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Hernando Today

Exiting The Tax Maze

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By MICHAEL D. BATES

Published: May 2, 2008

Hernando Today

Editor's note: This is the third in a series of articles on property values in Hernando County and how they relate to the county's budget process.

BROOKSVILLE Since last summer's tumultuous budget workshops, county commissioners have warned taxpayers they will need to trim the sails and start doing more with less money.

They've warned of layoffs, public safety cuts, park closings and reduced library operation hours. The money, they said, just will not be there.

And yet, a look at a just-released audit shows the county's assets increasing $41.3 million, $10.3 million of it going into the general fund cash balance forward account. At their April 15 meeting, commissioners — with no debate — approved the move.

The county budget office breaks it down this way:

Hernando County's total revenue for fiscal year 2007 was $100.1 million.

Total expenditures were $83.4 million.

That leaves an excess of revenue (cash) of $16.7 million.

Of that $16.7 million, the audit deducts $6.3 million because of other financing sources and uses, and that leaves Hernando County with a net change in its fund balance of $10.3 million.

That's $10.3 million in hard cash.

According to the audit, unveiled last week at a county commission meeting, the general fund balance at the beginning of 2007 was $27.9 million.

Now, add the $10.3 million to the general fund and the fund balance (again, think of it as cash) at the end of fiscal year 2007, and the number balloons to $38.3 million — a 37 percent increase over 2006.

And county commissioners continue to warn of needed cuts to deal with falling revenues.

At an April 14 meeting, a budget resolution was presented to the county commission that reconciled the budgeted amounts of revenues and expenses to the audited actual revenues and expenses.

The overall impact of the budget amendment was $41.3 million.

How did the increase in revenues come about?

For that, we have to look at the increase in taxable value through the years.

Assessed property valuations times the millage rate determines property tax revenues.

According to the county's financial report, in 2006 the property tax revenue was $74 million. In 2007, it was $90.4 million, an increase of $16.4 million. While there are other factors involved, the major reason for the hike in revenues was the property tax increase.

Editor's note: In our next story, Hernando Today will present an analysis of county revenues and expenses from 2004 through 2007. The article will also deal with how that $41.3 million more in revenue was disbursed into various accounts in the general fund.

Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.

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