General Government Budget Overview Budget Process Year 1

General Government Budget Overview

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

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

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

General Fund Revenue • FY 16 Budget $108. 6 million • Other Taxes • 6% • Othe r • 4% • Utility Transfer • 32% • Charges for Services • 9% • Fire Assessment • 5% • Intergovernment al • 12% • Property Taxes • 23% • Utility Taxes • 9%

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 § FY 15 New Transfer Formula Base equals FY 14 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

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

Property Taxes § Millage Rate Tax rate set by the taxing authority each year Rate per $1, 000 value FY 16 rate is 4. 5079

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

Taxable Property Value • Trend in Taxable Property Value (in • 5, 8 billions) 9 • 6, 00 • 5, 80 • 5, 6 3 • 5, 60 • 5, 40 • 5, 20 • 5, 6 7 • 5, 6 1 • 5, 4 1 • 4, 9 7 • 5, 00 • 5, 1 7 • 5, 6 5 • 5, 7 9 • 5, 1 8 • 4, 80 • 4, 60 • 4, 40 • 4, 3 4 • 4, 20 • 4, 00 • 3, 80 • 3, 5 • 3, 8 1 • 3, 60 6 • 3, 40 • 3, 20 • 3, 00 • FY 04 • FY 05 • FY 06 • FY 07 • FY 08 • FY 09 • FY 10 • FY 11 • FY 12 • FY 13 • FY 14 • FY 15 • FY 16

Millage Rates • Trend in Millage Rates • 5, 10 • 4, 9416 • 4, 90 • 4, 8509 • 4, 70 • 4, 578 • 4, 4946 • 4, 50 • 4, 30 • 4, 5079 • 4, 3963 • 4, 2544 • 4, 10 • 3, 90 • 2004 • 2005 • 2006 • 2007 • 2008 • 2009 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 • 2016

Taxable Property • Peer City % of Taxable Property • Gainesville • Tallahassee • Pembroke Pines • Lakeland • Hollywood • Port St lucie • Cape Coral • Coral Springs • West Palm Beach • Ft Lauderdale • Miramar • Clearwater • Miami Beach • 40, 27 • 54, 45 • 66, 39 • 68, 50 • 69, 83 • 70, 29 • 71, 50 • 72, 63 • 74, 35 • 74, 68 • 76, 86 • 78, 12 • 78, 66 • 0, 00 • 10, 00 • 20, 00 • 30, 00 • 40, 00 • 50, 00 • 60, 00 • 70, 00 • 80, 00 • 90, 00

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

Utility Tax • Utility Tax Revenue Budget (millions) • 12 • 10, 74 • 10 • 8 • 9, 24 • 9, 42 • FY 08 • FY 09 • 11, 16 • 10, 77 • 10, 78 • 10, 41 • 10, 02 • 10, 26 • FY 15 • FY 16 Budget • 7, 83 • 6 • 4 • 2 • 0 • FY 07 • FY 10 • FY 11 • FY 12 • FY 13 • FY 14

Intergovernmental Revenues § Account for 12% or $12. 6 M of revenue budget Half Cent Sales Tax and State Revenue Sharing is $10. 2 M § Dramatically effected by recession FY 09 -FY 13 are approximately $6. 10 M or 12. 4% less than FY 04 -FY 08 FY 18 is when we return to same level as our peak in FY 06 § Recovery is beginning and projections include about 3% growth each year based on a combination of population growth and CPI growth

Fire Assessment § Implemented in FY 11 and must be approved every year through separate resolution § $78 per factored fire protection unit § $5. 4 million in revenue each year § Starting in FY 16, the City will pay the fire assessment on behalf of religious and charitable organizations ~ $120, 000

General Fund Expenditures

General Fund Expenditures § General Government service delivery intensive organization § Almost 60% of expenditures are personal services § More than 50% of expenditure budget goes to Public Safety

General Fund Expenditure Budget • FY 2016 General Fund • Uses by Function • 0, 17 % • 11, 00 % • 51, 44 % • 0, 43 % • 0, 13 % • 6, 79 % • General Government • Public Safety • Physical Environment • Transportation • 15, 15 % • 14, 88 % • Economic Environment • Human Services • Cultural & Recreation • Transfers/Cont.

General Fund Expenditures § From FY 08 -FY 12, cuts to General Fund budget totaled $15 M $9. 5 M in departmental cuts $5. 6 M in city-wide cuts and organizational efficiencies 81 Full Time Equivalent position reductions § FY 13 -14 Relatively stable Implemented Pension reform § FY 15 - another $2. 2 M in expenditure reductions 13 Full Time equivalent position reductions No raises budgeted for employees

General Fund Expenditures § FY 16 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

Questions