1 FCEP Level I – Budget Development for Elections Office 4 Hour CourseFlorida Institute of Government at Florida State University FSASE Certification Project FCEP Level I – Budget Development for Elections Office 4 Hour Course Randy Singh Assistant County Administrator, Orange County Bill Cowles Supervisor of Elections, Orange County May 2017
2 Presentation Outline County Facts Budget Development ProcessCounty Budget Overview Financial Planning TRIM Notice Summary
3 Presentation Outline County Facts Budget Development ProcessCounty Budget Overview Summary
4 County Facts 5th Largest County in Florida Population ~ 1.3 Million89% Under 65 Years Old 66 Million Visitors in 2015 $109 Billion Taxable Value Disney – Largest Taxpayer Value of $8.6 Billion Employs 74,000 Locally Disney is far and away the largest taxpayer. Their taxable property is more than 7% of the entire county. The top ten is usually: Disney Universal Marriott Hilton Orange Lake Country Club Duke Energy Hyatt Wyndham Westgate Vistana Rosen is #11, Lockheed Martin is #12, and Sea World is #14 The largest restaurant in Orlando is Disney’s “Be our Guest”. With 550 seats, it is also one of the ten biggest restaurants in the entire U.S. (Can’t confirm this is still the case) The property appraiser also lists the top 10 residential properties in Orange County. (Most recent report on PA Site was 2014) The biggest is Jeffrey Gelman, at 46 thousand square feet. Shaq’s house is only 35 thousand.
5 County Facts How Large is the County’s Budget ? Does anybody know?
6 County Facts Overall budget is $3.7 billion - Greater than Bahamas, Bermuda, Greenland, Fiji, and many more.
7 County Facts What is the County’s largest revenue source? What is the State’s largest revenue source?
8 County Facts How much do you pay in gas tax per gallon of fuel?
9 County Facts How much do you pay in gas tax per gallon of fuel? Gas 49 cents Diesel 56 cents Federal State Local 6 7
10 County Facts Population Unincorporated 813,421 64% Orlando 271,752 21% Others 195,214 15% As of April 1, 2016 (BEBR) 3rd place is Apopka – 47,826 TOTAL As of April 1, 2016 is 1,280,387 The thing to remember here is that we have a huge tourist population that does not show up in these official figures. Tourists need roads, police protection, fire protection, and occasionally the county jail. If you look at our cost per citizen, it is sometimes pretty high, because our actual “service population” is higher than our population.
11 13 Cities in Orange CountyCounty Facts 13 Cities in Orange County 13 Bay Lake and Lake Buena Vista are both cities, even though they are controlled by Disney corporations, Windermere is technically a “town” because they used the word “town” in their name. No one actually lives in the Magic Kingdom, but there are some housing units near the Boardwalk Resort that fall into Bay Lake. It is important to note that each city has its own idea of what is the appropriate level of service. Police protection, Fire protection and roads are basically municipal services. The cities provide those for their residents, and the county provides it in the big white area. Cities Apopka Bay Lake Belle Isle Edgewood Lake Buena Vista Maitland Ocoee Orlando Winter Garden Winter Park Towns Eatonville Oakland Windermere
12 Presentation Outline County Facts Budget Development ProcessCounty Budget Overview Summary
13 Budget Development Role of : Mayor Commissioners Staff CitizensOrange county is a charter county, meaning that we wrote our own description of each officer’s powers and responsibilities. In most counties, the Clerk of Court is the county financial officer. In Orange County, it is the Comptroller.
14 Budget Development Role of Mayor: Prepare and submit a balancedbudget to the BCC We wrote ours with a “strong Mayor” form of government, although back then it was called “Chairman”. That means the County Mayor runs the day-to-day operations, and also prepares the budget.
15 Budget Development Role of Commissioners: Discuss and approve the annual budget The Commissioners can add or subtract anything they want to the budget, but it requires a vote. They can’t just show up with their own budget.
16 Budget Development Role of Staff: Prepare a detailed budget based on the Mayor’s guidelines and priorities
17 Budget Development Role of Citizens:Communicate with District Commissioners Communicate with county staff Participate on Advisory Boards Citizens don’t get to submit their own budget either.
18 Office of Management & Budget12/18/2017 Office of Management & Budget OMB’s Principal Duties County Annual Budget Budget Amendments Revenue Forecasting Long-term Financial Planning Operating Process CIP Process Grants Process
19 Office of Management & BudgetOMB’s Principal Duties Budget Monitoring Financial Reports Fee Studies Audits
20 Presentation Outline County Facts Budget Development ProcessCounty Budget Overview Financial Planning TRIM Notice Summary
21 Simple Budget ExerciseClass Exercise Simple Budget Exercise Does anybody know?
22 Budget Overview So what is a Budget?This is the part where I look at your faces to see if you are still interested.
23 Budget Overview The Budget is a financial PlanThe budget serves as the primary tool for allocating financial resources to programs and services. Policy making tool, Management tool, Financial tool, Communication tool Local and State Must be balanced Federal is not This is the part where I look at your faces to see if you are still interested.
24 What is Financial Planning?12/18/2017 What is Financial Planning? A strategic approach to understand and address your financial situation both short and long-term
25 What is Financial Planning?12/18/2017 What is Financial Planning? Short-Term = 1 year - Annual Budget Long-Term usually 5 years
26 Why Plan? It’s your financial GPS12/18/2017 Why Plan? It’s your financial GPS To know what you can afford now and later (financial sustainability) To establish budget guidelines
27 12/18/2017 What it is not It is not Accounting
28 Accounting vs. Financial Planning12/18/2017 Accounting vs. Financial Planning Accounting: After the fact recording and reporting of financial events Assets – Liabilities = Owners Equity A strict science based on established guidelines and principles
29 Accounting vs. Financial Planning12/18/2017 Accounting vs. Financial Planning Financial Planning: Forward looking – before the financial event Part science and part Art (Art – based on prudent financial principles and judgment)
30 Accounting vs. Financial Planning12/18/2017 Financial Planning: Revenues – Expenditures = Surplus / Deficit Revenues – Expenditures + - P = Trouble or Not Assets – Liabilities = Owners Equity
31 Accounting vs. Financial Planning12/18/2017 Accounting vs. Financial Planning Financial Planning: Rev – Exp +- P = Trouble or Not Where P = Politics
32 Accounting vs. Financial Planning12/18/2017 Politics: Increase Taxes Increase Fees Cut or Add Programs Public Safety Unions Term Limits Elections Legislators Lobbyists
33 12/18/2017 What does it do? Plan for stable service delivery during economic fluctuations Examine long-term impact of current proposals Identify and react to trends before it becomes a crisis Calculate a measured response to economic and other changes
34 How to Plan? Understand your environment:12/18/2017 How to Plan? Understand your environment: Social (education, crime rates, unemployment, etc.) Political/legislative (local, state & feds) Geographical (location) Seasonal (PST) Infrastructure (condition) Economic and Financial (global & local, CPI, etc.)
35 Forecasting Economic Indicators Historical Trends Most Recent 3 YearsIndustry Patterns Legislation Global & Local Economy
36 Presentation Outline County Facts Budget Development ProcessBudget Overview Summary
37 Economic Environment Uncertain times Slow economic growth Unemployment12/18/2017 Economic Environment Uncertain times Slow economic growth Unemployment Legislative impacts Tax revenue erosion The Florida Unemployment rate is up slightly right now, it is about 5.0% (February 2017). Orange County is 4.7%. (As of January 2017) The legislature is fond of handing out tax cuts, and they usually like to force counties to do it, because they all believe they could run counties better than counties can.
38 Budget Process 1Economic Indicators 11 Budget Amendment2Priorities/Guidelines 10 Budget Document 3 Department Requests 9 Adopted Budget 4 County Mayor, County Administrator & Staff Meetings This is an over-simplification. For example, you don’t see anything there about monitoring the existing budget, reporting the results to management and to taxpayers, or even adjusting the budget for changes during the year. 8 Public Hearings 5 Proposed Budget Developed 7 BCC Changes & TRIM Notice 6 BCC Worksessions
39 Where does our money comes from?12/18/2017 Budget Overview Where does our money comes from?
40 Orange County Revenues12/18/2017 Orange County Revenues $3.7 Billion The countywide revenues are just over $3.7 billion. If you count the Constitutional Officers, (which we do), then we have 10,154 employees This seems like a lot, (and it is), but you don’t have to look very far into the details to see how much of this money is spoken for. For example, We count “inter-fund transfers” in the total, even though that is just a movement of money between funds, and we count “service charges”, even though our service charges only cover the cost of the service. The largest single item is the grey one above, fund balance, which is not really a revenue at all, but (at best) a rainy day fund. Fund balance this year was more than $1.1 billion, or about 31% of the total.
41 12/18/2017 Budget Overview Where does our money go?
42 Adopted FY Budget Public Safety - $515 Million (Only Operating, No Reserves or CIP included), (Property Tax Funded – No Special Revenue) Sheriff Fire Rescue and Emergency Management Corrections Non-Public Safety - $455 Million (Only Operating, No Reserves or CIP included), (Property Tax Funded – No Special Revenue) Administrative Services Family Services Health Services Parks & Recreation CEDS Office of Accountability Other Budgets (County Attorney, County Admin., Communications, Agenda, Economic Trade, Public Affairs) Constitutional Offices LYNX Other (Non-departmental, CRAs, Interfund Transfers, ECFRPC, Metroplan, other small items)
43 Adopted FY Budget Public Safety Sheriff Corrections Fire
44 Adopted FY 2016-17 Budget Non-Public Safety BCC DepartmentsConstitutional Officers Outside Agencies Other
45 County Staffing Levels15% Population Growth County Staff (Includes Constitutional Offices) has still not yet regained the staffing level back in 2008 even though there was population growth during that time period of 15% (2008 Population 1,114,979 and 2017 Population 1,280,387) Orange County population is 2nd in population growth in the State.
46 Presentation Outline County Facts Budget Development ProcessCounty Budget Overview TRIM Notice Summary
47 Class Exercise Understanding Your Trim Notice Does anybody know?
48 Property Tax Terms Market Value Just Value Assessed Value Save our Homes (JV –AV) Exemptions Taxable Value MSTU TRIM Does anybody know?
49 Unincorporated TRIM Notice
50 Incorporated TRIM Notice
51 Property Tax Formula Assessed Value less Exemptions divided by 1000 then multiplied by the Millage Rate Does anybody know?
52 Summary Uncertain times Legislative impacts12/18/2017 Summary Uncertain times Legislative impacts Slow economic growth issues Ongoing tax revenue monitoring Always know your financial situation
53 FCEP Level I – Budget Development for Elections Office 4 Hour CourseFlorida Institute of Government at Florida State University FSASE Certification Project FCEP Level I – Budget Development for Elections Office 4 Hour Course Randy Singh Assistant County Administrator, Orange County Bill Cowles Supervisor of Elections, Orange County May 2017