county administrator's recommended budget …...refresher training for departments in using the...

COUNTY ADMINISTRATOR'S RECOMMENDED BUDGET

FORFY95 EXECUTIVE SUMMARY

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GOVERNMENT FINANCE OFFICERS ASSOCIATION

Distinguished Budget Presentation

Award PRESENTED TO

Hillsborough County,

Florida

For the Fiscal Year Beginning

October 1 , 1993

President Executive Director

The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for Distinguished Budget Presentation to Hillsborough County for its annual budget for the fiscal year beginning October 1, 1993. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

HILLSBOROUGH COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS

ED TURANCHIK DISTRICT!

JAN PLATT COUNTYWIDE

JIM NORMAN DISTRICT2

VICE CHAIRMAN

SANDRA HELEN WILSON

DISTRICT3

PHYLLIS BUSANSKY COUNTYWIDE

FREDERICK B. KARL COUNTY ADMINISTRATOR

CONSTITUTIONALLY ELECTED COUNTY OFFICIALS

Richard Ake, Clerk of the Circuit Court Ron Alderman, Property Appraiser

Cal Henderson, Sheriff Pam Iorio, Supervisor of Elections

Melvin B. Smith, Tax Collector

LYDIA MILLER DISTRICT4

JOE CHILLURA COUNTYWIDE

CHAIRMAN

A DESCRIPTION OF IDLLSBOROUGH COUNTY GOVERNMENT

Hillsborough CoWJty is geographically located midway along the west coast of Florida. The CoWJty's boWJdaries embrace 1,048 square miles of land and 24 miles of inland water for a total of 1,072 square miles. The unincorporated area encompasses 931 square miles or 87 percent of the total area. The municipalities of Tampa (the county seat), Temple Terrace and Plant City account for the remaining 141 square miles. According to the Hillsborough County City-CoWJty Planning Commission's 1993 estimates, the county's total population was 855,100 of which 533,400 live in the unincorporated areas.

Seven-Member Commission Elected to Govern County

Hillsborough County, a political subdivision of the State of Florida, is guided by an elected sevenmember Board of County Commissioners. Through partisan elections, three are elected to represent the entire county as a district and four are elected to represent single-member districts. Under a Charter Ordinance effective May 1985, the Board is restricted to performing the legislative fWlctions of government by developing policy for the management of Hillsborough County. The County Administrator, a professional appointed by the Board, and his staff are responsible for the implementation of those policies.

Commissioners Serve on Other Boards

The Board of County Commissioners also serve as the Environmental Protection Commission. Individual Board members serve on various other boards, authorities, and commissions, such as the Hillsborough Area Rapid Transit Authority, Tampa Bay Regional Planning Council, West Coast Regional Water Supply Authority, Aviation Authority, Expressway Authority, Sports Authority, Board of Criminal Justice, Arts Council, Drug Abuse Coordinating Council, Metropolitan Plamting Organization, Council of Governments and the Committee of 100 of the Greater Tampa Chamber of Commerce.

Constitutional Officers

In addition to the members of the Board, citizens also elect five Constitutional Officers: Tax Collector, Property Appraiser, Clerk of the Circuit Court, Sheriff, and Supervisor of Elections. The Board fWlds all or, in some cases, a portion of the operating budgets of these Constitutional Officers. The Constitutional Officers, with the exception of the Supervisor of Elections, maintain separate accounting systems and budgets.

Other Government Agencies

Based on the degree of budgetary authority, taxing authority, the ability to obligate fWlds to f"mance any deficits and the ability to fWld any significant operational subsidies, several other governmental entities also have their budgets reviewed and approved by the Board of County Commissioners: the Environmental Protection Commission, the Civil Service Board, the Planning Commission, the Legislative Delegation, and Law Library Board. The budgets of these offices and the Constitutional Officers are included in this document.

Role of the County Administrator

The County Administrator is an appointed official who is responsible for carrying out all decisions, policies, ordinances and motions of the Board.

The departments under the County Administrator are responsible for providing road construction and maintenance, solid waste disposal, parks and recreation, emergency services and water and wastewater treatment for residents of unincorporated Hillsborough County. The departments also are responsible for providing social services and public assistance to residents countywide.

These departments are grouped into four offices: Support Services, Community Services, Financial Services, and Municipal Services.

BOARD OF COUNTY COMMISSIONERS I County County ---Attorney Administrator

Data Management Legislative liaison Community Affairs

Management Services

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Community Financial Municipal Support Services Services Services Services

· Aging Services · Budget Department · Animal Services · Administrative Support

· Children's Services · Commerce Department · Building Department · Cable Communications

· Community Action · Debt Management · Emergency Medical · Citizens Assistance & & Planning Agency

- Insurance & Claims Services Information

· Community Health Management · Fire Department · Engineenng & & Human SeiVices Construction SefVices

· Purchasing & Contracts · Housing & Community · Cooperative Extension

· Real Estate Development · Facilities Management

· Employment & Training · Medical Examiner - Fleet Management

·Head Start · Parks & Recreation · Human Resources &

· Library Services - Permit SeiVices Center Equal Opportunity

· Museum of Science - Planning & Development & Industry Management

· SOCial SeiVices · Public Sefety

· Public Utilities

· Road & Street

·Solid Waste

Table of Contents

The Process of Adopting the FY 95 Budget ................................................................................... 1 FY 95 Budget Summary ................................................................................................................ 3

Sources and Uses Chart ............................................................................................................. 4 Sources and Uses Table ............................................................................................................. 5

Department Budget Summary Comparison .................................................................................... 6 Capital Projects Budget: Sources and Uses ofFunds ...................................................................... 8 Debt Service Budget.. .................................................................................................................... 9 Summary Infonnation on the Recommended FY 95 Budget .......................................................... 10 Economic Indicators ...................................................................................................................... 13 Graphs of Selected Economic 1ndicators ........................................................................................ 14 Basic Information on Property Taxes ............................................................................................. 16

Chart: Total Property Valuation ................................................................................................. 19 Chart: New Construction Valuation ........................................................................................... 19

Millage Comparison ...................................................................................................................... 20 Chart: Use of the Countywide 10-mill Cap ................................................................................. 22 Chart: Use of the MSTU 10-mill Cap ......................................................................................... 22

Impact of Local Taxes .................................................................................................................. 23 Major County Revenues ................................................................................................................ 24

Chart: Changes in Hillsborough County Property Values .......................................................... 27 Chart: Current Ad Valorem Taxes ............................................................................................ 27 Chart: Indigent Care Sales Surtax ............................................................................................. 28 Chart: Voted Gasoline Tax ........................................................................................................ 28 Chart: Local Option Gasoline Tax ............................................................................................. 29 Chart: Local Option Tourist Development Tax .......................................................................... 29 Chart: EMS Ambulance Service Fees ........................................................................................ 30 Chart: Local Government 1/2-Cent Sales Tax ........................................................................... 30 Chart: State Revenue Sharing .................................................................................................... 31 Chart: County Gasoline Tax ...................................................................................................... 31 Chart: Federal Revenue Sharing ................................................................................................ 32 Chart: Building Department Fees .............................................................................................. 32

Glossary ........................................................................................................................................ 33

This document, including its cover, is printed on recycled paper in order to aid in preserving our natural resources.

We ask that you "recycle" this document by sharing it with others.

Special thanks to Gerri Freeman, Printing Services Manager of the Hillsborough County Print Shop ,for production advice and assistance, and to Alan Bruiser, Graphics Supervisor for the City of Tampa Publications Department ,for cover and title page design. Printed July, 1995.

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The Process of Adopting the FY 95 Budget

The process for adopting Hillsborough County's FY 94 budget consists of four distinct stuges or phases: 1. Planning, 2. Preparation, 3. Review, aad 4. Public Adoption.

The Planning Phase began October l, 1993 with the development of a fmancial planning tool -- a "Pro Forma" budget extending the FY 94 budget for two major operating funds five years into the future. The planning phase continued with the preparing of budget instructions and examples, and preparing training materials.

The Preparation Phase began with a budget kickoff meeting on March 23, 1994, by the County Administrator where directions for the budget process were provided and written budget instructions were distributed. The process included refresher training for departments in using the County's new automated budget preparation system. This system is linked to departments' microcomputers through connection of the mainframe computer to the County wide area network and to local area networks. Budget staff assisted departments in preparing two line item budgets: a continuation budget that re-priced the FY 94 budget into FY. 95 dollars, and a "target" budget that showed what FY 95 costs could fit, on a priority basis using zero base budget techniques, into the same dollars budgeted for FY 94. Finally, departments were provided assistance in preparing documentation for the prioritization of programs from the bottom up using "decision units" to describe each component. Those decision units with the lowest priority were those that could not fit within the target budget, but which would be funded within the continuation budget.

Departments also prepared documentation on mandates that must be addressed in FY 95. Mandates include new federal or state requirements that must be met. Mandates also reflect the cost of new County facilities coming on line that must be operated and maintained.

Some organizations also submitted what are known as "desired service level" decision units. These items have been discouraged in previous years because

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shortfalls made it difficult to fund existing programs at a continuation level. Another reason they have been discouraged is that in past years, many departments spent more effort justifying their new requests than they did justifying their existing level of resources. In the FY 95 process, however, new requests have been documented for consideration even though they generally could not be funded, given available resources.

The Review Phase began with scheduled work sessions to review the budgets of selected departments with the County Administrator. Departments reviewed were: Solid Waste, Public Utilities, Road and Street Maintenance, Parks and Recreation, Aging Services, Children's Services, Fire, Engineering and Construction Services, Library Services, and the Museum of Science and Industry.

These work sessions, which began in late April and ran through early June, were videotaped and open to the public. They consisted of a presentation of departmental programs followed by a review of the department's budget submission as detailed through decision unit sununaries. Tapes of the reviews, along with all documents presented during the reviews, are available to the public for review.

Upon completion of the selected departmental reviews, other departments under the County Administrator were examined in June in less detail during reviews with assistant county administrators.

A Taxpayer's Guide to the HiUsborough County Budget was updated in July for use as an educational tool for those interested in County budgets. This document was first produced in 1992 and received the Govenunent Finance Officers Association Award for Excellence in Financial Management.

The review phase ended with a series of fmal reviews of departmental submissions by the County Administrator, and receipt of official information on the County's ad valorem tax base for the FY 95 budget from the Property Appraiser.

At this point, the County Administrator's Recommended Budget for FY 95 was produced for

presentation to the BOCC on July 14, in accordance with Florida Statutes.

The Public Adoption Phase begins with the formal receipt of the County Administrator's Recommended Budget on July 14, 1994. At this point the BOCC begins its review of the budget and the public process of review, change and formal adoption.

A second milestone in the phase is the setting on August 4 of proposed millage rates, which are used to prepare Truth in Millage or "TRIM" notices for distribution in August.

TRIM notices advise County taxpayers how tax rates proposed by all local taxing authorities, combined with current information on assessed value of real property, will affect the taxes on each taxed parcel of land. The TRIM notice also serves as the official notification of the time and place of the first Public Hearing for adoption of tentative millage rates and a tentative budget by each taxing authority.

The third milestone in this phase of the budget process is the first public hearing, which will be held September 7. At this meeting the BOCC, after hearing public testimony, adopts tentative millage rates and a tentative budget.

The fourth and final milestone in the budget process for adoption of the FY 95 budget is the second public hearing on September 22. The second public hearing is advertised by a published notice and a published breakdown of the tentative millage rates and the tentative budget. As with the first public hearing, the BOCC hears public testimony prior to adopting fmal millage rates and a fmal budget for FY 95.

1n accordance with Florida statutes, the adopted budget is subsequently filed with the Florida Department of Revenue, effective October l, 1994.

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FY 95 Budget Process Milestones:

Preparation

• March 23 - Budget "Kickoff'' Meeting

• April15- Revenue Worksheets Due

• April 29 - Budget Submissions Due Including Data Entry to Budget System by On-Line Departments

• June 1 - Budget Submissions Due From Sheriff, Clerk, Property Appraiser, and Supervisor of Elections

Review

• April 28-June 16 Departmental Worksessions With County Administrator

• June 13 - July 13 - County Administrator Review by Team and Finalization of the Administrator's Recommended Budget

Public Adoption

• July 14 - County Administrator's Presentation of the FY 95 Recommended Budget to theBOCC

• August 4- BOCC Workshop to Set Proposed Millage Rates

• September 7 - 1st Public Hearing to Adopt Tentative Millage Rates and a Tentative Budget

• September 22 - 2nd Public Hearing to Adopt Final Millage Rates and the FY 95 Budget

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FY 95 BUDGET SUMMARY

FY92 FY93 FY94 FY95

Fiscal Year ACTUAL ACTUAL ADOPTED RECOMMENDED

PROPERTY TAX RATES (In Mills)

Countywide (A) 8.2166 8.2166 8.2143 8.2094 Library District (B) 0.4481 0.4481 0.5662 0.5662 General Purpose MSTU (C) 5.0621 5.0621 5.1147 5.1131

VALUE OF 1 MILL (In Millions of$)*

Countywide $24.4 $24.1 $25.2 $26.0 Library District 23.2 22.8 23.9 24.5 Unincorporated 13.6 13.6 14.2 14.7

BUDGET SUMMARY (In Millions of$)

Operating $537.3 $567.7 $629.3 $702.6 Capital (Net of Reserves) 121.9 60.6 217.5 251.6 Debt Service 100.3 414.5 86.0 80.6 Reserves &Refimds (D) 0.8 1.6 365.3 375.6 MAJOR ORGANIZATION OPERATING BUDGET (In Millions of$)

Board of County Commissioners $1.0 $1.1 $1.2 $1.2 County Administrator 307.4 328.7 366.3 417.6 County Attorney 3.5 3.4 3.7 3.9 Elected Officials 169.8 173.1 181.9 193.8 Judicial 8.2 9.8 10.5 10.9 Boards, Commissions & Agencies 14.3 15.4 16.4 16.7 Non-Departmental (E) 33.0 36.2 49.3 58.3

$537.3 $567.7 $629.3 $702.6

CAPITAL BUDGET (In Millions of$)

Transportation $23.2 $25.0 $72.1 $85.7 Parks 2.2 1.2 7.7 13.9 Water/Wastewater 24.2 11.7 69.0 63.3 Storm water 1.5 1.9 3.0 4.1 Solid Waste 1.3 1.8 4.2 4.1 Fire 0.5 0.5 1.6 2.0 Court/Government Buildings 35.3 8.8 35.7 33.6 Correctional Facilities 0.2 3.8 1.3 0.3 Library Facilities 0.0 0.3 12 2.4 Environmental Lands Acq. Program 20.8 4.1 18.5 39.2 Housing and Urban Development 0.3 0.4 2.0 1.8 Other 0.0 0.0 0.6 0.5 Other Non-CIP 12.2 .u 0.6 0.4

$121.9 $60.6 $217.5 $251.6 *Based on the certified tax roll, June 30, 1994.

(A) See the pages entitled Millage Comparison for an explanation of countywide millage rates. Includes millage levies for capital and for debt service.

(B) Includes properties within the City of Tampa and the unincorporated areas of the County. (C) Unincorporated area, includes Parks General Obligation millage for the first time in FY 94 (D) Reserves are budgeted but not expended. Actual expenditures for the operating budget, capital budget, or debt

service may include drawdown of reserves. Actual expenditures shown in previous years reflect refunds. (E) For FY 94 and FY 95, includes the impact of the County self-insuring its health insurance program.

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BUDGET SOURCES AND USES OF FUNDS

WHERE THE MONEY COMES FROM (SOURCES) FY 95 - ALL FUNDS

Charges For Services (9%) Misc. Rev. (6%)

lntergovt Rev. (10%) $148.3 million

Other Taxes (6%) $82.9 million

$135.8 million $88.4 million

Other Non-Rev. (7%) $103.2 million

Ad V al.orem Taxes (21%)

$304.8 million

Uc./Fines/Pexmits (I%) $8.6 million

Fund Balance (39%) $563.9 million

WHERE THE MONEY GOES (USES) FY 95 - ALL FUNDS

Reserves (26%) $375.6 million

Debt SeiVice (6%) $80.6 million

Capita!Budget (18%) $251.6 million

Operating Budget (49%)

$702.6 million

Note: Sources and Uses shown above exlude $392.2 million in Transfers In and Transfers Out, respectively. With the exception of Fund Balance, Other-Non-Revenues, and Transfers in, many of the other revenues are subject to a statutory 5% reduction. A.r the reduction mcry only apply to selected revenues in any category, the numbers in this chart have not been reduced. Totals may not add to 100% due to rounding.

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BUDGET SOURCES AND USES OF FUNDS

F¥92 FY93 F¥94 F¥95

SOURCES ACTUAL ACTUAL ADOPTED RECOMMENDED

Fund Bal Begin Of Year $465.2 $527.4 $550.4 $563.9

Revenue: Ad Valorem Taxes 269.8 266.2 295.2 304.8 Other Taxes 56.5 73.1 74.7 82.9 Licenses And Permits 6.0 6.3 6.3 6.6 Intergovernmental Revenue 114.5 119.5 136.9 148.3 Charges For Services 127.6 134.4 132.1 135.8 Fines And Forfeits 3.9 2.3 1.5 2.0 Miscellaneous Revenue (including interest and reimbursements) 103.3 89.8 90.1 88.4

Total Revenue 681.6 691.6 736.8 768.7

Transfers 278.6 403.7 319.6 392.2 Other 142.4 399.8 34.9 103.2 Less 5% Required By Law 0.0 0.0 (24.1) (25.4)

TOTAL AVAILABLE $1,567.7 $2,022.6 $1,617.6 $1,802.7

F¥92 FY93 F¥94 F¥95

USES ACTUAL ACTUAL ADOPTED RECOMMENDED Operating Budget: (A) Compensation $274.1 $286.7 $307.1 $321.7 Operating Expenses 244.8 264.4 308.5 361.0 Equipment 18.4 1M 13.7 19.8 Total Operating Budget 537.3 567.7 629.3 702.6

Capital Budget (Net of Reserves) 121.9 60.6 217.5 251.6

Debt Service 100.3 414.5 86.0 80.6

Transfers 278.6 403.7 319.6 392.2 Reserves (A) M 1.6 365.3 375.6

TOTAL USES $1,038.8 $1,448.2 $1,617.6 $1,802.7

Amounts expressed in millions of dollars, rounded to the nearest one hundred thousand. Detail may not add to totals because of rounding.

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DEPARTMENT BUDGET SUMMARY COMPARISON FY94 FY95

Adonted Recommended BOARD OF COUNTY COMMISSIONERS $1,192,210 $1,243,452

COUNTY ATTORNEY 3,665,135 3,944,974

COUNTY ADMINISTRATOR County Administrator 1,711,398 1,695,646 Data Management 100,000 5,531,661 Legislative Liaison Section 886,749 911,607 SUPPORT SERVICES Cable Communications 1,512,485 2,244,234 Citizens Assistance/Information 1,012,250 1,167,567 Engineering & Construction Services 13,625,345 30,538,077 Facilities Management 9,245,722 8,860,363 Fleet Management 6,982,974 6,982,974 Human Resources/Equal Opportunity 1,880,267 1,797,576 Information Technology 666,816 0

FINANCIAL SERVICES Budget~ 1,372,694 1,287,430 Commerce 549,839 603,219 Debt Management 247,484 260,433 Purchasing & Contracts 1,339,148 1,405,665 Insurance & Claims Management 792,592 595,482 Real Estate 1,474,570 1,468,750

COAIAIUNITYSERVICES Aging Services 8,334,841 8,427,848 Children's Services 6,253,569 6,552,638 Community Action & Planning Agency 6,244,099 6,280,477 Community Health & Human Services 74,728,488 82,524,878 Cooperative Extension Svcs 767,757 813,895 Employment & Training 4,396,694 5,521,336 Head Start Department 10,558,316 11,795,880 Library Services 12,285,237 13,224,516 Mosquito & Aquatic Weed Control 0 0 Museum of Science & Industry 3,487,358 6,506,551 Social Services 7,770,573 10,142,009 AIUNICIPAL SERVICES Animal Services 2,816,428 3,105,366 Building Department 4,407,895 4,715,776 Emergency Medical Services 9,323,717 9,792,613 Engineering Services 0 0 i_~_:-j

Fire Department 21,871,608 22,999,712 Housing & Commuaity Development 19,810,761 21,043,422 Medical Examiner 1,677,361 1,764,009 Parks & Recreation 15,247,701 16,089,642 Planning & Development Management 8,945,025 9,049,947 Public Safety 5,880,892 5,870,730 Public Utilities 48,718,868 71,625,841 Road & Street Maintenance 29,526,631 29,759,996 Solid Waste 33,037,333 33,698,450

TOTAL COUNTY ADMINISTRATOR $379 491485 $446 656.216

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DEPARTMENT BUDGET SUMMARY COMPARISON FY94 F¥95

Adouted Recommended ELECTED OFFICIALS

Clerk,BOCC $7,465,953 $7,763,982 Clerk of the Circuit Court 3,407,250 3,694,996 Clerk of the County Court 6,870,476 6,787,893 BOCC - Juclicial Services 3,295,573 3,351,488 Clerk-Value Adjustment Board 311,325 333,888 Supervisor of Elections 1,875,832 2,428,210 Hillsborough Cty. Sheriff 137,165,017 146,554,382 State Attorney Part I 698,630 765,824 State Attorney Part II 1,301,584 1,398,797 Property Appraiser 8,057,353 8,633,508 Tax Collector 10,656,470 11,173,950 Public Defender 840,945 941,205 TOTAL ELECTED OFFICIALS 181,946,408 193,828,123

JUDICIAL 10,641,268 10,930,138

BOARDS, COMMISSIONS & AGENCIES Law Library Board 402,991 413,553 Metropolitan Planning Organization 1,252,125 964,728 Civil Service Board 1,315,837 1,381,050 Planning Conuuission 3,935,749 3,384,912 Legislative Delegation 129,011 130,861 Environmental Protection Conuuission 8,770,358 9,871,945 Soil Conservation Board 104,518 112,573 Public Transportation Conuuission 469,364 483,765

TOTAL BOARDS, COMMISSIONS 16,379,953 16,743,387

NON-DEPARTMENTAL ORGANIZATIONS Capital Improvement Program Projects 203,491,231 221,886,203 Allotments by Legislative Act PT I 41,567,244 49,605,887 Allotments by Legislative Act PT II 5,045,000 5,186,900 Debt Service 86,068,826 80,727,731 Consolidated Street Light District 3,310,400 4,010,500

TOTAL NON-DEPARTMENTAL ORGANIZATIONS 339,482,701 361,417,221

NON-EXPENDITURE ACCOUNTS Interfund Transfers 174,162,261 184,558,141 Intrafund Transfers 145,404,490 207,680,938 Reserves and Refunds 365,264,215 375,689,855 TOTAL NON-EXPENDITURE ACCOUNTS 684,830,966 767,928,934

TOTAL BOARD OF COUNTY COMMISSIONERS AND CONSTITUTIONAL OFFICERS $1,617,630,126 $1,802,692,445

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CAPITAL PROJECTS BUDGET SOURCES & USES OF FUNDS

(in Thousands $) FY92 FY93 FY94

SOURCES Actual Actual Adopted Beginning Fund Balance $167,005.0 $203,019.2 $184,230.4 Revenues: 0

Ad Valorem Taxes 5,652.0 0.0 50.0 Gasoline Taxes 9,911.0 10,124.0 8,601.5 Grants 6,073.0 986.0 5,345.8 Impact Fees 8,049.0 8,260.0 8,158.5 Interestllaruings 5,259.0 4,679.0 2,497.1 State Grants & Shared Revenues 0.0 0.0 300.0 Miscellaneous 453.0 298.0 63.3 User Fee 3.353.0 3.714.0 1.496.0

Total Revenue 38,750.0 28,061.0 26,512.3

Transfers In . 16,631.0 25,085.0 8,483.8 Proceeds from Sale of Property 447.0 0.0 0.0 Less Reserve for Uncollectibles 0.0 0.0 (1,757.7) Other Non Revenue-Financing 90.924.0 20.705.0 0.0

TOTAL SOURCilS $313,757.0 $276,870.2 $217,468.8

FY92 FY93 FY94 USES Actual Actual Adopted Transportation $23,220.5 $24,982.5 $72,111.4 Parks 2,230.4 1,209.4 7,720.1 Water/Wastewater 24,178.7 11,712.4 68,993.0 Storm water 1,543.1 1,860.7 2,983.2 Solid Waste 1,254.7 1,774.7 4,196.1 Fire 513.3 536.3 1,572.7 Governments Buildings 35,307.7 8,845.5 35,712.3 Correctional Facilities 243.1 3,803.8 1,323.6 Library Buildings 44.3 311.6 1,187.1 IlLAPP 20,790.3 4,101.9 18,459.0 HUD Facilities 268.9 410.1 2,022.1 Other 29.4 14.6 562.2 Other Non-CIP* 12.232.9 1.072.2 626.2

TOTAL USilS $121,857.4 $60,635.6 $217,468.8

* Other Non-CIP expenditures are Capital Budget Expenditures not related to the Capital Improvement Program.

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FY95 Recommended

$185,038.3 0

0.0 9,538.7

207.0 9,388.2 3,232.1

0.0 0.0

2.495.7 24,861.7

23,939.8 0.0

(1,731.7) 19.509.9

$251,617.9

FY95 Recommended

$85,701.0 13,871.3 63,345.3 4,130.7 4,145.4 2,029.9

33,642.5 327.1

2,442.2 39,242.8

1,796.7 543.6 399.5

$251,617.9

DEBT SERVICE BUDGET SUMMARY

DEBT REQUIREMENTS FOR COUNTY DEBT ONLY ($ IN MILLIONS)

FY92 FY93 FY94 FY95 ACTUAL ACTUAL ADOPTED RECOMMENDED

DEBT SERVICE BUDGET Principal Payments (A) $28.789 $17.419 $30.267 $31.432 Interest Payments (A) 52.681 ~ 52.434 48.186

TOTAL COUNTY DEBT SERVICE $81.470 $72.238 $82.701 $79.618 (Principal and Interest Only)

Debt Administration Expenses (B) 2.321 0.401 0.715 0.533 Capitalized Interest (C) 0.000 1.225 2.605 0.400 Principal Portion of Refunded Bonds (D) 0.000 307.424 0.000 0.000 Redemption of Short Term Loans 16.000 33.000 0.000 0.000 Interfund Short Term Loans 0.479 0.230 ill!QQ 0.066

TOTAL DEBT SERVICE FUND $100.270 $414.518 $86.021 $80.617

TOTAL COUNTY DEBT ISSUED $904.371 $989.880 $959.045 $959.045 (As of Fiscal Year End)

TOTAL COUNTY DEBT OUTSTANDING (D) $839.291 $933.884 $902.551 $871.126

COUNTY DEBT OUTSTANDING BY TYPE:

General Obligation Debt $50.920 $57.185 $53.085 $50.320 Self-Supporting Debt $605.991 $625.499 $604.563 $582.999 Non Self-Supporting Debt $182.381 $251.200 $244.902 $237.807

(A) These amounts differ from debt service payments shown in later schedules which do not include principal and interest payments on capital leases. (B) Includes fees paid for trustees, paying agent and registrar services, remarketing and Letter-of-Credit fees and arbitrage rebate liabilities. (C) Interest paid with funds set aside from bond proceeds. (D) The principal amount of outstanding bonds refinanced with the proceeds of refunding bonds.

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Summary Information on the Recommended FY 95 Budget

TI!is document, the Executive Summary, provides certain summary information on the County Administrator's Recommended FY 95 Budget. The summary information is presented in different breakdowns.

One breakdown shows the budget by type of expenditure. For example, the operating component of the budget generally pays for day-to-day expenses (compensation, operating expenses, and equipment). Major types of revenues are also presented. These breakdowns by type of revenue and expenditure cross all funds, and they cross all organizations.

Another type of breakdown that is presented is an organizati01ial breakdown of the budget. The organizational table provides a sununary of the resources that have been assigned to County departments and agencies. The breakdowns by organization cross all funds, and they cross all types of expenditure.

Additional, comprehensive detail is presented in a second document, the Operations and Funding Guide. TI!is second document provides three types of detailed information. First, it provides fund sununaries that show how much of each fund is allocated to various organizations, and the sources of revenue for each fund. Second, it provides information of the mission and key objectives for each organization, and breaks out an organization's budget by type of expense and by fund. It also provides a summary position count. Third, it provides detail on the number of positions within each organization by job classification. Due to the size of the Operations and Funding Guide and the detail contained in it, it is available several days after the Executive Summary.

The breakout of expenditures by fund is an important part of understanding which organizations rely on the use of ad valorem taxes and other unrestricted County revenues. For example, the budget for the County Administrator's organization increases over $67 million in FY 95, but less than one million of that increase occurs within the General Fund and MSTU fund, which rely on ad valorem taxes and other unrestricted revenues.

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Explanation of Summary Information

Revenues and Other Sources

Detail is provided on the growth in ad valorem (property) taxes later in this document. All of the growth in ad valorem revenue is due to new construction and reassessments that increased the size of the tax base. Growth in other taxes reflects increased revenue from existing taxes: the indigent care sales surtax, tourist development taxes, and gasoline taxes.

Some revenues have been reclassified based on accounting standards. For example, interest earnings within County enterprise activities (solid waste and water/wastewater operations) were reclassified from "miscellaneous revenue" to "other non-revenue." Such a change has no bottom line impact but shows up on revenue tables as an apparent reduction in one revenue category and increase in a non-revenue category. The "other" category also reflects bond proceeds anticipated in FY 95: permanent financing of the Yankees Stadium complex, the 800 megahertz radio system, and the advanced transportation program. Finally, this category reflects continued implementation of the County's self-insurance program with interorganizational charges.

Expenditures and Other Uses

Compensation increases reflect merit pay salary adjustments, related benefits costs, and the addition of new staff. TI!is category crosses funding sources, so it covers not only the positions recommended in the County Administrator's budget message, it also covers positions that have been added during FY 94 that were funded with increased revenue from federal and state grants.

Operating expenses typically reflect costs of supplies, utilities, fuel, rent, professional services contracts, etc. TI!is category also includes funds provided by the County to support outside organizations. One factor that drives up this class of expenditure in FY 95 is an anticipated payment to

the Sports Authority as part of the financing plan for the Yankees stadium complex. While the actual amount of the transaction may change before the FY 95 budget is adopted in September, the Recommended FY 95 budget reflects a $16 million payment to the Sports Authority. Other large factors in the change in operating costs include a higher Public Utilities budget for bulk water purchases. In total, the Public Utilities budget, which does not require a rate increase in FY 95 based on anticipated system revenue, reflects $6 million in added operating expenses.

Equipment increases are largely accounted for by the Sheriffs Office, startup equipment for the Data Management Department, and a higher book budget for libraries.

Capital reflects a larger budget for transportation and environmental land acquisitions ("ELAPP"), as sbown in the capital projects budget sununary table.

Debt Service reflects lower overall interest payments due to bond refunding in FY 94.

Transfers reflect changes in the structure of restricted funds, resulting in a higher level of transfers between accounts for accounting purposes.

Reserves reflect a variety of changes. First, the County has issued new debt, which changes the types and amounts of required reserves. Second, reserves have been established for anticipated health insurance premium increases that could not be distributed into departments' budgets prior to July 14. These reserves will be distributed prior to fmal adoption of the budget in September. Finally, cash and contingency reserves in the funds that receive ad valorem taxes -- the General Fund and the MSTU Fund -- were cut by $1.5 million to help accommodate the budget increase requested by the Sheriffs Office for FY 95.

Department Summaries

Several department totals in the Recommended FY 95 budget require explanation:

The Data Management Department budget reflects reorganization of over 40 existing staff into a centralized data management program. A one-time purchase of equipment is reflected in this cost Offsetting much of this cost are cuts in other

11

departments' budgets, and revenue from systems that will begin to be operated by Data Management staff late in FY 95 that currently are operated by the Clerk's MIS staff. By FY 96, net savings sbould occur as a result of the investment in this organization.

The Engineering and Construction Services Department budget reflects, in part, the $16 million anticipated payment to the Sports Authority on the Yankees complex.

The Community Health and Human Services Department budget reflects about $8 million in higher payments to outside contractors under the indigent health care program. Several other departments' budgets reflect mid-year expansions resulting from available grants and state contracts for services.

The Museum of Science and Industry budget reflects the pass-through of increased revenues that are anticipated when the expansion is completed.

The Public Utilities Department budget reflects, in addition to the operating expenses previously mentioned, a $15 million increase in capital projects managed by Public Utilities staff.

The Sheriffs budget increase reflects, in part, operation of an HRS facility at Falkenburg Road for which the County's costs are reimbursed.

The Facilities Management Department and the Planning Commission budgets reflect, in part, rent savings from moves to the County Center.

ECONOMIC INDICATORS

The Hillsborough County budget is affected significantly by economic conditions known as "drivers" for service demand and for major revenues.

As indicated in the graphs that follow, the low point of the County's economic cycle was in 1991 for some economic indicators and 1992 for others. The graphs present the most recent semi-annual estimates of Fishkind & Associates, lnc., an econometric forecasting firm that provides shortterm economic indicators for 40 of the 67 Florida counties, as well as State of Florida and national forecasts. If the forecast bears out, we will see a slowdown in growth in 1995 with strengthening in growth in the local economy for 1996 through 1997.

While there is no expectation we will see a repeat of the growth experience in the mid-80's, growth in population and employment should recover from the loss of jobs experienced in 1991. Population growth is not, however, expected to match that of the state as a whole.

Unemployment is expected to remain somewhat high in the near term. As the economy slowly strengthens, people re-enter the labor force and raise the unemployment count. New job growth, however, should gradually lower the unemployment rate.

The number of tourists visiting Florida is expected to continue growing for 1994 through 1997 after falling in 1991 and 1992. Even more important is a forecasted increase in tourist expenditures. Busch Gardens continues to be one of the leading tourist attractions in the State. The Tampa Convention Center will draw additional visitors to the County. Tourism generates the local option resort tax (a "bed tax") that is used to promote tourism and accounts for about twenty to twenty-five percent of all sales taxes returned to the county.

Income is probably the best gauge of an economy at the local level. As shown in the graph of income, there has been no reduction in income. When compared against the inflation figures shown on the adjacent graph, there has been no decline even if adjustment is made for inflation (i.e., no decline in "real income"). That suggests there has been no recession experienced at the local level - although

13

there may have been a reduction of one or two quarters that does not show up in these annual estimates. More likely, the county has experienced a period of minimal growth. Improvement is forecast for 1994 through 1997 with slower growth in 1995.

One of the most volatile sectors of an economy is the construction industry. Housing starts reached a low in 1991 wltile commercial construction has been stagnant from 1991 through 1994. Except for 1995, growth in residential construction will continue through 1997. However, the current ltigh downtown vacancy rates in conjunction with the difficulty in obtaining fmancing for large projects will result in a lower growth rate for commercial construction. Along that line, the growth in construction activity in 1994 should be reflected in growth in the tax base measured on January 1, 1994 wltich forms the basis for FY 96 County tax revenue.

Along with many other governments, ffillsborough County has taken advantage of relatively low municipal bond rates in issuing new long-term debt.

ECONOMIC INDICATORS

0.08 om 0.06

0.05

0.04 0.03 0.02 O.QI

0

.; a s 0

~ .,;

~ 0

•

POPULATION & EMPLOYMENT HILLSBOROUGH COUNTY

25

20

15

10

5

0

-5

-10

-15

-=-

'

'

87 88 89 90 91 92 93 94 95 96 97

CALENDAR YEAR

I 0 Populolion Ill Employment I

UNEMPLOYMENT FLORIDA VS. HILLSBOROUGH

COUNTY

·:::::::"""-----. -~ - ""•=-"!...---- •

...... -·-~

;•

n a n oo 91 ~ ~ M ~ % ~

CALENDAR YEAR

Hillsborough II- Florida

Source: Fishkind & Associates,Inc.

60

50

10

0

14

POPULATION GROWTH FLORIDA VS. HILLSBOROUGH

COUNTY

0.045_,.------------,

0.04 0.035 0.03

0.025 0.02

O.QIS O.Dl

0.005 0

=

86 87 88 89 90 91 92 93 94 95 96 97

CALENDAR YEAR

I 0 Hillsborough Ill Florida

FLORIDA TOURISM

$30

• • $25 1-L-\ r f• • • • • • $20 "' -o>x fB

86 87 88 89 90 91 92 93 94 95 96 97

CALENDAR YEAR

'"" $15 o· 5.. " -• a '''" $10 ........ ~

$5

$0

Tourists • Expenditures I

ECONOMIC INDICATORS

25

"' 20 '0 a ~ 15

.s 10 ~ 6

5

0

INCOME HILLSBOROUGH COUNTY

. -· ~. \

0.1

O.o75

• • • • •

• •• "' 0.05 ~

87 88 89 90 91 92 93 94 95 96 97

CALENDAR YEAR

0.025

0

Billions of$ II-%Otange

HOUSING STARTS HILLSBOROUGH COUNTY

87 88 89 90 91 92 93 94 95 96 97

CALENDAR YEAR

I D Sing!~ Family i!!l Multi-Fomily

'8

Source: Fishkind & Associates, Inc.

§ "' '!1 .;; 8

1 >

15

INTEREST & INFLATION RATES

87 88 89 90 91 92 93

CALENDAR YEAR

I D Municipal Bond• filii Inflation in GDP

COMMERCIAL CONSTRUCTION HILLSBOROUGH COUNTY

$500

$450

$400

$350

$300

$250

$200

$!50

$!00 $50

$0 87 88 89 90 91 92 93 94 95 96 97

CALENDAR YEAR

BASIC INFORMATION ON PROPERTY TAXES

The calculation of the assessed value of real and tangible personal property and how much of this value is subject to ad valorem taxation varies from state to state. In Florida, each county has an elected Property Appraiser whose office supervises the valuation process following the appropriate State laws, regulations and professional guidelines.

EXEMPTIONS

Florida law provides specific exemptions to reduce the value of property subject to taxation. Some of the more frequently used exemptions are:

Homestead - For all permanent residents of Florida, the first $25,000 of the value of an owner-occupied residence is exempt.

Government - All property owned by a government is exempt

Widows - An additional $500 in value is exempt if the resident-owner is a widowed permanent resident.

Disability - In addition to any other exemptions, an additional $500 in value is exempt for totally and permanently disabled or bliud residents.

Institutional All properties of non-profit organizations used for literary, scientific, educational and charitable purposes are exempt.

COMPUTING PROPERTY TAXES

To compute the property tax on a parcel, you need to know three factors: the assessed value as determined by the Property Appraiser; the amount of the value which is not subject to the tax due to the application of exemptions, and the millage rate authorized by a taxing authority. For example:

Statt with the

ASSESSED PROPERTY VALUE = $75,000

Minus the amount of any EXEMPTIONS:

For example, Homestead Exemption= (25.000)

This results in a

TAXABLE PROPERTY VALUE= $50,000

16

Then divide the TAXABLE VALUE BY 1,000 =50

Multiply this answer by the levied millage, for instance, using the FY 95 recommended countywide millage rate of 8.2094 per thousand dollars of taxable value, the countywide property tax for this property would be:

50 X 8.2094 Mills= $410.47

THEAGGREGATEROLLED-BACKRATE

In recent years, much of the legislation in Florida governing the setting of millage rates has been centered on the concept of the "rolled-back rate". The "rolled-back rate" is that millage rate which when applied to the total amount of taxable value of property (excluding new constmction) produces the same amount of tax dollars as the previous year.

The "rolled-back rate" is used as a standardized point of comparison to show how millage rates are changing from one year to the next. The purpose of the "rolled-back rate" calculation is to allow local governments in Florida to identify when they are drawing more tax revenue from existing property. For example, an increase in the assessment of existing property draws more tax revenue for governments even when those governments keep the same millage rates as the previous year. The aggregate "rolled-back rate" varies significantly from the total millage rate because the combined ad valorem revenue from the General Revenue Fund, MSTU, and Library Fund is divided by the countywide taxable value in calculating the "aggregate rolled-back rate" even though ad valorem revenue from the Special Library District millage and the MSTU millage is generated from smaller tax bases.

At the public hearings in September, the County is required to show how proposed millage rates compare to the "aggregate rolled-back rate" and to identify why the proposed rate differs from the "aggregate rolled-back rate".

The following example demonstrates how to compute the "aggregate rolled-back rate", the millage rate that will generate the same ad valorem tax revenues exclusive of new constmction, additions to stmctures, etc.

BASIC INFORMATION ON PROPERTY TAXES

CALCULATION OF THE AGGREGATE ROLLED-BACK RATE

PROPERTY TAXES COLLECTED IN THE PREVIOUS YEAR FOR THE GENERAL REVENUE FUND, MSTU, AND LffiRARY DISTRICT= $281,244,514

DIVIDED BY

THE TAXABLE VALUE OF COUNTYWIDE PROPERTY LESS NEW CONSTRUCTION IN THE CURRENT YEAR= $25,467,258,387

EQUALS THE AGGREGATE ROLLED-BACK RATE OF

11.0434 MILLS OR $11.04 PER $1,000 OF TAXABLE VALUE

A SIMILAR COMPUTATION IS PERFORMED USING THE MILLAGES AS PROPOSED FOR THE NEXT FISCAL YEAR.

THE CALCULATED PROPOSED AGGREGATE MILLAGE RATE FOR FISCAL YEAR 1995 IS 11.3118 MILLS OR 2.430% OVER THE AGGREGATE ROLLED-BACK RATE.

10.0

8.0

$ 6.0 "' ::;; .s 4.0

2.0

0.0

HILLSBOROUGH COUNTY

AD VALOREM MILLAGES

a a ~ M ~ M ~ ~ E w w ~ ~ w ~

Rec

Fiscal Year

Ill library 0Msro !ill Countywide I

17

PROPERTY VALUATION

TOTAL PROPERTY VALUATION

.~ iii $15.0 +------------..-'"'-------------------

..s

$5.0

$0.0

82 83 84 85 86 87 88 89 90 91 92 93 94

CITIES UNINCORPORA1ED -II COUNTYWIDE

NEW CONSTRUCTION VALUATION

$0.9 ,------------------------------

$0.8 +----------7""'-~c=--------------------

$0.7 +------+--------">..,_. _______________ _

$0.6 -!------+---=--------"''==·-=--=------------§ $0.5 +----+---! $0.4 +----"--

$0.3

$0.2

$0.1

$0.0

82 83 84

CITIES

85 86 87 88 89 90 91 92 93 94

fl UNINCORPORATED • COUNTYWIDE

19

MILLAGE COMPARISON FY92 FY93

ADOPTED ADOPTED MILLAGE LEVY MILLAGE LEVY

COUNTYWIDE OPERATING

General Revenue Fund 7.8501 $191,612,367 7.9048 $190,607,012 Public Health Unit 0.0604 1,474,298 0.0000 0

TOTAL COUNTYWIDE OPERATING 7.9105 193,086,665 7.9048 190,607,012

CAPITAL Environ. Sensitive Lands 0.2500 6,102,227 0.0000 0

TOTAL COUNTYWIDE, EXCL. DEBT 8.1605 199,188,892 7.9048 190,607,012

DEBT SERVICE County Jail Bonds 0.0223 544,319 0.0250 602,820 Parks & Recreation Bonds 0.0338 825,021 0.0368 887,352 Environ. Sensitive Lands 0.0000 0 0.2500 6,028,205

TOTAL COUNTYWIDE, INCL. DEBT 8.2166 200,558,232 8.2166 198,125,389

NON COUNTYWIDE OPERATING

General Purpose MSTU 5.0621 69,082,221 5.0621 68,920,435 Library Services 0.4481 10,386,215 0.4481 10,227,425

TOTAL NON COUNTYWIDE, EXCL. DEBT 5.5102 79,468,436 5.5102 79,147,860

DEBT SERVICE Parks & Recreation Bonds 0.0000 0 0.0000 0

TOTAL NON COUNTYWIDE, INCL. DEBT 5.5102 79,468,436 5.5102 79,147,860

TOTALBOCC 13.7268 $280,026,668 13.7268 $277,273,249

TAXABLE PROPERTY VALUES FY92 FY93

COUNTYWIDE Value of Existing Property $23,950,992,495 $23,724,199,661 Value of New Construction 457,915,298 388,619,378

Total Taxable Value $24,408,907,793 $24,112,819,039

UNINCORPORATED(MSTU) Value of Existing Property $13,317,565,267 $13,361,487,350 Value of New Construction 329,383,854 253,501,581


SPECIAL LffiRARY DISTRICT Value of Existing Property $22,747,406,304 $22,476,710,283 Value of New Construction 430,935,443 347,268,692


20

MILLAGE COMPARISON FY94 FY95

ADOPTED RECOMMENDED MILLAGE LEVY MILLAGE LEVY

COUNTYWIDE OPERATING

General Revenue Fund 7.9048 $199,006,273 7.9048 $205,394,996 Public Health Unit 0.0000 0 0.0000 0

TOTAL COUNTYWIDE OPERATING 7.9048 199,006,273 7.9048 205,394,996

CAPITAL Environ. Sensitive Lands 0.0000 0 0.0000 0

TOTAL COUNTYWIDE, EXCL. DEBT 7.9048 199,006,273 7.9048 205,394,996

DEBT SERVICE County Jail Bonds 0.0242 609,244 0.0222 576,835 Parks & Recreation Bonds 0.0353 888,691 0.0324 841,868 Environ. Sensitive Lands 0.2500 6,293,843 0.2500 6,495,895

TOTAL COUNTYWIDE, INCL. DEBT 8.2143 206,798,051 8.2094 213,309,594

NON COUNTYWIDE OPERATING

General Purpose MSTU 5.0621 71,886,818 5.0621 74,655,793 Library Services 0.5662 13,503,904 0.5662 13,870,458

TOTAL NON COUNTYWIDE, EXCL. DEBT 5.6283 85,390,722 5.6283 88,526,251

DEBT SERVICE Parks & Recreation Bonds 0.0526 746,972 0.0510 752,147

TOTAL NON COUNTYWIDE, INCL. DEBT 5.6809 86,137,694 5.6793 89,278,398

TOTALBOCC 13.8952 $292,935,745 13.8887 $302,587,992

TAXABLE PROPERTY VALUES FY94 FY95

COUNTYWIDE Value of Existing Property $24,662,790,500 $25,467,258,387 Value of New Construction 512,580,555 516,320,740


UNINCORPORATED(MSTU) Value of Existing Property $13,882,313,638 $14,380,390,074 Value of New Construction 318,673,683 367,598,598


T:l SPECIAL LIBRARY DISTRICT Value of Existing Property $23,370,821,206 $24,002,268,398 Value of New Construction 479,239,065 495,185,432


21

General Fund 7.9048 mills

MSTUFund 5.0621 mills

MILLAGE COMPARISON

Hillsborough County's Use of the CountywidelO-mill Cap

Hillsborough County's Use of the MSTU 10-mill Cap

22

Library Fund 0.5662 mills

1.5290 mills Available

4.9379 mills Available

IMPACT OF LOCAL TAXES ON A FAI\flLY IN THE UNINCORPORATED AREA OF HILLSBOROUGH COUNTY WITH A HOUSE ASSESSED

AT $75,000 LESS A $25,000 HOMESTEAD EXEMPTION ($50,000 TAXABLE VALUE)

FY91 FY92 FY93 FY94 FY95 REC

TAXES LEVIED COUNTYWIDE BOCC - General Fund $417.73 $392.51 $395.24 $395.24 $395.24 BOCC - General Obligation Debt 2.72 2.81 15.59 15.48 15.23 County Health Department 2.89 3.02 0.00 0.00 0.00 Environmentally Sensitive Land 12.50 12.50 0.00 0.00 0.00 Southwest Florida Water Mgmt District • 20.00 17.00 16.10 21.10 21.10 School Board (incl. General Oblig.Debt)* 468.51 477.37 485.38 486.24 Not Avail. Children's Board • 14.41 14.14 18.00 19.90 20.80

Port Authority •• 0.00 12.50 17.50 17.50 Not Avail.

TOTAL COUNTYWIDE TAXES $938.76 $931.84 $947.81 $955.46 Not Avail.

TAXES LEVIED WITHIN SPEClFIC AREAS

Library District $22.41 $22.41 $22.41 $28.31 $28.31 Municipal Services Taxing Unit (MSTU) ••• 203.11 253.11 253.11 253.11 253.11 MSTU Parks General Obligation Debt *** 0.00 0.00 0.00 2.63 2.55 Hillsborough Area Regional Transit* 25.00 25.00 25.00 25.00 25.00 Hillsborough River Basin* 5.05 4.85 4.85 7.35 14.75

TOTAL TAXES WITHIN SPECIFIC AREAS $255.57 $305.36 $305.37 $316.40 $323.72

jTOT AL AD VALOREM TAXES $1,194.33 $1,237.20 $1,253.18 $1,271.85 Not Avail.

$ change from preceding year: $42.87 $15.98 $18.67 Not Avail.

% change from preceding year: 3.6% 1.3% 1.5% Not Avail.

Notes: * Not a tax levy, assessment, or fee of the Board of County Commissioners (BOCC) ** The Port Authority funding in FY 90 & 91 was not tied to a specific millage and was included in the

BOCC General Fund millage levy. Beginning in FY 92, th1s is a direct levy by the Tampa Port Authority. *** Homeowners residing within the municipallties of Tampa, Temple Terrace, or Plant City pay city

taxes instead of the MSTU taxes. FY 94 icludes a millage for a voter approved MSTU general obligation debt to expand park facilities. The Hillsborough Area Regional Transit Tax is not levied in Plant City. The Library District tax is not paid in Temple Terrace or Plant City. For FY 95 the levy for Tampa would be $327, for Temple Terrace $221, and for Plant City $235.

Assumptions: Excludes any exemption other than the Homestead exemption. Excludes any other special district assessment (i.e., street lighting tax district or maintenance district). For the purposes of consistency, the Hillsborough River Basin was selected. Other basins have

different tax rates. In FY 93, the tax levy for Environmentally Sensitive Land became part of the voter approved General

Obligation Debt. Previously, it had been an operating tax levy by the BOCC.

23

MAJOR COUNTY REVENUES

To fmance its operations and construction activities, Hillsborough County uses a variety of revenues such as taxes, special assessments, fees, intergovernmental funds and service charges. For example, user fees finance the County's water and wastewater utility, gasoline taxes fmance roadway construction and maintenance and permit fees support building permit and inspection programs.

The major factors which underlay increases in revenues are the overall growth in population, growth in specific service populations, increases in real disposable income (which measures residents' after tax buying power, after adjustment for inflation) and inflation. These factors or "drivers" impact most revenues directly and indirectly.

In this section, we will discuss the major revenues and how they have changed over time.

AD VALOREM TAXES

In modern times, property taxes, also called ad valorem taxes, have traditionally been the major sources of revenues for local governments, large and small. In Hillsborough County government's case, these taxes comprise the largest percentage of all revenues, 40 percent

Hillsborough County levies a property tax on all county property including those in municipalities, for services made available throughout Hillsborough County. This is called the Countywide Property Tax. Also levied is a property tax for municipal-type services supplied exclusively to the unincorporated area. An example of such a service is fire protection supplied by the Hillsborough County Fire Department. This is called the Municipal Services Taxing Unit (MSTU) property tax. For operations of the city-county library system, the County levies a third property tax called the Special Library District Tax. It applies only to property in the City of Tampa and in the unincorporated areas of the county.

24

Besides the property taxes levied by the Board of County Commissioners, other jurisdictions in the County have the authority to levy additional property taxes. Entities such as the three municipalities, the Hillsborough County School Board, the Hillsborough Area Regional Transit Authority, the Southwest Florida Water Management District, the Tampa Port Authority and the Children's Services Board levy ad valorem taxes. Each of these tax levies are placed on a consolidated tax bill sent to the individual tax payer.

In addition to these tax levies, the county is required to levy a separate property tax for the annual debt service requirements for the payment of voter approved general obligation bonds. In the past, voters have approved bonds for jail facilities, park facilities, and for the acquisition of environmentally sensitive. land. In November 1992, residents of the unincorporated areas of the county approved a referendum to fmance additional park facilities for those portions of the county. As it benefits on! y the unincorporated areas, this new general obligation debt is funded through an MSTU millage.

Property tax revenues are dependent upon the assessed (taxable) value of real and personal property. Growth in this tax base increases the amount of county property tax revenues without increasing the tax rate. Over the past several years because of slower appreciation of existing property and the slowdown of the amount of new construction, the increase in taxable value has slowed from an annual average increase of 13 percent during the early to mid-1980's to an actual decline in FY 93. In FY 95, taxable values increased 3.2% over the previous July's values. Since property taxes are the single largest source of revenue, this slow growth has caused the county to re-examine its needs and to reduce its reliance on property tax revenue to support existing programs.

Estimating the amount of revenue which will be generated by these taxes is done by the


Hillsborough County Budget Department based ou a certification of taxable value made by the Property Appraiser.

The Chart, Current Ad Valorem Taxes, shows the growth of the County's ad valorem tax revenues, Countywide and MSTU, over more tban a decade.

OTHER TAXES

Tills category includes revenues from non ad valorem sources such as special assessments, certain types of gas and sales taxes and tourist development taxes.

Indigent Care Sales Surtax: Tills is the source of funding for the Indigent Health Care Program being implemented by Hillsborough County. Tills type of sales surtax was first imposed at a rate of 0.25 percent for a two year period in FY 85. In FY 92, it was imposed again after being authorized by the Board of County Corrunissioners. Tills surtax adds 0.5 percent to the sales tax charged on certain types of goods and services purchased in Hillsborough County.

The chart for this tax displays the revenues for the years the surtax was originally imposed and the present revenue trends. The large increase between FY 92 and FY 93 was caused by the December 1991 effective date of the surtax giving only eight collections for the year.

Gaso!jge Taxes: The Taxes and Assessments classification of revenue includes two gasoline taxes, the Voted (9th Cent) Gasoline Tax and the Local Option (6 Cents) Gasoline Tax. Taxes collected within Hillsborough County are distributed among the four general government jurisdictions.

They are importaot sources of funding for road network improvement, maintenance, and for the road re-surfacing program. As io the case of most gasoline taxes and as evidenced by the charts, they have shown relatively little growth

in the last several fiscal years due to increasing use of fuel efficient vehicles.

Local Option TQ!!rj:;t Deyelonment Tax: Tills tax was increased io 1990 from 3 percent to 4 percent to provide the fourth cent as a pledge against sports facility debt. The revenue from the frrst 3 percent is distributed locally for tourist and econontic development. A declioe in travel in the fall and winter of 1992 resulted in FY 93 projections lower than FY 92. However, this has been partially mitigated by a greater amount of travel during the spring and summer of 1993. There is an expectation that travel will increase into FY 95.

CHARGES FOR SERVICES

Tills type of revenue comprises 19 percent of the FY 95 budget. Tills category includes revenues from such services as ambulance transports, water and sewer service charges and special recreation programs. Over the past several years, the County has increased its reliance on this type of revenue. As an example of this classification of revenue, the chart labeled EMS Ambulance Service Fees shows the gradual increases especially since FY 89. In preparing the County's annual budget, the departments whose operations are supported by these fees estimate the amounts to be generated.

INTERGOVERNMENTAL REVENUES

State-Shared Reyegues: Two State-shared revenues are important sources of funding for the County. Local Government Half-Cent Sales Tax has been a growing source of revenue for the County since FY 83. Current estimates project an FY 95 growth of 4.5% over FY 94.

A second importaot State-shared revenue is State Revenue Sharing. Counties' Revenue Sharing is based primarily on a share of the State intangibles tax with a small contribution from one cent of the Cigarette Tax. While revenue from this second source dropped off


sharply in FY 91, a substantial recovery occurred in FY 92. This recovery is expected to continue through FY 95.

The County (7th Cent) Gasoline Tax is considered a State-Shared Revenue since its distribution is based on a State-set formula -not based purely on county of collection. This revenue is used along with other gasoline taxes and road network impact fees to fmance road network improvements and maintenance. The chart shows a projected flattening of the revenue in FY 93 and FY 95 after a gradual decline in FY 89 through FY 92.

FederaJ_.Sbared Reyenuew It is just as important to point out what revenue sources the County has lost in recent years. The County lost a major revenue source in FY 87 when the Federal government stopped the Federal Revenue Sharing Program. In its last year, this program generated approximately $7 million for the County's use in capital programs. In order to continue with the same level of effort, the

26

County is now forced to rely on state and local resources.

LICENSES AND PERMITS

Although this category does not provide a large percentage of revenues, it is worth mentioning because of its relationship to the regulatory functions of the County government and its use to gauge the activity of growth related segments of the County's economy.

For example, the chart showing the Building Department's fee revenue since 1981 illustrates the cyclical nature of the building industry over the past 13 years. Mter a peak in building activity in 1985 and some positive change in 1989 which could be attributed to fee increases, the chart clearly shows the decline in activity since the late 1980's. Increases in local construction activity has produced some increases since FY 91. (See the material on "Economic Indicators".)

20%

15%

10%


Changes in Hillsborough County Property Values

The growth in property values 5% has slowed since 1987.

In 1992, property values declined.

-5%+-----.----.~---,----,-----,-----,----,-----,-----,----,-----+

83 84 85 86 87 88 89 90 91 92

As of January 1

Each year represents the percentage change from the previous year. Values are based on the July 1 data provided by the Property Appraiser's Office.

"' = 0 :::

~

$300.0

$250.0

$200.0

$150.0

$100.0

$50.0

$0.0

Current Ad Valorem Taxes Classification: Ad Valorem Taxes

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj.proj.

Fiscal Year

0 General Fund Ill! MSTU Fund II Library Fund Bl Envir. Sens. Land

27

93 94

$60.0

$50.0

., $40.0 c .s $30.0

~ $20.0

$10.0

$0.0

$5.0

$4.0

., $3.0 c

0 ·~

~ $2.0

$1.0

$0.0


Indigent Care Sales Surtax Classification: Other Taxes

lA 1/2-cent surtax was effective December I, !991.

A 1/4-Cent surtax lasted 2 years

c and expired

<--March 31, 1987. c:

-A1

.c; F

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj. proj.

!c::<-

Fiscal Year

Voted {9th Cent) Gasoline Tax Classification: Other Taxes

. c: F F _r-;.=c.c:"-,c:;f=r,c:;R

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj. proj.

Fiscal Year

28

"' c 0 ·---~

$20.0

$17.5

$15.0

$12.5

$10.0

$7.5

$5.0

$2.5

$0.0


Local Option (6-Cents) Gasoline Tax Classification: Other Taxes

The tax changed from 4 cents to

6 cents in FY 86. = ----~ _,.....,F f- "--- f-

F

//F

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj. proj.

Fiscal Year

Local Option Tourist Development Tax Classification: Other Taxes

$7.5

The tax rate changed from § $5.0 2% to 3% on October 12. 1986. := ~~~=-;~l!fl~l ~ $2.5

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj.proj.

Fiscal Year

I D BaseLevy Ill Sports Facil. Debt I

29

$5.0

$4.0

"' $3.0 c .s --~ $2.0

$1.0

$0.0


c

EMS Ambulance Service Fees Classification: Charges for Services

~~fees were increased 109% inFY 89, and 5% inFY 91.

IBLS service was phased! ~ loutinFY87. I HF cP

~ \ ~

~~ == F ~

____, H

= ~

~ ~ M ~ ~ ~ a 6 ~ 91 n ~ M ~ proj. proj.

Fiscal Year Note: BLS is Basic Lift Support. ALS is Advanced Life Supporl (Paramedic)

$40.0

"' $30.0 c 0 --~ $20.0

$10.0

$0.0

Local Government 1/2-Cent Sales Tax Classification: Intergovernmental Revenues

An extension of the tax to services in late FY 87 was later replaced by a 22% increase in the

local share of the tax on goods.

\.~c f= = c

F =H

= -

,-;--

r'-<--

~ ~ M ~ ~ ~ a 6 ~ 91 n ~ M ~ proj. proj.

Fiscal Year

30

$25.0

$20.0

"' $15.0 = 0 ::: -·-~ $10.0

$5.0

$4.0

$3.0

"' = 0 ·- $2.0 --~ $1.0

$0.0


State Revenue Sharing Classification: Intergovernmental Revenues

The dropoff in revenue\ occurred statewide. 1

I //

= = F k::::;

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj. proj.

Fiscal Year

Basis: fnJangibles Tax afld Cigarette Tax

County (7th Cent) Gasoline Tax Classification: Intergovernmental Revenues

k::::; F ~,:::::;F c:::;; f-F c::.= =r: .__

~

r:-

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj. proj.

Fiscal Year

Note: Unlike other gas taus, reve~ distribution is only partly ba:ed on focal sales.

31

$9.0 $8.0 $7.0

"' $6.0

= $5.0 0 ·~ = $4.0 ·~ ~ $3.0

$2.0 $1.0 $0.0

$5.0

$4.0

"' $3.0 = .2 --·~ $2.0 ~

$1.0

$0.0


Federal Revenue Sharing Classification: Intergovernmental Revenues

p / The last quarterly entitlement

J;= -;c. L ~ was paid in FY 86.

;,:::

"-

rA:final distribution was I madeinFY 87. I

7 .. 82 83 84 85 86 87 88 89 90 91 92 93 94 95

proj. proj.

Fiscal Year

Building Department Fees Classification: Licenses and Permits

All fees were increased! slight! y in FY 91.

[Residental Fees were increased["" inFY89. -C

~ ,... f--

~ ~

f-- f-- rC ;z: £::. ~

lc-:

,c::

82 83 84 85 86 87 88 89 90 91 92 93 94 95 proj. proj.

Fiscal Year

32

GLOSSARY OF KEY TERMS

AD VALOREM TAX A tax levied in proportion (usually millage rates) to the assessed value of the property against which it is levied.

ADOPTED BUDGET The financial plan for the fiscal year beginning October 1. Required by law to be approved by the Board of County Commissioners at the second of two public hearings.

AMENDED OR REVISED BUDGET The current year adopted budget adjusted to reflect all budget amendments approved by the Board of County Commissioners through the date indicated.

APPROPRIATION The legal authorization of funds granted by a legislative body such as Hillsborough County's Board of County Conuuissioners to make expenditores and to incur obligations for specific purposes. An appropriation is usually limited in amount and to a time period within which it may be expended. It is the act of appropriation that funds a budget.

ASSESSED VALUE A valuation set upon real estate or other personal property by a government as a basis for levying taxes. The assessed value in Hillsborough County is set by the Property Appraiser.

BEGINNING FUND BALANCE The Ending Fund Balance of the previous period. (See Ending Fund Balance definition.)

BOND · Written evidence of the issuer's obligation to repay a specified

principal amount on a certain date (maturity date), together with interest at a stated rate, or according to a formula for determining that rate.

CAPITAL BUDGET The fmancial plan of capital project expenditures for the fiscal year begimting October I. It incorporates anticipated revenues and appropriations included in the frrst year of the six year Capital Improvements Program (CIP), and any anticipated unspent budget appropriation balances from the previous fiscal year. The Capital Budget is adopted by the BOCC as a part of the annual County Budget.

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CAPITAL OUTLAY OR CAPITAL EQUIPMENT Items such as office furniture, fleet equipment, data processing equipment and other operating equipment with a unit cost of $200 or more.

CAPITAL PROJECT Any improvement or acquisition of major capital; facilities, roads, bridges, buildings, or land with a useful life of at least five years.

CONTINUATION BUDGET The current budget including all BOCC authorized and funded positions as of February 28, 1994 adjusted for FY 95 costs. Continuation level budgets price today's resources in terms of FY 95 costs. Continuation level budgets do not necessarily keep pace with growth in service demand.

DEBT SERVICE The dollars required to repay funds borrowed by means of an issuance of bonds or a bank loan. The components of the debt service payment typically include an amount to retire a portion of the principal amount borrowed (i.e., amortization), as well as interest on the remaining outstanding unpaid principal balance.

DECISION UNIT Groups of inputs which make a measurable contribution to the achievement of an established department purpose--a purpose which is often dictated by law and/or defmed by objectives and measured by service levels or units of output. Decision units are segregated by funding source. Decision units build departmental budgets. They are rank ordered in a hierarchical format.

DEMAND A type of measurement category. Demand represents the external factors that demonstrate the needs for the service(s) or program(s), i.e., population, service area, complaints, and waiting lists.

DEPARTMENT For budgeting purposes, any distinct government orgartizational entity receiving direct funding approved by the Board of County Commissioners.


EFFECTIVENESS A type of measure category sometimes referred to as quality indicators. Effectiveness measures examine the degree to which services are responsive to the needs and desires of the customers (including both external and internal). These measures tell how well the job is being performed, how well the intent is being fulfilled. Effectiveness encompasses both quality and quantity. Demand and the response to demand are often linked in these measures. These are the most difficult measures to collect and use, because the organization must develop a method of retrieving the information from outside those served.

EFFICIENCY A type of measurement category sometimes called productivity. 1bis is often measured in terms of unit costs over time. Sometimes timeliness of responses or reduction in previous delays are used to indicate efficiency. Efficiency refers to the ratio of the quantity of service (tons, gallons, hospital care days, etc.) to the cost in dollars or labor, required to produce the service. An efficiency measure can be either an output or input ratio (e.g., the number of trees trimmed per crew per day) or an input/output ratio (e.g., the dollar cost per permit application processed).

ENDING FUND BALANCE Funds catried over at the end of the fiscal year. Within a fund, the revenue on hand at the beginning of the fiscal year, plus revenues received during the year, less expenses equals ending fund balance.

ENTERPRISE FUND A fund used to account for operations that are financed and operated in a manner similar to private business enterprises, wherein the stated intent is that the costs (including depreciation) of providing goods and services be financed from revenues recovered primarily through user fees.

FISCAL YEAR 1995 (FY 95) The 12-month fiscal period beginning October 1, 1994 and ending September 30, 1995. It can also be referred to or shownasFY 95.

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FULL-TIME EQUIVALENT One position funded for a full year. For example, a permanent employee funded and paid for 40 hours/week and 52 weeks/year or 2 employees funded and paid for 20 hours/week and 52 weeks/year would be equal to one fulltime equivalent.

FUND An accounting entity used to record cash and other financial resources as well as an offsetting amount of liabilities and other uses. The resources and uses are segregated from other resources and uses for the purpose of carrying on specific activities or attaitting specific objectives in accordance with special regulations, restrictions, or limitations.

FUNDED POSITIONS The number of authorized positions for which funding is included in the budget for a given fiscal year.

FUNDING SOURCES The type or origination of funds to finance ongoing or onetime expenditures. Examples are ad valorem taxes, user fees, licenses, permits, and grants.

GENERAL REVENUE FUND (GENERAL FUND) 1his fund accounts for all financial transactions except those required to be accounted for in other funds. The fund's resources, ad valorem taxes, and other revenues provide services or benefits to all residents of Hillsborough County.

IMPACT FEES A type of charge for services which is assessed to new construction in order to support specific new demands on a given service, e.g., transportation, schools, parks and frre protection.

INFRASTRUCTURE Infrastructure is a permanent installation such as a building, road, or water transmission system that provides public services.


LIDRARY TAXING DISTRICT A special taxing district that comprises the City of Tampa and the unincorporated areas of the County. It provides library services for County residents. These services are fmanced primarily by an ad valorem tax levied on all taxable property located in the district and accounted for in the Special Library Tax District Fund.

MANDATE A requirement imposed by a legal act of the federal, state, or local government.

MEASURE There are four different types of measure: a count, a ratio, a percentage, and a dollar amount. Before developing any measure, identify something that can be counted. In order to identify what to count, the event being assessed must be determined, i.e., days spent in the hospital, certificates of occupancy issued, gallons of water treated, etc.

MILL A mill is .001 of one dollar.

MILLAGE RATE A -.rate per one thousand dollars of taxable property value which, when multiplied by the taxable value, yields the tax billing for a given parcel.

MINIMUM SERVICE LEVEL (MSL) Minimum service level defines the base outputs which are either legally mandated and/or considered to be the most important set of outputs of an organization. The minimum service level corresponds directly to the purpose or mission of the organization. MSL is the effort, expressed in terms of service and cost, below which it is not realistic or feasible to operate.

MISCELLANEOUS (FUNDING SOURCE) Revenue other than those received from standard sources such as taxes, licenses and pennits, grants and user fees.

MISSION STATEMENT A broad statement of purpose which is derived from organizations and/or community values and goals.

35

MUNICIPAL SERVICES TAXING UNIT (MSTU) The taxing district which is comprised of all of the unincorporated area of the County. It provides services typically provided by a municipality (e.g., Sheriffs patrol, paramedic services, fire protection, parks and recreation, code enforcement and road network maintenance) to the residents and businesses in the unincorporated area. The services are frnanced primarily by an ad valorem tax levied on all taxable property located in the unincorporated area.

OBJECTIVE Statements that specify achievements to be attained within a prescribed time frame. These are exchanged/superseded by other objectives at the expiration of the time frame. Objectives are directly connected to how the resourees of an organization will be used. Statements begin with an action verb and include the quantified statement of the results expected as an outcome of the action, such as PROVIDE (the action verb) WITH EXISTING MANPOWER, 24-HOUR SECURITY COVERAGE FOR FIVE SOUTH COUNTY GOVERNMENT BUIWINGS AT DAILY COST NOT TO EXCEED $15.60 (quantified results) DURING FY 95 (explicit time frame).

OPERATING BUDGET The operating budget includes appropriations for recurring and certain one-time expenditures that will be consumed in a fixed period of time to provide for day-to-day operations (e.g., salaries and related benefits, operating supplies, contractual and maintenance services, professional services, and software).

PROJECTED EXPENSE The estimated expense through the end of the current fiscal year for the respective budget line item.

REPLACEMENT EQUIPMENT Equipment requested by a department for replacing like or similar equipment to be retired because of unserviceability.

RESERVES AND REFUNDS Included in this category are funds required to meet both anticipated and unanticipated needs; the balance of anticipated earmarked revenues not required for operation in


the budget year; estimated reimbursements to organizations, state, or federal governments for revenues received and not spent, and those required to be set aside by bond covenants.

RESTRICTED REVENUES Funds collected for limited or specific expenditure purposes. These funds are earmarked for specific purposes by requirements within the resource origin, such as: regulations found in bond covenants; grant contracts; local ordinances; donations for a specific purpose; state statute; and federal law or administrative guidelines.

ROLLED-BACK RATE The "rolled-back rate" is that millage rate which, when applied to the total amount of taxable value of property (excluding new construction), produces the same amount of tax dollars as the previous year.

SINKING FUND An account, sometimes called a debt service fund, into which the issuer makes periodic deposits to assure the timely availability of sufficient monies for the payment of debt service requirements. The revenues to be deposited into the sinking fund and payments therefrom are determined by the terms of the bond contract.

TARGET BUDGET The target budget benchmark is the adopted FY 94 department budget for combined Characters 10 (Personal Services) and 30 (Operating) at the subfund level. Adopted FY 94 Character 80 (Grants in Aid) appropriations are considered a second target amount Target budgets for grant funded organizations are divided between the required and supplemental County match funding.

TAXABLE VALUE The assessed value of property minus any authorized exemptions (i.e. agricultural, homestead exemption). This value is used to determine the amount of property (ad valorem) tax to be levied.

36

TRANSFERS Because of legal or other restrictions, monies collected in one fund may need to be expended in other funds. Transferal is accomplished through Transfers-In (a source of funds) for the recipient fund and an equal Transfer-Out (a use of funds) for the donor fund. When this movement occurs between different funds, it is known as an Interfund Transfer. When it occurs between the restricted and unrestricted portions of the same fund, it is known as an Intrafund Transfer.

UNRESTRICTED REVENUES Funds that have broad, or no limitations as to expenditure purposes. Such funds can be used for any lawful expenditures that support a wide variety of functions, or objectives, which require expenditures in order to accomplish results.

USER FEES Charges for a specific governmental service which cover the cost of providing that service to the user (e.g., building permits, animal licenses, park fees).

WORKLOAD A type of measure category. Workload data provide a comparison of how output corresponds to the demand, i.e., people served, transactions processed in certain geographic locations, complaints addressed.

ZERO-BASE BUDGETING (ZBB) A method of detailed budget analysis and justification that combines elements of management by objectives and program evaluation. It is a vehicle to link management and planning to the budget process. ZBB starts with an examination of an agency's basic programs and services by the lowest management level, and continues up the organization as funding packages are prioritized at each level in accordance with available resources and desired outcomes. ZBB is a tool for objectively directing the allocation of funds among activities and programs. Its basis is the consideration of the efficiency and effectiveness of activities and programs.

county administrator's recommended budget …...refresher training for departments in using the...

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