Colorado Local Government Budget and Finance City of Salida, CO May 27, 2015 (updated slides Jun. 15)
Introduction • DOLA includes four Divisions Board of Assessment Appeals Division of Housing • • Hears appeals filed by real and personal Works through programs to improve the property owners regarding the valuation access of all Coloradans to decent, placed on their property. affordable housing. Division of Property Taxation Division of Local Government • • Coordinates and administers the Provide technical, financial assistance implementation of property tax law and information to local governments, throughout the 64 counties. the Governor and the Legislature. Division of Local Government Programs • Budget, Financial and Administrative Assistance Mineral Impact and Gaming Funding and Grant Programs Local Government document filing and retention Federal CDBG and CSBG Grant Programs Special District Election Assistance Conservation Trust Fund and Volunteer Firefighter Financial and legislative analysis on local Pension Distributions government issues DOLA wants to be a partner with local governments to Strengthen Colorado Communities where we all live!
Why is Government Finance Important? “Public finance can be daunting and arcane – and it’s never been more Important questions to think of: important for officials to understand it.” • Where does the money come from? – Governing, Feb ‘14 • Where does the money go? • What “funds” does my government have – ‘The first and most important step and why? toward public financial literacy is What restrictions exist on the various • to “know what you don’t know.”’ funds? • What plan do we have currently and for future financial stability?
Budget vs. Audit • Budgets are forward looking, planning documents – what is the plan for the next fiscal year (or two?). Audits are formal evaluations of the previous fiscal year’s activities after • the year has ended (what actually happened last year?). • One very important difference between the budget and the audit is the general audience for each. – The budget is developed for general audiences with very broad permission to each government board on how it is developed (limited budget document requirements are at C.R.S. 29-1-101 et seq). – An audit, while also being a public document, its formatted and designed primarily for financial analysts to allow measurement of financial conditions for bond investment analysis, credit worthiness and other financial evaluations. The format requirements of audits are prescribed by the Governmental Accounting Standards Board (GASB). • Budget-to-Actual Reports provide a “current” review of financial activities compared against the budget plan (generally a monthly or quarterly evaluation).
Budget Requirements • Colorado Revised Statutes prescribes some basic format requirements for local government budgets • Proposed Expenditures and Anticipated Revenues • Beginning and Ending Fund Balances • Three Years of Data (e.g. 2013, 2014, and 2015) • Written Budget Message • No Deficit Spending • Lease Purchase Supplement • What other items might be included? • Goals/Priorities • Department Summaries • Authorities, Improvement Districts or other LG Units • Community Profile • Mill Levy Certifications • Anything else Staff or Council desires • Capital Plans • Resolutions/Ordinances • Local government fiscal years are on a Calendar basis (Jan. 1 – Dec. 31) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec All local governments must make their own calendar, to ensure items are addressed along the way!
Fund Accounting – Why? • Funds are officially established (by statute, resolution, ordinance or otherwise) segregated accountings for a specific sub-section of revenue and expenses. • Local governments use fund accounting to allow for identification of different revenues and expenditures which are collected and spent for particular purposes. (sometimes called the “color of money”) • Most municipal governments have at least a general fund and a “conservation trust fund”, but many have more ( Salida’s include the SteamPlant Enterprise and Water Activity Enterprise as well). • Segregated Funds allow governments to make sure they are using dollars for their intended purposes. Limiting inadvertent , inadvisable or otherwise illegal use of designated dollars.
Revenues • Plainly stated, “Revenue” is any source of funding received by a local government. Sources can include taxes, fees, forfeitures, intergovernmental transfers, gifts, and others. • Revenue can be restricted for a particular purpose in various ways. For example – Conservation Trust Funds (CTF) can only be used for Park and Recreation operations. Or a gift can be provided to a government to be used for one particular purpose • All local governments have different mix of revenues depending on their local conditions which make an overall picture of how services are provided in that area.
Revenue Comparison 2012 Statewide Aggregate General Fund 2015 Salida General Fund Revenues Revenues 9% Sales & Use Tax 10% Sales & Use Tax Charges for Service 9% Charges for Service Property Tax 6% All Other Intgovt Property Tax 0% 3% Licenses All Other Intgovt Franchise Tax Licenses 3% Misc Revenue Franchise Tax 11% 3% Other Tax Misc Revenue Highway User Tax 3% Other Tax Transfers In 3% Highway User Tax 50% 0% 70% Fines and Forfeits 3% Transfers In 4% Conservation Trust 2% Fines and Forfeits S.O. Tax 0% 0% 2% Occupation Conservation Trust 1% 1% 3% Add MV Fees S.O. Tax Cigarette Tax 2% Occupation 0% 1% Add MV Fees 0% 0% 2012 Pop 4,500 - 6,500 General Fund Revenues 0% Cigarette Tax 1% Unclassified 11% Sales & Use Tax Social Services 10% Charges for Service Property Tax 2012 Poncha Springs General Fund 11% 2012 Buena Vista General Fund Revenues All Other Intgovt 3% Revenues 0% Sales & Use Tax Sales & Use Tax 7% Licenses 2% Charges for Service Charges for Service Property Tax Franchise Tax 3% Property Tax 8% All Other Intgovt 4% Licenses All Other Intgovt Misc Revenue Franchise Tax 3% Licenses Misc Revenue Other Tax Other Tax 5% Franchise Tax Highway User Tax 11% 67% 1% Highway User Tax 0% Misc Revenue 10% Transfers In Other Tax Fines and Forfeits 8% Transfers In 73% Conservation Trust Highway User Tax 0% 0% S.O. Tax 2% Fines and Forfeits 0% 0% 0% Transfers In Occupation 44% 2% 2% Add MV Fees Fines and Forfeits Conservation Trust 1% 0% Cigarette Tax 1% 1% 1% 4% Conservation Trust Unclassified 1% S.O. Tax 0% 0% Social Services 0% S.O. Tax 0% 0% 0% Occupation Occupation 1% 1% 0% 1% Add MV Fees Add MV Fees Cigarette Tax Cigarette Tax Unclassified
Revenue 2015 Adopted vs. Amended 2015 Adopted Salida General Fund Revenues Sales & Use Tax All Other Intgovt Charges for Service 11% Franchise Tax Other Tax Highway User Tax Misc Revenue 6% Fines and Forfeits 70% Conservation Trust 4% Add MV Fees Cigarette Tax 3% Licenses 2% Property Tax 2% S.O. Tax 1% 1% Revenue 2015 0% 0% 0% 0% Occupation Unclassified Source Adopted Amended 0% 2015 Amended Salida Social Services Sales & Use Tax $5,896,600 $6,152,900 0% Transfers In All Other Intgovt $923,900 $1,531,500 General Fund Revenues Charges for Service $510,600 $599,600 Sales & Use Tax Franchise Tax $313,400 $313,400 All Other Intgovt Other Tax $240,000 $240,000 16% Charges for Service Highway User Tax $199,900 $199,900 Franchise Tax Misc Revenue $178,700 $245,200 Other Tax Fines and Forfeits $75,000 $75,000 Highway User Tax Conservation Trust $50,000 $50,000 Misc Revenue Add MV Fees $25,000 $25,000 6% Fines and Forfeits Cigarette Tax $22,000 $22,000 Licenses $20,000 $20,000 Conservation Trust 65% Property Tax $0 $0 Add MV Fees 3% S.O. Tax $0 $0 Cigarette Tax 3% Occupation $0 $0 Licenses 2% Unclassified $0 $0 Property Tax 3% Social Services $0 $0 S.O. Tax 1% 1% Transfers In $0 $0 Occupation 0% 0% 0% 0% Unclassified 0% TOTAL REVENUE $8,455,100 $9,474,500 Social Services 0% Transfers In
Salida’s Revenues City of Salida General Government Revenues Audited Amended Budget Resolutions 2015 Adopted 2015-16 & 2015-30 2015 Amended Amended Grant Revenue 2007 2008 2009 2010 2011 2012 2013 2014 Estimated 2015 Adopted Grants Taxes Charges/Fines/Permits Integovernmental Miscellaneous
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