General GovernmentBudget Overview

Budget Process

Year 1 Prepare complete budget document for years one

and two Adopt budget for year one and set millage rate Approve year two plan

Year 2 Adjustments to the plan Set tentative millage rate Adopt year two budget

General Fund

Accounts for those resources and their uses traditionally associated with government

Funded by general revenues including property taxes, licenses and permits, fines, utility taxes, GRU transfers, sales tax and state revenue sharing

Includes expenditures for all departments providing government services

Expenditures are not specifically tied to revenue sources

General Fund Revenues

Four revenue sources make up over 75% of General Fund revenue General Fund transfer Property tax Utility Tax Intergovernmental revenue

Growth rate of these revenues over past years declining or flat

Starting to see uptick in total revenue

• 4

Utility Transfer32%

Property Taxes23%

Utility Taxes9%

Intergovernmental12%

Fire Assessment5%

Charges for Services9%

Other4%

Other Taxes6%

FY16 Budget $108.6 million

General Fund Revenue

Utility Transfer

Proxy for what GRU would pay if they were private utility

Property tax Franchise fee Return on investment to stockholders

Single largest General Fund revenue source, approximately 1/3 of total budget

FY15 New Transfer Formula Base equals FY14 GFT level as determined by prior GFT formula Growth @ 1.5% per year GFT reduced by biomass plant property tax revenue received A decrease of more than $3 million

Property Tax

Second largest General Fund revenue source at 23% of budget

Gainesville faces unique challenges to ad valorem revenue generation

High percentage of government and public education owned property creates tax base with the lowest percentage of taxable property in state

Property Taxes

Millage Rate Tax rate set by the taxing authority each year Rate per $1,000 value FY16 rate is 4.5079

Property Taxes

Taxable Value Determined by the Property Appraiser Various exemptions

Up to $50,000 - Homestead Exemption $25,000 – Senior Low Income Homestead Exemption $500 - Widows/Widowers, Disability and Blind Persons $5,000 - Veteran Disability

Portability Ability of homeowners to transfer their Save

Our Homes benefit up to $500,000 to a new homestead

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY163.00

3.20

3.40

3.60

3.80

4.00

4.20

4.40

4.60

4.80

5.00

5.20

5.40

5.60

5.80

6.00

3.56

3.81

4.34

4.97

5.63 5.67

5.89

5.61

5.41

5.17 5.18

5.655.79

Trend in Taxable Property Value (in billions)

Taxable Property Value

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20163.80

4.00

4.20

4.40

4.60

4.80

5.00 4.9416 4.9416 4.9416

4.8509

4.2544 4.2544

4.3963

4.2544 4.2544

4.4946

4.5784.5079 4.5079

Trend in Millage Rates

Millage Rates

Taxable Property

Miami BeachClearwater

MiramarFt Lauderdale

West Palm BeachCoral Springs

Cape CoralPort St lucieHollywood

LakelandPembroke Pines

TallahasseeGainesville

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

78.6678.12

76.8674.6874.35

72.6371.50

70.2969.83

68.5066.39

54.4540.27

Peer City % of Taxable Property

Utility Tax

Revenues are generated through taxes levied on electric, water, and natural gas utility customers who reside within City’s corporate limits

Traditionally a function of three variables: number of customers, consumption per customer, and price

• 13

Utility Tax

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Budget

0

2

4

6

8

10

12

7.83

9.24 9.42

10.7411.16

10.77 10.7810.41

10.02 10.26

Utility Tax Revenue Budget (millions)

Intergovernmental Revenues

Account for 12% or $12.6M of revenue budget Half Cent Sales Tax and State Revenue Sharing is $10.2M

Dramatically effected by recession FY09-FY13 are approximately $6.10M or 12.4% less than

FY04-FY08 FY18 is when we return to same level as our peak in FY06

Recovery is beginning and projections include about 3% growth each year based on a combination of population growth and CPI growth

Fire Assessment

Implemented in FY11 and must be approved every year through separate resolution

$78 per factored fire protection unit $5.4 million in revenue each year Starting in FY16, the City will pay the fire

assessment on behalf of religious and charitable organizations ~ $120,000

General Fund Expenditures

General Fund Expenditures

General Government service delivery intensive organization

Almost 60% of expenditures are personal services

More than 50% of expenditure budget goes to Public Safety

General Fund Expenditure Budget

15.15%

51.44%

0.17%

11.00%

0.43%

0.13%

6.79%

14.88%

FY2016 General FundUses by Function

General Government

Public Safety

Physical Environment

Transportation

Economic Environment

Human Services

Cultural & Recreation

Transfers/Cont.

General Fund Expenditures

From FY08-FY12, cuts to General Fund budget totaled $15M

$9.5M in departmental cuts $5.6M in city-wide cuts and organizational efficiencies 81 Full Time Equivalent position reductions

FY13-14 Relatively stable Implemented Pension reform

FY15 - another $2.2M in expenditure reductions 13 Full Time equivalent position reductions No raises budgeted for employees

General Fund Expenditures

FY16 Added some new programs and pilot programs into

budget including: New service level for RTS operations Development Services Center project Bike Share Program Sweetwater Wetlands Park

Questions