Wakulla County 2 nd Budget Workshop for FY2009/2010

1. Wakulla County2nd Budget Workshop for FY2009/2010

2. How We Got Here On March 17, 2009, the Board ratified the following recommended actions presented at the 1st Budget workshop Roll-back rate and the maximum millage rate calculation for FY 2009/2010 millage. Components of the FY 2009/2010 Budget Plan • No new programs/maintain current funding levels (outstanding issue) • Zero position growth (implement). • Cost of Living Allocation (COLA) for Employees (not implemented) • Enhanced focus on new grant opportunities (implemented) • Enhanced Board focus on the Capital Improvement Plan. • Alternative funding options that were presented to the Board by Nabors, Giblin & Nickerson, PA.

3. TRIM formula and Rolled Back Rate Calculation Public Service Tax Option (PST). Legislative Update related to the Budget. Discussion of Program Funding based on revenues. Today’s Workshop Analysis

4. Maximum Millage Determination Maximum Millage Determination for (FY2009/2010) According to Florida Statute s. 200.065(5), beginning in the 2009-10 fiscal year, the maximum millage with a majority vote is “a rolled-back rate based on the amount of taxes which would have been levied in the prior year if the maximum millage rate had been applied, adjusted for the change in per capita Florida personal income, unless a higher rate is adopted, in which case the maximum is the higher rate.” The intent appears to be that if a rate higher than the maximum millage rate was adopted in the prior year, a rolled-back rate based on this higher millage should be calculated and further adjusted for the change in per capita Florida personal income.

5. TRIM Formula and Rolled Back Rate Calculation TRIM formula for FY2009/2010: • Statutorily Allowable Maximum Millage Rate Calculation By Simple Majority Vote: Net 2008-2009 Max. Millage Tax Revenue($11,914,323) Net 2009-2010 Est. Taxable Value ($1,318,890,768) = Roll-Back Rate (9.0336) • Statutorily Allowable Millage Rate Calculation Based on FY08/09 Adopted Millage: Net 2008-2009 Max. Millage Tax Revenue ($11,696,763) Net 2009-2010 Est. Taxable Value ($1,318,890,768) = Roll-Back Rate (8.8686)

6. TRIM Formula and Rolled Back Rate Calculation (Continued) • Personal Income Growth rate as calculated by Dept. of Revenue will be 1.0250% Statutorily Allowable Millage Rate Calculation Based on FY08/09 Adopted Millage Plus Personal Income Growth (RECOMMENDED) Net 2008-2009 FY08/09 Adopted Millage Tax Revenue (11,696,763) Net 2009-2010 Taxable Value (1,318,890,768 =Roll- Back Rate (8.8686) + % Personal Income Growth (1.0250%) = FY 2009/2010 Tentative Millage Rate for Wakulla County (9.0903)

7. Tentative Rolled Back Millage Rate Based On Estimated Taxable Value.

8. Alternative Revenue Options(Public Service Tax) • If the Board chooses to keep the millage rate of 8.0000, that will generate $10,551,126, which is a deficient in tax revenue from FY08/09 of ($1,145,637). • Equals a 9.79% revenue decrease over prior year. As a Charter County there are additional revenues. • Could be a mechanism to provide Property Tax Relief. • Budget Balancing tool if Board wants to keep millage rate at 8.0000 without cuts in service, personnel or expenditures. • Staff is not recommending at this time.

9. PUBLIC SERVICE TAX • The Public Service Tax (PST) is a tax authorized by Florida Statute 166.231-.236, to be levied by municipalities and charter counties by ordinance. It is a tax on the purchase of electricity, metered natural gas, liquefied petroleum either metered or bottled. The tax shall be levied only on purchases within the municipalities or the unincorporated areas of the charter county. • The tax cannot exceed 10% of the payments received by the seller. • Can be used for general revenue purposes. • 120 day timeframe to implement. • With approved ordinance, earliest implementation date is January 1, 2010. • Numerous Mandatory Exemptions

10. LEGISLATIVE UPDATE The $66.5 billion dollar State budget. Significant Budget Impacts. • Small County Solid Waste Grants (72% decrease). • State Aid to Libraries (20% decrease). • Fiscally Constrained Funding Offset (57% increase). • SCOP Program Expanded Use. • Other Revenues To Be Determined (Decreases)

11. Summary of Requests for Board Action • Direct staff to set the tentative millage rate based on the rolled back rate of the FY08/09 adopted millage rate plus the percentage growth in personal income. Allow this millage rate to be used in the development of the FY2009/2010 budget; OR • Direct staff to provide further property tax relief by way of adopting a budget plan LOWER than the rolled back rate. For example, 8.0000 mills would serve as a 9.79% reduction in property tax revenues and would create a $1,145,637 shortfall below existing budget. If the Board takes such action, staff seeks direction regarding how then to balance the tentative budget. This may include direction to a) cut spending across the Board or in targeted areas, or b) draft an ordinance to implement the Public Service Tax based upon a percentage approved by the Board to meet the 120 day notice required by the Department of Revenue. • Accept staff report on the legislative impacts on the FY09/10 budget and include such impacts in the Tentative FY2009/2010 budget.

12. Where Do We Go From Here? • Board Discussion and Direction