1 / 20

The 16-Line Statement Budget Form 4-b

The 16-Line Statement Budget Form 4-b. Dan Jones, Assistant Budget Division Director April 2009. Form 4-b Budget Estimate. Financial Estimate Commonly referred to as the “16-Line Statement” Covers the financial activity over 18 months Includes the estimated property tax rate and levy

ella
Download Presentation

The 16-Line Statement Budget Form 4-b

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The 16-Line StatementBudget Form 4-b Dan Jones, Assistant Budget Division Director April 2009

  2. Form 4-b Budget Estimate • Financial Estimate • Commonly referred to as the “16-Line Statement” • Covers the financial activity over 18 months • Includes the estimated property tax rate and levy • A separate Form 4-b must be completed for each fund “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  3. Form 4-b Budget Estimate “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  4. Form 4-b Budget Estimate • Column 1 is the budget as advertised by the unit • Column 2 is the budget as adopted by the fiscal body • Column 3 is the budget as revised by the tax adjustment board (can also be used for the non-binding recommendation) • Column 4 is the DLGF certified budget “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  5. Form 4-b Budget Estimate • Line 1 – Total budget for the fund for the ensuing year (total from Form 1 and Form 4 or 4A) • Line 2 – The balance of appropriations remaining to be spent from July 1st through December 31th of the current year • (Approved budget + additional appropriations –actual expense) “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  6. Form 4-b Budget Estimate • Line 3 – Additional appropriations anticipated in the second half of the current year • Line 4A – Temporary loans to be repaid by 12/31/09 • Line 4B – Temporary loans to be repaid by 6/30/2010 “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  7. Form 4-b Budget Estimate IMPORTANT: Temporary loans not repaid by the end of the current year require: 1. Emergency Declaration 2. Signed Resolution or Ordinance 3. Reported to DLGF and State Board of Accounts “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  8. Form 4-b Budget Estimate • Line 5 – Total of lines 1 through 4B. This gives the total estimated expense over the 18 month period. • Line 6 – Actual cash balances as of June 30. Includes cash and investments. • Line 7 – Property taxes estimated to be received in the second half of the current year. (Auditor’s Certificate) “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  9. Form 4-b Budget Estimate • Line 8A – Revenues to be collected July 1 through Dec. 31 of the current year. Information is from Form 2, Column A. • Line 8B – Revenues to be collected in ensuing year. (From Form 2 Column B.) • TIP– Be realistic but be conservative. “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  10. Form 4-b Budget Estimate • Line 9 – Total of Lines 6, 7, 8A and 8B • This is the total source of funding over the 18 month cycle, except for next years property taxes • Line 10 – Line 5 minus Line 9 • Total expense minus total revenues without property taxes – indicates the amount of property taxes needed “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  11. Form 4-b Budget Estimate • Line 11 – Operating Balance • Amount need to maintain sufficient cash flow. Ideally, this is 6 months operating expense minus miscellaneous revenues • Line 12 – Sum of Lines 10 and 11 “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  12. Form 4-b Budget Estimate • Line 13 – CAGIT Counties Only • This is the Replacement Credit required for property tax levy reduction in CAGIT adopting counties • Line 13B is to be used for counties that adopted LOIT’s for the property tax levy freeze “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  13. Form 4-b Budget Estimate • Line 14 – Line 12 minus Line 13 • (Property tax levy minus the levy replacement form CAGIT or LOIT) • This is not to exceed the maximum levy • In non-adopting counties line 14 will equal line 12 “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  14. Form 4-b Budget Estimate • Line 15 – Levy Excess • DO NOT USE!!! Always leave blank. Make the DLGF fill in this line. • Levy excess are property taxes collected in excess of 100% of certified levy • The “excess” will become credit to apply to next years levy. That is, it will be a temporary property tax reduction for next year. “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  15. Form 4-b Budget Estimate • Line 16 – Amount of property tax levy needed to fund next years budget. This amount is to be advertised on Form 3 • Line 17 – Tax Rate on each $100 of assessed value Levy = Tax Rate X ( AV/$100) “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  16. Form 4-b Budget Estimate • Tax Rate Calculation Example • Assume the assessed value is $123,456,789 and assume the required levy is $654,321 STEP 1: Divide AV by $100 = 123,456,789/100 = 1,234,567 STEP 2: Divide the required levy ($654,321) by Step 1 result: $654,321/$1,234.567 = 0.5300 Tax Rate needed is 0.5300 per $100 of assessed valuation “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  17. Form 4-b Budget Estimate TIP #1: Compare the completed Form 4-b with last years form. The numbers for the property tax levy and rate should be similar to last years. TIP #2: Watch that decimal point! A misplaced decimal point can be a disaster! “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  18. Form 4-b Budget Estimate TIP # 3: Remember to advertise a budget, rate and levy for any new debt that has been issued. TIP # 4. Remember to complete a separate form 4-b for each fund. The best way to get help with the Form 4-b is with your DLGF field representative at the budget workshops in July. “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  19. Library Budget Forms • Budget Form 5 • Budget submission Letter and Certificate • Certifies all funds and the approved property tax rates for each fund • Form is signed by the Board members and indicates how the voted on the budget “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

  20. Contact Us Dan Jones, Asst. Director 317-232-0651 djones@dlgf.in.go Tafrica Harewood, Additional 317-234-5592 tharewood@dlgf.in.gov Appropriations & CPF Mary Jane Michalak 317-232-3785 mmichalak@dlgf.in.gov Field Staff Locations 317-232-3773 Agency Phone: 317-232-3773 Fax: 317-232-8779 Web:www.in.gov/dlgf/ Email: PropertyTaxInfo@dlgf.in.gov “Committed to a fair and equitable property tax system for Hoosier taxpayers.”

More Related