FY2013 Budget PresentationPublic HearingJune 11, 2012

Municipal Court Room

I am pleased to present to you the Annual Operating and Capital Budget for the fiscal year ending June 30, 2013. In accordance with Georgia law and the charter of the City Council members of the City of Tifton, Article 2, section 2.29(5), this FY2013 Proposed Budget is balanced totaling $34,502,011 an increase of 2%, or $693,129 over the FY2012 Adopted Budget of $33,808,882.

Within the FY2013 Budget, I am proposing a 2 mill increase, which generates an income of $690,831 in the General Fund to support increased Public Safety Efforts, 2% Employee Raises, Support of our Library, and Increase in Code Enforcement.

Larry Riner, City Manager

Please be reminded I will specifically be discussing our General Fund Revenues & Expenditures Only.

The City’s Enterprise Funds are not Supported by Tax Dollars. They are supported by service and user fees.

General Fund Budget Highlights……

• Provision for Contingency Fund for Rainy Days• Senior Citizen Garbage Subsidy• Funding for Public Library and Chamber of

Commerce• 2% Market Adjustment for Employees• Funding for Public Safety Personnel• Funding for Code Enforcement Personnel• Eliminating all Vehicle and Equipment Requests• Funding for Increase in Gasoline

Audit Audit Audit AuditFY 2005 FY 2006 FY 2007 FY 2008

Net Ad Valorem Taxes 1,154,395$ 1,858,501$ 1,949,400$ 1,936,836$ General Government Revenues 7,941,627 8,297,224 8,681,338 9,015,328 Interest Income 35,116 68,107 162,900 161,611 Total Revenues $9,131,138 $10,223,832 $10,793,638 $11,113,775Total Expenditures 10,119,067 10,115,453 11,200,625 11,560,289

Excess of Expenditures Over Revenues (987,929) 108,379 (406,987) (446,514)

Other Financing Sources (Uses) * Proceeds From Long-Term Debt 122,975 753,142 504,449 0 Internal Transfers 900,000 666,844 686,144 600,000 Transfers out (12,650) (779,719) 0 0

Net Change in Fund Balance 22,396 748,646 783,606 153,486

Beginning Year Fund Balance 3,821,669 3,844,065 4,592,711 5,376,317

YEAR END FUND BALANCE 3,844,065 4,592,711 5,376,317 5,529,803

L.O.S.T. 2,551,541 2,938,117 2,926,027 3,017,176

General Fund SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCE

Audit Audit Audit EstimatedFY 2009 FY 2010 FY 2011 FY 2012

Net Ad Valorem Taxes 2,015,995$ 2,051,027$ 2,036,866$ 2,260,400$ General Government Revenues 8,689,698 8,854,786 8,963,465 9,045,404 Interest Income 55,805 26,111 20,911 5,000 Total Revenues $10,761,498 10,931,924$ $11,021,242 $11,310,804Total Expenditures 12,185,148 11,185,705 11,505,194 11,134,767

Excess of Expenditures Over Revenues (1,423,650) (253,781) (483,952) 176,037

Other Financing Sources (Uses) * Proceeds From Long-Term Debt 0 6,155,166 120,676 224,474 Internal Transfers 900,000 633,460 100,000 0 Transfers out (578,555) (6,393,404) 0

Net Change in Fund Balance (1,102,205) 141,441 (263,276) 400,511

Beginning Year Fund Balance 5,529,836 4,427,598 4,569,039 4,569,039

YEAR END FUND BALANCE 4,427,631 4,569,039 4,305,763 4,969,550

L.O.S.T. 2,554,000 2,789,424 2,760,376 2,850,000

General Fund SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCE

Where the revenue comes from…….

SOURCES OF REVENUESAD VALOREM TAXES 2,303,637 2,275,180 2,285,768 3,034,041 748,273 32.74% 24.81%FRANCHISE TAX 1,228,407 1,155,000 1,215,000 1,217,000 2,000 0.16% 9.95%LOCAL OPTION SALES TAX 2,730,376 2,813,058 2,850,000 2,914,903 64,903 2.28% 23.83%BEVERAGE SALES AND USE TAX 417,644 454,500 454,500 458,000 3,500 0.77% 3.74%GENERAL BUSINESS TAXES/LICENSES & PERMITS 816,427 736,305 808,800 838,500 29,700 3.67% 6.86%INSURANCE PREMIUM TAX 810,707 835,000 835,000 811,000 (24,000) -2.87% 6.63%INTERGOVERNMENTAL REVENUES 591,575 104,000 267,590 103,825 (163,765) -61.20% 0.85%CHARGES FOR SERVICES 1,235,206 1,409,250 1,208,309 1,407,672 199,363 16.50% 11.51%FINES AND FORFEITURES 745,908 660,799 1,125,200 808,200 (317,000) -28.17% 6.61%INVESTMENT INCOME 20,911 8,000 8,000 2,000 (6,000) -75.00% 0.02%CONTRIBUTIONS/DONATIONS-PRIVATE SOURCE 4,700 4,000 2,800 (1,200) -30.00% 0.02%MISCELLANEOUS REVENUE 120,444 376,327 370,000 381,500 11,500 3.11% 3.12%OTHER FINANCING SOURCES 220,676 105,000 99,001 252,000 152,999 154.54% 2.06%

TOTAL GENERAL FUND REVENUE 11,241,918 10,937,119 11,531,168 12,231,441 700,273 11.83% 100.00%

% OF GENERAL

FUND REVENUE

% CHANGE

FROM FY2011

FY2011 AUDITED ACTUAL

CITY OF TIFTONFY2013 GENERAL FUND BUDGET

SUMMARY OF FUNDS AND APPROPRIATIONS

FY2011 ADOPTED

BUDGET

FY2012 ADOPTED

BUDGET

FY2013 CHANGE FROM FY2012

FY2013 PROPOSED

BUDGET

RevenuesWhere Do They Come From?

FY 2013 Total Projected General Fund $12,231,441.00

Where the tax dollar goes….

100 GENERAL FUND 11,491,918 11,531,168 12,231,441 700,273

CITY COUNCIL 73,131 80,036 81,811 1,775GENERAL GOVERNMENT 2,215,191 1,345,267 2,006,603 661,336MUNICIPAL COURT 170,500 186,126 192,410 6,284POLICE DEPARTMENT 3,791,187 4,247,655 4,152,501 (95,154)FIRE DEPARTMENT 2,511,815 2,587,499 2,566,343 (21,157)PUBLIC WORKS 1,777,321 2,081,389 2,164,949 83,560CEMETERY 454,475 198,359 226,882 28,523SENIOR CENTER 111,015 120,073 88,267 (31,806)NUTRITION PROGRAM 50,559 60,275 87,047 26,772ENVIRONMENTAL MGT - 274,489 314,629 40,140DEBT SERVICE 350,000 350,000 350,000 0EXPENDITURE TOTAL 11,505,194 11,531,168 12,231,441 700,273REVENUE / EXPENDITURE (13,276) 0 0

CITY OF TIFTONSUMMARY OF FY2013 BUDGET OBLIGATIONS BY FUND

FY2011 AUDITED BUDGET

FY2012 REVISED BUDGET

CHANGE FROM FY2012

BUDGETDEPARTMENTS

FY2013 PROPOSED

BUDGET

Use of Funds By Departments: Where the money goes …

Why We’re Where We Are Today….

Local Option Sales Tax collections…

Gas Fund Transfers

Gas Fund Contribution to the General Fund lowers down the millage rate for the City of Tifton Residents. Support Gas!!!

In Addition To These Severely Reduced Funding Levels, Council Has Taken The Following ActionsTo Avoid A Millage Rate Increase

• All Outside Agency Funding Has Been Cut Except Library & Chamber of Commerce

• Workforce Reduced by Over 40 Employees

• Employees Have Only Received a 3% Increase in the Last 5 Years

• Take Home Vehicles Reduced to Essential On-Call Employees

ALSO….

• Reduction in the Workforce, Resulting in Increased Workload

• Combined Positions and Duties

• City’s Pension Plan Has Been Frozen

• Increases In Employee Insurance Premiums and Deductibles

CITY 2008 2009 2010 2011 2012

Real & Personal & Public Utility 327,723,382 334,794,881 333,963,004 337,886,384 336,868,612Motor Vehicles 32,759,550 33,927,480 29,176,570 29,525,780 31,435,290Mobile Homes 1,788,249 1,970,124 1,628,131 1,588,298 1,498,763Timber - 100% 0 0 0 0 0Heavy Duty Equipment 3,983 0 10,827 0 0Gross Digest 362,275,164 370,692,485 364,778,532 369,000,462 369,802,665Less M & O Exemptions 33,939,859 32,698,296 34,998,228 32,530,252 31,289,898Net M & O Digest 328,335,305 337,994,189 329,780,304 336,470,210 338,512,767

Gross M&O Millage 15.821 15.524 14.667 15.047 16.994Less Rollbacks 9.062 8.765 7.908 8.288 8.235Net M&O Millage 6.759 6.759 6.759 6.759 8.759

Total City Taxes Levied $2,219,218 $2,284,503 $2,228,985 $2,274,202 $2,965,033

Net Taxes $ Increase $49,256 $65,284 -$55,518 $45,217 $690,831Net Taxes % Increase(Decrease) 2.27% 2.94% -2.43% 2.03% 30.38%

CURRENT 2012 TAX DIGEST AND 5 YEAR HISTORY OF LEVY

TAXES: HOW MUCH DOES IT COST ME AS A CITY RESIDENT?

CURRENT PROPOSED CURRENT PROPOSED CURRENT PROPOSEDMILLAGE MILLAGE MILLAGE MILLAGE MILLAGE MILLAGE

ASSESSED VALUE OF HOME 100,000 100,000 100,000 MULTIPLY BY TAX RATE OF 40% 40% 40% 40%

TAXABLE VALUE OF PROPERTY 40,000 40,000 40,000 LESS: HOMESTEAD EXEMPTION SENIOR CITIZEN 25,000 STANDARD EXEMPTION 10,000

NET TAXABLE VALUE OF PROPERTY 15,000 15,000 30,000 30,000 40,000 40,000 MILLAGE RATE 0.006759 0.008759 0.006759 0.008759 0.006759 0.008759AMOUNT OF PROPERTY TAX 101.39$ 131.39$ 202.77$ 262.77$ 270.36$ 350.36$ NET INCREASE 30.00$ 60.00$ 80.00$

MONTHLY 2.50 5.00 6.67

COST OF SMALL WHOPPER MEAL : -)COST OF ONE BIG WHOPPER MEAL : -)

COST OF DOUBLE WHOPPER MEAL : -)

SR. CITIZEN REG TAXPAYER WITHOUT EXEMPTION

TAXES FOR A 100,000 VALUE OF HOME

CUTS THAT WILL BE MADE IF MILLAGE RATE IS NOT INCREASED

• Deplete All Contingency Funds - $300,000• Cut Demo & Community Cleanup - $60,000• Remove Code Enforcement Position - $45,000• Cut Library Budget in Half - $69,000• Additional General Fund Cuts Totaling - $206,000• Reduce Hours for Crime Suppression Operation –

Police Department

Next Step….

PUBLIC HEARING SCHEDULESJune 11, 2012 12:00 P.M. - Public Hearing

on the Proposed Budget

June 11, 2012 12:00 P.M. – First Public Hearing on the

Proposed Millage rate increase

June 11, 2012 6:30 P.M. - Second Public Hearing on the Proposed Millage rate increase

June 25, 2012 5:00 P.M. – Third Public Hearing on the Proposed Millage rate increase AND Adoption of the Proposed FY2013 Budget.

Available on the City of Tifton’s Website at www.tifton.net