Cutting Thru Budget Confusion - - A Short Primer on Budget Terms
The County budget can be confusing to read and analyze due to the nature of the accounting system. We are all used to budgeting for ourselves, but when it comes to reading a City, County, State or Federal budget, we can easily get lost and frustrated.
Let's work with the FY 09-10 County budget and take a look at how the Revenues are categorized.
Total County Revenue (pg 30 in Budget, pg 2 in Charts)
|
Revenue Source |
FY 09-10 ($ Million) |
% of Revenue |
|
General Purpose Revenue |
696.8 |
12.8 |
|
Other General Fund |
2,083.7 |
38.2 |
|
Dedicated Revenue |
2,676.4 |
49.0 |
|
Total |
$5,456.9 |
100.0% |
General Purpose Revenue are revenues which go into the County's General Fund. The money comes from a variety of sources. Primary sources are: property taxes, vehicle license fees, interest, and sales tax. The use of these revenues is unrestricted, which means the Board of Supervisors can spend them on whatever programs they want to.
General Fund is the main operating fund for the County. This fund is used to account for expenditures and revenues for Countywide activities. Common uses of General Fund revenues are police, fire, and public works.
Dedicated Revenues are revenues from Special Assessment Districts and single purpose funds. These revenues are collected by the County and are earmarked for a specific use. These funds are not meant for use by the County for Countywide operations. The County collects these funds because they have the mechanism for doing so - the Tax Collector. Examples of Dedicated Revenues are Road, Flood, Harbors Beaches & Parks, Integrated Waste Management Department, Airport, Community Facility Districts, and Internal Service Funds.
All Funds Under the Board of Supervisors (pg 31 in Budget, pg 3 in Charts)
One way to think of these areas is "Groups That Write Checks". The county gets a "check" from Assessment Districts, Special Districts, etc.
|
Group of Funds |
FY 09-10 ($Million) |
% of Revenue |
|
County General |
2,780.5 |
51.0 |
|
Special Revenue |
877.2 |
16.1 |
|
Internal Svcs & Enterprise |
1,138.2 |
20.8 |
|
Assessment Districts |
212.4 |
3.9 |
|
Special Districts |
326.1 |
6.0 |
|
Joint Powers & Public Authority |
1.2 |
0.0 |
|
Orange County Development Agency |
121.3 |
2.2 |
|
Total |
$5,456.9 |
100.0% |
Compare the All Funds table to Total County Revenue:
County General Fund = General Purpose Revenue + Other General Fund
$2,780.5 = $696.8 + 2,083.7
Dedicated Revenue = Special Revenue + Internal Services + Assessment Districts + Special Districts + Joint Powers + OC Development Agency
$2,676.4 = $877.2 + 1,138.2 + 212.4 + 326.1+ 1.2 + 121.3
Understanding the Numbers
About half of the County revenue is used for general, Countywide expenses. About 12% of the revenue can be allocated however the Supervisors want to (General Purpose Revenue.)
About half of the money the County receives is already earmarked for specific uses and is not supposed to be used for general, Countywide expenses.
Sources of County Revenues (pg 32 in Budget, pg 4 in Charts)
Actions must be taken to get the money to the County. Funds are transfered from other governmental agencies, taxes are collected, permits are sold, etc. This is a summary of the actions the County takes to actually get the money in from the "checkwriters" discussed above.
|
Source |
$ Million |
% of Revenue |
|
Intergovernmental |
1,657.7 |
30.4 |
|
Fund Balance Available |
1,121.7 |
20.6 |
|
Charges for Services |
640.4 |
11.7 |
|
Taxes |
811.6 |
14.9 |
|
Misc Revenues |
369.0 |
6.8 |
|
Other Financing Sources |
419.6 |
7.7 |
|
Revenue from Use of Money & Property |
218.4 |
4.0 |
|
Reserve Cancellations |
101.2 |
1.8 |
|
Fines, Forfeitures, Licenses, Permits |
117.3 |
2.1 |
|
Total |
$5,456.9 |
100.0% |
OC budget: http://egov.ocgov.com/ocgov/Info%20OC/Departments%20&%20Agencies/Finance%20&%20Budget
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