Introduction to City Finances

Waynesboro Comprehensive Plan

April 25, 2017
 How are Plans Implemented?
Physical Improvements
Programs of Regulation
Programs to Stimulate Economic Activity
Redevelopment Activities

MONEY & POLITICAL WILL

 City Funds Fiscal Year 2017
BUSINESS TYPE (Fee-Based) FUNDS
Water Fund $3,796,026
Sewer Fund 5,936,855
Stormwater Fund 1,268,538
Refuse Fund 1,339,796

General Fund (Tax Supported) 46,951,410

Schools (Local, State, Federal) 34,622,171

General Fund Revenue by Source
Other 5%

State 18%

Local 77%
 FY17 General Fund Local Revenues by Type
BUSINESS LICENSE TAXES
6% OTHER PROPERTY TAXES UTILITY & CONSUMPTION
6% TAX 3%
MISCELLANEOUS REVENUE
2%
PERSONAL
PROPERTY
TAXES 10%

SALES TAXES 15% CHARGES FOR SERVICES 1%

OTHER LOCAL REVENUES

1%
Other 4%
MISC LOCAL TAXES 17%

PENALTY & INT ON TAX 1%

REAL PROPERTY TAXES 38%

RGLTRY PERMITS/FEES 1%
 Select Components of Revenue
16,000,000

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0
2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Budget 2018
Proposed

RE M&T Sales Meals and Lodging

 What can a city do to generate more
revenue?
Raise taxes and fees
Encourage economic activity
Borrow money
Secure grants
 Real Estate Tax Rate
$0.01 = $171,959.11
$0.07 = $1,203,714
The proposed new tax rate would be
$0.87/$100 of value
The RE tax on a $200,000 house would
increase by $140/year
The median RE tax rate in VA is $1.05/$100
FY17 GENERAL FUND USES OF REVENUES BY GOVERNMENT
FUNCTION
MISC & NON-DEPT, <1%
DEBT RELATED EXPENSES, 5%
COURTS, 3%

ADMINISTRATION,
9%

LOCAL SCHOOL SUPPORT,

PUBLIC SAFETY, 22%
30%

TRANSFERS TO PUBLIC WORKS, 10%

OTHER FUNDS/FB,
9%

PARKS &
CULTURAL, 7%
PLANNING, 1% HEALTH & WELFARE, 1%
ECONOMIC
DVLPMNT &
 Revenue less Expense = Change in FB
45,000,000

40,000,000

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

-
FY10 FY11 FY12 FY13 FY14 FY15

(5,000,000)

revenue expense end FB change in FB

 The General Fund
Un-spendable
Restricted
Committed
Assigned Unrestricted
Unassigned
 Governmental Funds
Fund Balance June 30, 2016
Un-spendable $582,029
Restricted 1,296,804
Unrestricted 15,381,724
Unassigned 11,058,122
 Use of Fund Balance
What is the legitimate purpose of fund balance?

A healthy fund balance ensures the financial health of

the organization

Provides operating capital

Provides a safety net for emergencies

Allows Council to make appropriations without

generating additional revenue

Can be used as a mechanism to smooth the budgeting

process by funding non-recurring costs without having
to generate new revenue
 COMMITTED FUNDS 01.04.17

HEALTH DEPT/CITY CONTRIBUTION $13,171.00

HEALTH DEPT/NON-OP EXPENSE 34,765.00

SPECIAL LIBRARY BOOK FUND RE 2,769.58

TECHNOLOGY RESERVE 622,154.00

ACSA LANDFILL CAPITAL CONTRIBUTION 300,000.00

GOVERNMENTAL EQUIPMENT REPLACEMENT 500,000.42

GOVERNMENTAL FACILITY MAINTENANCE 722,254.57

SCHOOL FACILITY MAINTENANCE 151,424.00

REVENUE STABILIZATION 500,000.00

INDUSTRIAL PARK DEVELOPMENT 1,120,838.06

UNDESIGNATED CAPITAL PROJECTS 715,000

TOTAL $4,682,376.63
Distribution of Local
Debt

General
Fund CIP
Sewer Fund
31,468,269 General
43% Fund
Schools
19,586,646
27%
Water Fund
11,368,808
15%
 Rate increase per $10,000,000 of debt = Real property tax rate increase (in cents) needed to fund debt service amount:
annual Impact
payback debt on tax
Principal term in interest service rate (in
amount years rate payment cents) 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000

no interest

no interest
10,000,000 20 0.00 500,000 2.98 5.96 8.94 11.92 14.90 17.88 20.86
10,000,000 25 0.00 400,000 2.38 4.77 7.15 9.53 11.92 14.30 16.69
10,000,000 30 0.00 333,333 1.99 3.97 5.96 7.95 9.93 11.92 13.91
10,000,000 20 3.25 680,635 4.06 8.11 12.17 16.22 20.28 24.34 28.39

3.25 rate

3.25 rate
10,000,000 25 3.25 584,779 3.48 6.97 10.45 13.94 17.42 20.91 24.39
10,000,000 30 3.25 522,248 3.11 6.22 9.34 12.45 15.56 18.67 21.79
10,000,000 20 3.50 695,952 4.15 8.29 12.44 16.59 20.74 24.88 29.03

3.5 rate

3.5 rate
10,000,000 25 3.50 600,748 3.58 7.16 10.74 14.32 17.90 21.48 25.06
10,000,000 30 3.50 538,854 3.21 6.42 9.63 12.84 16.06 19.27 22.48
10,000,000 20 3.75 711,466 4.24 8.48 12.72 16.96 21.20 25.44 29.68
3.75 rate

3.75 rate
10,000,000 25 3.75 616,957 3.68 7.35 11.03 14.71 18.38 22.06 25.74
10,000,000 30 3.75 555,739 3.31 6.62 9.94 13.25 16.56 19.87 23.18
10,000,000 20 4.00 727,176 4.33 8.67 13.00 17.33 21.67 26.00 30.33
4.0 rate

4.0 rate
10,000,000 25 4.00 633,404 3.77 7.55 11.32 15.10 18.87 22.65 26.42
10,000,000 30 4.00 572,898 3.41 6.83 10.24 13.66 17.07 20.48 23.90
10,000,000 20 4.25 743,081 4.43 8.86 13.28 17.71 22.14 26.57 31.00
4.25 rate

4.25 rate
10,000,000 25 4.25 650,086 3.87 7.75 11.62 15.50 19.37 23.24 27.12
10,000,000 30 4.25 590,328 3.52 7.04 10.55 14.07 17.59 21.11 24.63
 1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000

500,000

0
3,714,806
3,856,185
3,816,167
2,997,321
2,766,398
2,733,634
2,463,786
2,439,015
2,218,234
2,166,315
2,144,069
2,129,535
1,915,044
1,797,317
1,287,267
FY15-FY38

823,880
826,543
753,338
752,538
756,006
753,744
755,750
752,025
TOTAL GENERAL OBLIGATION DEBT SERVICE