Florida Institute of Government at Florida State University

Florida Institute of Government at Florida State University FSASE Certification Project FCEP Level I – Budget Development for Elections Office 4 Hour Course Randy Singh Assistant County Administrator, Orange County Bill Cowles Supervisor of Elections, Orange County May 2017

Presentation Outline • County Facts • Budget Development Process • County Budget Overview • Financial Planning • TRIM Notice • Summary

Presentation Outline • County Facts • Budget Development Process • County Budget Overview • Summary

County Facts • 5 th Largest County in Florida • Population ~ 1. 3 Million – 89% Under 65 Years Old • 66 Million Visitors in 2015 • $109 Billion Taxable Value • Disney – Largest Taxpayer – Value of $8. 6 Billion – Employs 74, 000 Locally

County Facts How Large is the County’s Budget ?

County Facts Overall budget is $3. 7 billion - Greater than Bahamas, Bermuda, Greenland, Fiji, and many more.

County Facts What is the County’s largest revenue source? What is the State’s largest revenue source?

County Facts How much do you pay in gas tax per gallon of fuel?

County Facts How much do you pay in gas tax per gallon of fuel? Gas 49 cents Diesel 56 cents Federal 18. 4 24. 4 State 24. 9 Local 6 7

County Facts Population Unincorporated Orlando Others 813, 421 271, 752 195, 214 64% 21% 15%

County Facts 13 Cities in Orange County 13

Presentation Outline • County Facts • Budget Development Process • County Budget Overview • Summary

Budget Development Role of : Mayor Commissioners Staff Citizens

Budget Development Role of Mayor: Prepare and submit a balanced budget to the BCC

Budget Development Role of Commissioners: Discuss and approve the annual budget

Budget Development Role of Staff: Prepare a detailed budget based on the Mayor’s guidelines and priorities

Budget Development Role of Citizens: • Communicate with District Commissioners • Communicate with county staff • Participate on Advisory Boards

Office of Management & Budget OMB’s Principal Duties • • County Annual Budget Amendments Revenue Forecasting Long-term Financial Planning Operating Process CIP Process Grants Process

Office of Management & Budget OMB’s Principal Duties • • Budget Monitoring Financial Reports Fee Studies Audits

Presentation Outline • County Facts • Budget Development Process • County Budget Overview • Financial Planning • TRIM Notice • Summary

Class Exercise Simple Budget Exercise

Budget Overview • So what is a Budget?

Budget Overview • The Budget is a financial Plan • The budget serves as the primary tool for allocating financial resources to programs and services. – – Policy making tool, Management tool, Financial tool, Communication tool • Local and State Must be balanced – Federal is not

What is Financial Planning? A strategic approach to understand address your financial situation both short and long-term

What is Financial Planning? • Short-Term = 1 year - Annual Budget • Long-Term usually 5 years

Why Plan? • It’s your financial GPS • To know what you can afford now and later (financial sustainability) • To establish budget guidelines

What it is not It is not Accounting

Accounting vs. Financial Planning Accounting: • After the fact recording and reporting of financial events • Assets – Liabilities = Owners Equity • A strict science based on established guidelines and principles

Accounting vs. Financial Planning: • Forward looking – before the financial event • Part science and part Art (Art – based on prudent financial principles and judgment)

Accounting vs. Financial Planning: • Revenues – Expenditures = Surplus / Deficit • Revenues – Expenditures + - P = Trouble or Not Assets – Liabilities = Owners Equity

Accounting vs. Financial Planning: • Rev – Exp +- P = Trouble or Not Where P = Politics

Accounting vs. Financial Planning Politics: Increase Taxes Increase Fees Cut or Add Programs Public Safety Unions Term Limits Elections Legislators Lobbyists

What does it do? • Plan for stable service delivery during economic fluctuations • Examine long-term impact of current proposals • Identify and react to trends before it becomes a crisis • Calculate a measured response to economic and other changes

How to Plan? Understand your environment: • Social (education, crime rates, unemployment, etc. ) • Political/legislative (local, state & feds) • Geographical (location) • Seasonal (PST) • Infrastructure (condition) • Economic and Financial (global & local, CPI, etc. )

Forecasting Economic Indicators • • • Historical Trends Most Recent 3 Years Industry Patterns Legislation Global & Local Economy

Presentation Outline • County Facts • Budget Development Process • Budget Overview • Summary

Economic Environment • • • Uncertain times Slow economic growth Unemployment Legislative impacts Tax revenue erosion

Budget Process 11 Budget Amendment 1 Economic Indicators 2 Priorities/Guidelines 10 Budget Document 3 Department Requests 9 Adopted Budget 4 County Mayor, County Administrator & Staff Meetings 8 Public Hearings 7 BCC Changes & TRIM Notice 5 Proposed Budget Developed 6 BCC Worksessions

Budget Overview Where does our money comes from?

Orange County Revenues $3. 7 Billion

Budget Overview Where does our money go?

Adopted FY 2016 -17 Budget

Adopted FY 2016 -17 Budget Public Safety Sheriff Corrections Fire

Adopted FY 2016 -17 Budget Non-Public Safety BCC Departments Constitutional Officers Outside Agencies Other

County Staffing Levels 15% Population Growth

Presentation Outline • County Facts • Budget Development Process • County Budget Overview • TRIM Notice • Summary

Class Exercise Understanding Your Trim Notice

Property Tax Terms Market Value Just Value Assessed Value Save our Homes (JV –AV) Exemptions Taxable Value MSTU TRIM

Unincorporated TRIM Notice

Incorporated TRIM Notice

Property Tax Formula Assessed Value less Exemptions divided by 1000 then multiplied by the Millage Rate

Summary • • • Uncertain times Legislative impacts Slow economic growth issues Ongoing tax revenue monitoring Always know your financial situation

Florida Institute of Government at Florida State University FSASE Certification Project FCEP Level I – Budget Development for Elections Office 4 Hour Course Randy Singh Assistant County Administrator, Orange County Bill Cowles Supervisor of Elections, Orange County May 2017