Agenda - 09-04-2014 - 6a - Laserfiche WebLink

Browse Search

11 1 Chair Jacobs asked if this is apart from what has been appropriated or if it is reflected in 2 what has been appropriated. 3 Clarence Grier said this is reflected in the $8.5 million that has been appropriated. 4 Chair Jacobs asked if it would really be 17 percent if you look at the $8.5 million, or if it 5 would still be 20 percent. 6 Clarence Grier said that would be about 18.15 percent. He said the only reason this is 7 not changed is because there is the ability to change the appropriation of the $8.5 million. He 8 said to be consistent the amount is said to be $36.7 million. 9 Chair Jacobs asked if this $36.7 million reflects the $650,000 that could be spent. 10 Clarence Grier said no; that would be over and above. 11 Michael Talbert said each year the County creates a certain amount of fund balance, 12 and staff thinks this $8.9 million is in the range of what will be created this year. 13 Chair Jacobs asked if the revaluation in 2017 is reflected in the 2018-2018 budget. 14 Michael Talbert said yes. 15 Chair Jacobs asked what the tax increase would be on a $100 million bond issue. 16 Clarence Grier said this would be 3.78 cents. 17 Chair Jacobs said, based on the scenarios presented, this could be 7 or 8 cents, which 18 would exceed the proposed limit on property tax increases being discussed by the state 19 legislature. 20 Clarence Grier said this is correct. 21 Chair Jacobs said moving forward with bonds, there may be a need to project about 22 what happens if the revaluation does not bring things back up. He said defensive measures 23 may be needed. 24 Clarence Grier said the first defensive measure was getting the AAA rating with all of the 25 bond rating agencies, and the second would be making sure to close the gap on general fund 26 revenues versus fund balance. He said it is important to make sure nothing is done to 27 adversely affect fund balance. He said the County is in very good financial shape. He said 28 there should be fund balance generated this year and next fiscal year, but it will not be at the 29 same levels, due to the appropriations that have been done stave off a property tax increase. 30 Chair Jacobs asked how fund balance is generated. 31 Clarence Grier said some people say he is very conservative with budgeting. He said 32 there has been a lot of under-spending in the departments. He said there has also been 1.5 33 percent growth, and there have been improvements in sales tax generation as the economy 34 has improved. He said it is a composite of things, but the main thing is the departments holding 35 the line on budgets and adhering to the policies and procedures put in place. 36 Michael Talbert said an oversimplification would be to say that the fund balance is 37 money appropriated but not spent, and money over collected from conservative revenue 38 estimates. He said there will be a significant build in fund balance from the vehicle property tax. 39 Clarence Grier said the collection rate on registered vehicles has always been low, and 40 with the new method of paying taxes along with your registration, revenues are expected to go 41 up. 42 Commissioner Price referred to the cash flow page and asked for an explanation of the 43 overage in the second quarter. 44 Clarence Grier said property taxes are generally collected in the months of October, 45 November, December, and January. He said there is no positive cash flow until property taxes 46 are received. He said this is why fund balance is critical, as the County relies on this during the 47 periods when expenditures exceed revenues. 48 49 5. Public Hearings 50