Local Funding of Indiana County Public Health Departments

1. Local Funding of Indiana County Public Health Departments ISDH Conference Call April 17th, 2009

2. Available Funding Sources Local State Federal Donor/Independent Funding

3. Local Funding Sources County Property Tax Revenues for Services Provided Donations

4. County government in Indiana is responsible for providing • law enforcement • (including sheriff services and jails), • recording deeds, • conducting elections, • Providing court services, • providing county health services and initiatives, • administering the county’s property tax system.

5. County Property Tax • Property taxes are the classic funding source for counties, municipalities, and local health departments • The establishment of a “Health Fund” (usually 801)allows for the money that is obtained to stay separate from the overall county general fund. • The Health Fund should be non-reverting to the General Fund

10. County Property Tax General Fund IC 6-1.1-17     Chapter 17. Procedures for Fixing and Reviewing Budgets, Tax Rates, and Tax Levies Separate Levies

11. Definitions Levy - The product of a specified tax rate and the assessed value. Levy terms include tuition support, maximum, and excessive.

12. Definitions (cont.) • Property Tax Rate - A percentage applied to each taxing body's assessed valuation which will produce the amount of that taxing body's levy, or, in other words, the levy divided by assessed value equals the tax rate. The tax rate is expressed in terms of "dollars per $100 of assessed value".

13. Definitions (cont.) Assessed Values (AV) - The total dollar value assigned to all real property and improvements plus personal property subject to taxation. Effective March 1, 2001 the assessed value will be true tax value. Locally elected assessors determine property values with appraisal guides prescribed by the Department of Local Government Finance. These values may be changed by the county board of review. The Department of Local Government Finance assesses all public utilities and may make adjustments to other assessments.

14. Assessed Values • Exemptions Deductions Report 2008 • Obtain Gross Assessed Values trending for your county • Look at Exemptions and Abatements for your county

15. An interesting definition… • Real Property - The interests, benefits and rights inherent in the ownership of physical real estate.

16. Budgeting The process of predicting operating expenditures over the course of the upcoming year and predicting income sources that are separate from property tax revenues. Warning! - Any incomes could go to off set the levy

17. Interested Parties in the Budgeting Process Local Depts. With Separate Levy Auditor Assessor Legislative Body (Council) Local tax review board Dept. of Local Government Finance

18. THE BUDGET PROCESS 5 step process

19. Step 1: Dept. Estimates Each department head prepares for his department an estimate of the amount of money required to operate his department in the ensuing budget year. Detailed line item estimates are presented to the County Auditor. “Budget Form 1”

20. Budget Form 1 • The Budget Form 1 should reflect those needs, which the County Auditor and other officials consider necessary to perform the county’s governmental function, without limiting the needs to comply with the maximum levy. • In order for the County Council to consider an excessive levy appeal, a need for the increase must be itemized. • It becomes the County Council’s responsibility to either make application for an excessive levy appeal or reduce appropriations to fall within the maximum levy guidelines.

21. Step 2: Revenue Projections The County Auditor prepares revenue estimates for the ensuing budget year, and prepares the itemized estimate of expenditures for all departments proposed for the ensuing budget year. Budget Form 2 and Budget Form 4-B

22. Revenue Projections =Risky Business • 18 month projection – July through December of current year and all of following year (this projection includes Excise tax also). • Better to be conservative and come in over projections, but try to be close • This is the time to consider the impacts of fee increases or change in services that are scheduled for ordinance change at the beginning of the year.

23. Projections (cont.) • If you increase your revenue, you then can look at how much came in under what service, then increase your line item to reflect the new revenue projection and the tax levy • It can be justified by planning out program expansion or need. • Preserve your previous levy!

24. Form 4B • Use this form to “save” unused money in the fund to carry over • Cars, equipment, buildings • Must move the money to the Operating Balance line item • If you do not it can and probably will be used against your levy

25. Form 4B (cont.) • Then you have to make sure to increase your Form 1 line item under which you would purchase the item or service • The DLGF would rather you do it this way than to borrow! • The plan has to be then submitted with the fund details in the Budget Order

26. Step 3: Budget Review Hearings The Commissioners and Council Members may meet with department heads and the County Auditor to review the various estimates. Budget Form 3

27. Budget Form 3 • Budget Form 3 is used to advertise to the taxpayers the budgets and levies which are to be raised in the ensuing year. • In addition, this form notifies the taxpayers of the dates of the public hearing and adoption of the budget. • No prior forms may be used for notification to taxpayers.

28. Step 4: After the executive reviews and revises the proposed estimates, the County Auditor prepares for the executive a list of estimated departmental budgets, miscellaneous expenses and revenues needed to support the estimates.

29. Step 5: Ordinances The County Auditor then presents the budget estimates to the County Council. The County Council prepares an ordinance fixing the rate of taxation for the ensuing year. The County Council may reduce any item it chooses.

30. Budget Order

31. Get a copy of This!! Budget Order - The budget order is a critical document in calculating tax bills. The order contains the state's certification of the approved budget, the estimated assessed value, the tax rate and the levy for each fund of each taxing unit in a county. The order also gives the total tax rate and property tax replacement credit (PTRC) rate, homestead credit rate and the local homestead credit rate for each taxing district.

32. County Studies by LSA • Legislative Services Agency Legislative Services Agency; a Non-partisan Agency created to support and assist the Legislature by providing data and other information relevant to proposed legislation

39. Overview of DLGF The Department of Local Government Finance is responsible for ensuring property tax assessment and local government budgeting are carried out in accordance with Indiana law. The Department is charged with publishing property tax assessment rules and annually reviewing and approving the tax rates and levies of every political subdivision in the state, including all counties, cities, towns, townships, school corporations, libraries, and other entities with tax levy authority.

40. Levy Excess Fund

41. Levy Excess Worksheet for Taxes Payable in 200?

43. Information http://www.in.gov/dlgf Thanks to the Local Health Department Infrastructure Committee of the Indiana Public Health Association Joshua S. Williams Chief Sanitarian Huntington County Dept. of Health 260-358-4831 joshua.williams@huntington.in.us