the primary one being Basic School Aid. Basic School Aid is based on student enrollment and is subject to adjustment once actual enrollment figures are available at the beginning of the school year. Other significant categories are State Sales Tax, State Share of Payroll and Special Education. Federal Revenues FY 2004 Budget - $5,657,363 Federal Revenues include federal monies for special education programs serving specific populations (such as those children with emotional, behavioral or physical disabilities) within the school age population residing in Spotsylvania and Adult Education. School Food Service Fund Revenues Locally Generated Revenues FY 2004 Budget - $4,460,643 The bulk of these monies are generated from the sale of student lunches. State Revenues FY 2004 Budget - $117,013 Federal Revenues FY 2004 Budget - $1,538,374 The State and Federal governments provide some financial assistance to meet State and Federal requirements for providing nutritionally sound student lunches. Transfer From School Operating Fund FY 2004 Budget - $299,268 Anticipated revenues for the School Food Service Fund are not projected to cover the costs of operating the program. The School Board s approved budget includes a transfer of $299,268 from the School Operating Fund to cover the overage. These funds ultimately come from the General Fund transfer for school operations. 46

11 General Fund Revenues School Capital Projects Fund Revenues Debt Proceeds FY 2004 Budget - $36,810,016 Debt proceeds fund the capital improvement activities of the School system. Included are bond proceeds from both Virginia Public School Authority (VPSA) and general obligation bonds, lease revenue bonds issued through the County s IDA and literary loan money from the state. SCHOOL FUNDS MAJOR REVENUE SOURCE HISTORY State & Federal Local Revenues Transfer FY 92 29,583,166 31,129,951 FY 93 33,305,204 34,720,328 FY 94 35,011,321 35,130,592 FY 95 39,531,464 35,099,177 FY 96 41,811,263 43,611,555 FY 97 46,467,961 46,898,126 FY 98 50,486,218 53,776,990 FY 99 57,272,444 58,312,672 FY 00 63,403,869 64,606,032 FY 01 71,074,510 71,158,036 FY 02 75,617,167 73,138,558 FY 03 84,998,396 82,346,054 FY 04 Approved 91,331,479 88,198,270 47

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