Post on 17-Jan-2016
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Kitsap County
Who We AreWhere We Are…
Where We’re Going… How We’ll Get There
Who We Are … Our Mission
Kitsap County Government exists to protect and promote the safety, health and welfare of our citizens in an efficient, accessible and effective manner.
Our Vision
A unique and growing community, widely known for: Safe and Healthy Communities Protected Natural Resources and Systems Thriving Local Economy Inclusive Government Effective and Efficient County Services
Regional Functions Required By Law
Jail (pretrial felony detention)
District Court (small claims) Public Defender (felonies) Roads and Infrastructure Substance Abuse services Prosecutor (felonies) Land use planning Disability services County Commissioners Sheriff
Superior Court Juvenile Justice Public Health Elections Licensing Treasurer Coroner Records Auditor Clerk (Superior Court
Local Services Required By Law
Prosecuting/Public Defense (misdemeanors) District Court (misdemeanors) Jail (misdemeanors) Permitting Sheriff
Discretionary (Elective) Spending
Economic Development (Regional) Animal Control (Regional) Parks (Regional and Local)
Frequently Asked Questions (FAQ) Interlaced in this presentation will be some
frequently asked questions (FAQ). These questions deal with: Accounting structures and restrictions on
revenues and expenditures Where the challenges are right now Unrestricted taxes and assessed values
FAQ # 1
Q. Why is it so hard to cut a few million dollars when your budget is over $326 million? Surely it can’t be that hard to make a 1% cut?
A. The answer lies in how our budget is formed. We have over 100 funds and most of the spending authority assigned to these funds is restricted. Consider each fund as a checkbook where checks cannot be written from one fund to another
A Little About County Fund Structure
2007 Preliminary NumberFund Type Budget of Funds Examples
Special Revenue Funds 129,120,389$ 55 Roads, HealthDebt Service Funds 11,118,241 13 Re-Pay DebtCapital Project Funds 17,275,000 7 BuildingsEnterprise Funds 54,650,653 23 Bus. - SewerInternal Service Funds 22,077,602 3 Dept to DeptGeneral Fund 92,255,595 1 General Ops
326,497,480$ 102
FAQ # 2
Q. How can you build a new building, buy park or open space property at the same time you’re have a budget crisis?
A. This relates to FAQ #1 and is a “color of money issue.” Special Revenue funds are so designated because the revenues received into them can only be spent on specific things.
A. Conservation Futures Fund (a $0.04/$1,000 property tax) can only buy open space and park property
B. Real Estate Excise Tax (a 1.78% excise tax on property sales) can only be spent on capital projects
FAQ # 3
Q. So where is the budget problem and why is it happening?
A. Our current challenge lies in the county’s General Fund and we will have similar challenges in the Road fund in the near future. It’s happening primarily for two reasons; one is that certain revenue streams are limited in growth, and the other is that most of our expenditures are not restricted in their growth.
What is the General Fund?
Finances ordinary operations of the county Law & Justice General Government Community Services Health & Human Services
Main Revenue Sources Taxes Licenses & Permits Intergovernmental Charges for Services Fines and Forfeits
Why we focus on the General Fund This is the fund that supports…
All elected functions. All government functions that need subsidies from
tax revenues except roads. All functions, outside of Public Works, that the
public thinks about when thinking of county services.
Single largest fund
The Challenge
Revenues are increasing at an annual rate of about 4.0%
Expenditures are increasing at an annual rate of about 6.0%
Given the above; we must Become more efficient Reduce expenditures Increase revenues
Revenue and expense trends and comparison
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
$110.0
$120.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Mill
ion
s
Difference Between Revenues and Expenditures
-$14.0
-$12.0
-$10.0
-$8.0
-$6.0
-$4.0
-$2.0
$0.0
$2.0
$4.0
$6.0
$8.0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Millio
ns
How we get our funding
General Property Taxes Sales and Use Taxes Other Taxes Intergovernmental Revenues Charges for Services Fines and Forfeits Miscellaneous Other Sources
How We Get It
Other Taxes6.6%
Sales Taxes27.4%
Property Taxes29.4%
All Other Revenues
36.6%
Property Tax to Sales Tax Ratio
• Kitsap County is 1.1 : 1
• King County is 4.5 : 1
• Snohomish County is 2.4 : 1
• Pierce County is 2.6 : 1
• Clark County is 1.9 : 1
• Thruston is 2.6 : 1
• State Average is 2.8 : 1
• Kitsap County is highly dependent on Sales Tax and we have a weak property tax base because we have no taxed industrialized tax base . . . Our industrial tax base is exempt from taxes.
Other Taxes6.6%
Sales Taxes27.4%
Property Taxes29.4%
All Other Revenues
36.6%
Is this a Problem?
FAQ # 4 & 5
Q5 I send all my property taxes to the county, does the county get it all?
A. No, these taxes are distributed between many different taxing districts including schools, fire and EMS, libraries, the state, and others
Q4 The Assessor just sent me my new assessed value, why does the county keep increasing my property taxes?
A. This is a recurring theme of letters to the editor but is it true? Just because the assessed value increased does not mean that taxes on existing property will increase.
Property Tax facts
Our single largest source of revenue The tax base can increase by no more than 1.0%
without voter approval (but how does that work?) Depending on where you live,
The County General Fund receives about 9% of your total property tax bill
More than 50% of your property taxes are dedicated to education
The state receives more than 20% of your property taxes (not true in most states)
Distribution of each Property Tax Dollar (Unincorporated Kitsap County)
10.3¢ County General
13.3¢ County Roads
24.6¢ State General (Education)
29.7¢ Local Schools
16.3¢ Fire/EMS
5.8¢ All Others*
*All Others Includes:
Port Districts
Library Districts
Parks Districts
PUD/Water/Sewer Districts
Distribution of each Property Tax Dollar (Cities)
9.9¢ County General
19.6¢ City
23.6¢ State General (Education)
28.4¢ Local Schools
9.1¢ Fire/EMS
9.4¢ All Others*
*All Others Includes:
Port Districts
Library Districts
Parks Districts
PUD/Water/Sewer Districts
Voter Approved Initiatives
Initiative 747 and Referendum 47 Property tax initiatives overwhelmingly passed
by the electorate Initiative 695 and Referendum 49
Motor vehicle excise tax overwhelmingly passed by the electorate
Effect of initiative 747 (Revenue Lost)
General RoadYear Fund Fund
2002 1,000,987$ 927,749$ 2003 2,242,489 1,956,921 2004 3,575,185 3,111,143 2005 5,046,236 4,440,081 2006 6,696,664 5,872,156
18,561,561$ 16,308,050$
This measure would require state and local governments to limit property tax levy increases to 1% per year, unless an
increase greater than this limit is approved by the voters at an election. (passed in November 2001 with 57.5% of vote)
Effect of initiative 695 (Revenue Lost)
GeneralYear Fund
2000 650,250$ 2001 723,291 2002 983,485 2003 1,067,943 2004 1,148,702 2005 1,236,846
5,810,518$
Shall voter approval be required for any tax increase, license tab fees be $30 per year for motor vehicles, and existing vehicle taxes be
repealed? (Passed November 1999, 56.2%)
How I-747 works
2006 Property Tax Levy 25,320,388$ 1.0% Increase 253,204
Allowed Taxes for 2007 25,573,592$
based on this year's taxes, not assessed value. Your assessedvalue determines the size of your share of the taxes.
Maximum Property Tax Calculation for2007 Taxes on Existing Properties
Plus an amount for New Construction to allow for Growth
The key point is that next year's taxes on existing properties is
How I-747 works
Let’s say Kitsap County has only four (4) houses.
A.
B.
C. D.
How I-747 works (Median value home in unincorporated area)2007 2007 2008 Value 2008 Tax %
Value Taxes Value % Inc. Taxes Inc/Dec
A. 450,000$ 4,208$ 540,000$ 20% 4,251$ 1.0%
B. 360,000$ 3,366$ 406,800$ 13% 3,202$ -4.9%
C. 250,000$ 2,338$ 325,000$ 30% 2,558$ 9.4%
D. 175,000$ 1,636$ 210,000$ 20% 1,653$ 1.0%
1,235,000$ 11,549$ 1,481,800$ 20% 11,664$ 1.0%
Taxes Increase 1.0%
Houses
The tax rate drops from $9.35 to about $8.16 per $1,000
Are property taxes really going up?
15.5% Increase
2.3% Decrease
Are property taxes really going up?
17.7% Increase
7.8% Increase
Are property taxes really going up?
Are property taxes really going up?
2004 2005 2006 2007 4-Year Δ
Value 207,540$ 227,330$ 242,630$ 285,580$ 37.6%
TaxesCurrent Expense 293.30$ 297.47$ 274.44$ 274.87$ -6.3%Roads 388.71 390.57 357.79 356.09 -8.4%State (Schools) 639.17 673.13 630.62 655.62 2.6%Schools 1,045.37 1,042.10 920.71 969.68 -7.2%Fire EMS* 382.19 398.40 356.01 493.36 29.1%Others 173.66 176.49 158.89 161.14 -7.2%
Grand Total 2,922.38$ 2,978.16$ 2,698.46$ 2,910.76$ -0.4%
* Voted Lid Lift in 2006 for 2007
The Property Tax Bargain
Taxes paid by median value home $2,634.26
Taxes paid to County Current Expense 271.14Number of days in a year 365
Cost of County General Government per day $0.74
Property Tax
How much did the $4.5 billion revalued tax base in 2006 bring in to the Kitsap County General Fund in 2007? Answer: 1.0% of 2006’s Levied Taxes 1.0% X $25,320,388 = $253,204 There are 113,483 tax parcels Or about $2.23 increase per parcel
FAQ # 6
Q. How are General Fund monies spent?
A. We can look at how we spend our funds in different ways
A. By object of expenditure (Salaries, benefits, supplies, services, etc.)
B. By program (Law & justice, community services, health & human services, general government)
C. By function (Courts, law enforcement, planning, recreation, etc.)
How We Spend It (by Object)
Salaries (50%) Benefits (18%) Supplies (3%) Services (15%) Intergovernmental (2%) Capital Outlay (2%) Interfund Payments (9%) Others (1%)
How We Spend It…
Supplies &
Services18%
All Others15%
People Costs67%
$2.0
$2.6
$1.5
$9.0
$2.0
$7.8
$17.5
$17.8
$- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0
Millions
Others
Health & Human Services*
Parks and Recreation
Planning and Environment
General Government
Other L&J
Jail
Sheriff
Courts
Tax Supported Expenses Other Revenue Supported Expenses
The Tax Subsidies (By Function)
* Includes Kitsap County’s contribution to the Health District ($1.45 million)
The Court System
Public Defense,
$3,577,921
Clerk, $2,897,514
Prosecutor, $7,763,389
District Courts,
$2,903,804
Superior Courts,
$2,985,681 Juvenile, $7,537,971
General Government
Personnel $1,118,223
Facilities Maintenance
$2,014,249
General Admin. & Operations
$6,396,291
Assessor $2,494,987
County Commissioners
$1,297,447
Treasurer $904,596
Administrative Services $950,642
Auditor $3,686,381
What We Are Doing… Streamlining Services
Combining Services (Where and When Applicable)
Hiring Freeze Creating Enterprise Funding Opportunities Adjusting charges for services where appropriate Personnel Review
Pay Adjustments/Freezes – Where applicable Reduced Staffing Levels
Education campaign Our employees The public
FAQ # 7
Q. If you’re in a hiring freeze, why are you still advertising for positions?
A. There are exceptions to the hiring freeze:1. If the position is grant funded
2. If the position is funded through a contract
3. If the position is critical to public safety
There are about 60 vacancies in the General Fund, we are advertising for about 15 of them.
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