Strategic Revenue Expenditure Discussion Matt Leavitt Summit County

Strategic Revenue & Expenditure Discussion Matt Leavitt, Summit County Finance Officer Michael Howard, Summit County Auditor Corrie Forsling, Summit County Treasurer

t rise Fund Municipal Fund General Fund Assess & Collect F Restaurant Ta Transient Roo x m Tax RAP Tax u Open Space Fnud nd Fleet Lease F Landfill Enterp Service Area #6 Transit Distric Service Area #8

t rise Fund Municipal Fund General Fund Assess & Collect F Restaurant Ta Transient Roo x m Tax RAP Tax u Open Space Fnud nd Fleet Lease F Landfill Enterp Service Area #6 Transit Distric Service Area #8

Residential Building Permit History Appearance that the County is growing

Residential Building Permit History 2006: 5 -year average = 695 permits / year 2011 = 414 permits / year 2016 = 221 permits / year

New Growth Revenues General Fund Avg $460 k per year Avg $511 k per year Avg $529 k per year Avg $175 k per year Avg $391 k per year Excluding the high and low

New Growth Revenues General Fund

New Growth Revenues Municipal Services Fund Avg $169 k per year Avg $91 k per year Avg $79 k per year Avg $117 k per year Excluding the high and low

New Growth Revenues Municipal Services Fund

Planning “Hot Sheet”

Estimating New Growth Revenues �IF… � ALL $1. 2 billion was completed in 2018, and � All of the developments were assessed at full market value, and � Rates continued to float downward as values increase: General Fund new growth revenues = $787, 750 � Municipal Services Fund new growth revenues = $577, 200 � �THEN… �One-year new growth revenues of $1. 3 million �Estimated annual property tax revenues would change from (about) $16. 2 million to $17. 5 million

Estimating New Growth Revenues �More likely scenario: �Development occurs over time, not at once. �About half of residential units will receive the primary residential exemption (taxed at 55% of market value). �Tax rates continue to float downwards as values increase.

t rise Fund Municipal Fund General Fund Assess & Collect F Restaurant Ta Transient Roo x m Tax RAP Tax u Open Space Fnud nd Fleet Lease F Landfill Enterp Service Area #6 Transit Distric Service Area #8

Where Do My Tax Dollars Go? General Government: many of the elected offices, sustainability, economic development. Public Safety: law enforcement, corrections, dispatch, animal control, ambulances, search & rescue. Public Works: county roads, waste collection, recycling. Government Services: support department such as facilities, IT, human resources. Public Health: general health, mental health.

Next Steps �Before June 22: the Auditor needs to present to the Council a proposed tax rate. �Before August 1: the County needs to advertise the tax increase, hold public hearings, and adopt the proposed rate. �Before August 17: if the resolution is not forwarded to the Auditor, then the certified rate will be the tax rate.

Tax Rate Options �Continue with the certified rate (the Null Option): �Adjust rate according to changes in values, budget for minor increase from new growth, reduce departmental budgets to reflect anticipated resources. �Freeze the tax rate: �Still requires the truth in taxation process, budget for minor increase from growth and rate adjustment, reduce departmental budgets to reflect anticipated resources. �Increase the tax rate (the Purchasing Power Option): �Increase the tax rate to address cost of inflation since 2004, budget according to recommended priorities, address departmental budgets according to priorities and Council’s Strategic Objectives.

Recommendations �Direct the Auditor to propose a tax rate different higher than the certified rate. �Utilize the increases in the following areas: �Restore fund balances �Retain and develop employees �Asset maintenance �Staffing requirements �Review potential tax rate adjustments every five years.

Impact of Purchasing Power Option

Questions? …and Direction for County Auditor