ISAC New County Officers School

1. ISAC New County Officers School January 14, 2015 Dawn Jindrich, Linn County Budget Director David Farmer, Scott County Budget Manager

2. Agenda • Services Provided • Funding Sources • Budget Process • Questions

3. Budget Definition • Budget: A financial plan for a specified period of time (fiscal year) that matches all planned revenues and expenditures with various County services.

4. Expenditures Can be categorized in different ways: • Expenditure Category • Service Area • Fund • Department/Office

5. Classes of Expenditures • Personnel Services • Salaries • Benefits • Operations • Minor purchases • Services • Capital Outlay • Capital Asset Acquisitions

6. Service Areas • Public Safety & Legal Services • Physical Health & Social Services • Mental Health, Intellectual & Developmental Disabilities • County Environment and Education • Roads & Transportation • Government Services to Residents • Administration • Non-program Current • Debt Service • Capital Projects

7. Service Area Detail Public Safety & Legal • Law Enforcement • Legal Services and Courts • Emergency Services Physical Health & Social Services • Physical Health Services • Services to Poor Programs • Services to Military Veterans • Children’s & Family Services

8. Service Area Detail Mental Health, Intellectual & Developmental Disabilities • Mental Illness • Chronic Mental Illness • Intellectual Disabilities • Other Developmental Disabilities • County Provided Case Management • General Administration • County Provided Case Management • Brain Injury

9. Service Area Detail County Environment & Education • Conservation & Recreation Services • Animal Control • Planning & Development • Educational Services Administration • Policy & Administration • Central Services • Risk Management

10. Service Area Detail Roads & Transportation • Secondary Roads • Roadway Maintenance • Mass Transit Government Services to Residents • Elections • Motor Vehicles • Recording of Public Documents

11. Service Area Detail Long Term Debt • General Obligations Bonds • Revenue Bonds • Loans • Lease-Purchase Payments Capital Projects • Buildings or Improvements • Roads and Bridges • Equipment or Technology Acquisitions

12. Service Area Comparison Large County Small County

13. Elected Officials & Boards • Attorney §331.751 • Auditor §331.501 • Board of Supervisors §331.201 • Recorder §331.601 • Sheriff §331.651 • Treasurer §331.551 • Conservation Board §350 • Board of Health §137 • Veteran Affairs Commission §35(B)

14. County Departments • Civil Service • Community Services • Engineer • Human Resources • Information Technology • Facilities/Maintenance • Medical Examiner • Planning & Zoning/Code Enforcement • Other

15. Non-County Departments • Assessor • District Court Administration • Juvenile Court Services • E911 • Emergency Management • Human Services Administration • Solid Waste Management

16. Governmental Funds • General Fund • Special Revenue Funds • Debt Service • Capital Projects

17. General Funds §331.427 • General Basic §331.423 • Pays for general county services not paid from other levies • General Supplemental §331.424 • Elections and Voter Registration • Employee benefits (associated with general county services) • Property & liability insurance • Maintenance and operation of the courts

18. Special Revenue Funds • Rural Basic §331.423 • Rural Supplemental §331.424 • Secondary Roads §331.429 • Mental Health §331.424A • Debt Service §331.430

19. Rural Funds §331.428 • Rural Basic §331.423 • Pays for rural county services not paid from other levies • Rural Supplemental §331.424 • Employee benefits (associated with rural county services) • Aviation authorities

20. Debt Service Fund • General Obligation bond payments • Tax Increment Financing (TIF) districts included

21. Capital Projects Fund • Transfers from General Fund • Bond issue proceeds • Bonded projects paid from here

22. Other Funds • Recorder’s Records Management • Conservation Trust • Resource Enhancement And Protection (REAP) • Forfeited Property Funds • Jail Commissary • Enterprise Funds • Country View Care Facility • Washburn Water & Sewer

23. Revenues Can be categorized in different ways: • Revenue Source (Taxes, Fees) • Service Area (Roads and Transportation) • Fund (General Basic Fund) • Department/Office (Sheriff)

24. Sources of Revenue • Taxes • Property tax • Intergovernmental • State & federal pass-throughs/tax replacements (e.g., Commercial & Industrial Replacement) • Other governmental payment for services (e.g., contract law enforcement) • Licenses & Permits • E.g., building permits • Charges for Services • E.g., recording fees, motor vehicle licenses • Use of Money & Property • E.g., interest earnings, land rent • Miscellaneous • E.g., special assessments, contributions • Other • E.g., proceeds from debt issuance, sale of assets

25. County Revenue Sources

26. County Revenue Sources

27. A Closer Look At Property Taxes General Basic Levy • Levied against all property in the County, except TIF • Capped at $3.50/$1,000 of taxable valuation • Only three counties levy below maximum in FY 15 General Supplemental Levy • Levied against all property in the County, except TIF • Uncapped • But can only be used to the extent the General Basic levy is insufficient AND • Can only be used for specifically authorized functions • Rates range from $0 to $3.59, with average of $1.78

28. A Closer Look At Property Taxes Rural Basic Levy • Levied against rural property in the County, except TIF • Capped at $3.95/$1,000 of taxable valuation • Three-fourths of Counties levy below maximum Rural Supplemental Levy • Levied against rural property in the County, except TIF • Uncapped • But can only be used to the extent the Rural Basic levy is insufficient AND • Can only be used for specifically authorized functions • Rates range from $0 to $0.88, with average of $0.07

29. A Closer Look At Property Taxes Mental Health Levy • Levied against all property in the County, except TIF • Levied at comparison of old maximum of 1990’s cap vs 2013 estimated population 47.28 per capita less Medicaid Offset to create new maximum • Schedule provided in budget instructions. Debt Service Levy • Levied against all property in the County, including TIF • Uncapped • But outstanding debt cannot exceed legal debt limit defined as 5% of actual County valuation • Rates range from $0 to $3.02, with average of $0.54 • Pre-levy approval of debt required

30. A Closer Look At Property Taxes • Procedures do exist to exceed levy rate caps • Additions to levies via special levy election requiring majority approval • Certification of additional levy due to unusual circumstances (e.g., disaster, state mandated services, staffing problems, new program substantially benefitting residents, low tax base growth) requiring notice to public • 22% of counties exceed maximum General Basic levy • Tax levies and budget funds codified in Iowa Code Sections 331.421 through 331.428 • Correcting a common misconception re: Assessor and County Hospital • They are separate governmental entities with their own tax levies, distinct from County government

31. A Closer Look At Property Taxes • Property tax levy rates applied against “taxable” valuation • 5 of 6 classes of property receive a rollback which lowers taxable value

32. A Closer Look At Property Taxes • FY 2016 is the second year of the Commercial, Industrial, and Railroad property rollback of 90% of their 100% valuation. • State will make replacement claim payments to the County Treasurer for the Commercial and Industrial portion. • http://www.dom.state.ia.us/local/tax_history/index.html

33. A Closer Look At Property Taxes • http://www.dom.state.ia.us/local/tax_history/index.html

34. A Closer Look At Other Revenue Sources Secondary Roads • Funded through transfers from the General Basic and Rural Basic Fund • To qualify for Road Use Tax Fund, County must transfer at least 75% of a minimum amount of their general (16.9¢) and rural ($3.04) tax levies • Also receive federal and state funding such as Road Use Tax Funds, STP, Farm-to-Market, Federal Aid to Bridges, Traffic Safety

35. A Closer Look At Other Revenue Sources Bonds • Capital projects frequently financed through issuance of bonds • Bonds classified as General Obligation bonds (supported by tax levy) or Revenue bonds (supported by revenues of the project for which the bonds are issued) • Iowa Code sections 331.441 – 331.443 authorize bonds to be issued for “Essential” county purposes and “General” county purposes • With some exception, “essential” bonds may be issued after notice to public • “General” bonds requires 60% approval at special election • Repayment of bonds made through debt service levy, project revenues, or other revenues that may be available to abate the debt levy

36. How does this all come together?

37. Proposed Budget Summary • Published Summary of proposed budget • Major Expenditure classes • Proposed tax levies, estimated uncollected delinquent taxes, estimated credits to taxpayers, net current property taxes, and delinquent property taxes. • Other major sources of revenues • Other Financial Sources and Uses – Transfers, Proceeds from the issuance of General Long-Term Debt, Proceeds from sales of capital assets. • Comparison to two proceeding years. • Meeting date, time, location and telephone number.

38. Other Communications

39. Questions? • Contact Information: Dawn Jindrich, CPA Linn County Budget Director dawn.jindrich@linncounty.org David Farmer, CPA Scott County Budget Manager david.farmer@scottcountyiowa.com