143
Objective
•
Compare FY2016 budgets for Mecklenburg & Wake Counties
•
Focus on property tax revenue allocated to education funding
•
Provide a summary of the FY2015 funding comparison to FY2016
•
Identify factors that may drive funding differences
33
MecklenburgCountyNC.Gov
Methodology
• Collaborate with Wake County’s Budget Office
• Utilized the General Fund as starting point for comparison
• Determine property tax funding for service
• Compare similar County funded services where possible
34
144
MecklenburgCountyNC.Gov
Methodology
Total Adopted General Government Budget
Isolate Property Tax Funded Portion
Compare Tax Funded Portion for Each Service
35
MecklenburgCountyNC.Gov
FY2016 Detailed Comparison
145
Property Tax Revenue
FY2016
Adopted Budget
Tax Base (Billions)
Value of 1 Penny
Tax Rate
Collection Rate
Property Tax Revenue
Prior Year Tax Revenue
Current Tax Revenue
Mecklenburg
County
$119.5
$11,725,206
81.57¢
98.1%
963,251,078
6,826,000
$ 956,425,078
Wake
County
$ 130.8
$12,962,000
61.45¢
99.1%
799,893,000
3,390,000
$ 796,503,000
In FY2016, Wake County increased the tax rate by 3.65 ₵ from 57.80 ₵.
37
MecklenburgCountyNC.Gov
Comparable Operating Budgets
FY2016 Adopted Budget
Property Tax Revenue
Property Tax Revenue For Debt Service
Comparable Operating Property Tax Revenue
38
146
Mecklenburg
Wake
$956,425,078 796,503,000
‐234,078,880 ‐182,892,000
$722,346,198 $613,611,000 MecklenburgCountyNC.Gov
Public School Operating Funding
Property Tax Revenue Comparison
FY2016 Budget
Mecklenburg
Property Tax Revenue $722,346,198
% Property
Tax Revenue
Pennies
on Tax
% Property
Tax Revenue
Wake Pennies
on Tax
75.53% 61.61
$613,611,000
77.04% 47.34
School Operating* $399,902,352 41.81% 34.11
Other County Services 322,443,846
33.71% 27.50
Property Tax Expense $722,346,198
75.53% 61.61
Cost Per Student
Enrollment
147,769
Per Pupil Funding $2,722
$385,121,946 228,489,054
$613,611,000
48.35% 29.71
28.69% 17.63
77.04% 47.34
158,400
$2,437
*excludes debt service and capital repair & replacement
CMS final Board of Education budget allocates $37.7 million to Charter Schools
Wake final Board of Education budget allocates $21.4 million to Charter Schools Schools
39
MecklenburgCountyNC.Gov
Community College Comparison
FY2016 Adopted Budget
Community College Operating
% of Property Tax Revenue Pennies on the Tax
Mecklenburg
$33,873,949
3.56% 2.89 Wake
$19,416,000
2.44% 1.50 Community College operating expenses are 100% funded with property tax within each jurisdiction’s budget
40
147
MecklenburgCountyNC.Gov
County Service Comparisons
Challenges with Comparison
• No two governments are identically structured
• No two governments provide services exactly the same
• The geographic location of an organization has an influence
on service delivery
• There are probably other methodologies for consideration
(i.e., factor other GF revenue, such as Sales Tax or Register of
Deed
42
148
MecklenburgCountyNC.Gov
Demographics
Demographics*
Total Population
Median Age
Per‐Capita Income
Population Living Below Poverty
Population Per Square Mile
Square Miles
Wake
998,691 35.4
33,727
11.3%
1,164.90
857.32 Mecklenburg
1,012,539
34.3
32,817
15.5%
1,854.77 545.91 *population, age and income from Census Bureau Community Survey 2014 Estimates
43
MecklenburgCountyNC.Gov
Health & Human Services Comparison
FY2016 Adopted Budget
Health and Human Services
Other Revenue
Property Tax Funded
Percent of Property Tax Revenue
Pennies on the Tax
Mecklenburg
$286,132,305
‐146,369,575
$139,762,730
Wake
$190,284,984
‐104,932,288
$85,352,696
14.61% 11.92 10.72% 6.58 Census Bureau Community Survey 2014 estimates 11.3% of Wake County living below poverty, and 15.5% of Mecklenburg County living below poverty. 44
149
MecklenburgCountyNC.Gov
Health and Human Services Detail
Mecklenburg
FY2016 Budget
Social Services
Public Health
Community Support Services
Behavioral Health Division
Child Support Enforcement
Offsite Inmate Medical Care
Provider Services Organization
$ 183,667,324 65,704,831 14,160,068 11,506,604 8,878,126 1,500,000 715,352 Total Expenses
Property Tax Funded
$ 286,132,305
$ 139,762,730
Wake
FY2016 Budget
Social Service‐ Economic Self Sufficiency
$77,150,719 Behavioral Health
Child Welfare
Human Service – Admin.
Children Youth and Family Health Clinics
Public Health
25,206,868 24,284,336 21,640,796 18,412,011 17,534,251 6,056,003 Total Expenses
Property Tax Funded
$ 190,284,984
$ 85,352,696
45
MecklenburgCountyNC.Gov
Sheriff’s Office Comparison
FY2016 Adopted Budget
Sheriff’s Office
Other Revenue
Property Tax Funded
Mecklenburg
$113,663,314
‐21,262,500
$92,400,814
Wake
$76,081,363
‐5,185,376
$70,895,987
9.66% 7.88 8.90% 5.47 Percent of Property Tax Revenue
Pennies on the Tax
46
150
MecklenburgCountyNC.Gov
Park & Recreation Comparison
FY2016 Adopted Budget
Park and Recreation
Mecklenburg
$37,949,417
Wake
$2,687,298
‐5,558,202
$32,391,215
‐150,374
$2,536,924
3.39% 2.76 0.32% 0.20 Other Revenue
Property Tax Funded
Percent of Property Tax Revenue
Pennies on the Tax
47
MecklenburgCountyNC.Gov
Public Library Comparison
FY2016 Adopted Budget
Public Library Other Revenue
Property Tax Funded
Percent of Property Tax Revenue
Pennies on the Tax
48
151
Mecklenburg
$31,419,942
‐1,099,000
$30,320,942
Wake
$19,578,614
‐1,071,250
$18,507,364
3.17% 2.59 2.32% 2.53 MecklenburgCountyNC.Gov
Debt Service Comparisons
Debt Service Comparison
FY2015 Budget
Debt Service
Other Revenue
Property Tax Funded
Mecklenburg
County
$297,211,549
‐63,132,669
$234,078,880
Public School Debt
$111,915,413 Other Debt*
122,163,467 Tax Funded Debt Service $234,078,880
% total property tax
24.47%
Pennies
on Tax
19.96
11.70%
9.54
12.77%
10.42
24.47%
19.96
Wake
County $266,220,000
‐83,328,000
$182,892,000
$153,907,751 28,984,249
$182,892,000
% total property tax
Pennies
on Tax
22.96%
14.11
19.32%
11.87
3.64
2.24
22.96%
20.00
* Other Debt includes County debt and debt for Community College
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MecklenburgCountyNC.Gov
Debt Levels
Debt Levels
Mecklenburg
Governmental Outstanding Debt Wake
$ 1,557,491,932
$ 2,426,493,311
15.92%
18.34%
Governmental Debt Service as a Percentage of Non‐Capital Operating Expense
FY2015 Audited Financial Statements
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MecklenburgCountyNC.Gov
General and Debt Service Combined
FY2015 Budget
General Fund
Total Debt Service
Interfund Transfers
Other revenue
Property Tax Funded
Public School
Operating
Debt Service
Total Public School
Other Expenses
Operating
Debt Service
Total Other
Total Tax Funded Budget
Mecklenburg
County
% total property tax
Pennies
on Tax
$1,181,738,548
297,211,549
% total property tax
Pennies
on Tax
$1,142,963,000
266,220,000
‐221,042,000
‐391,638,000
‐522,525,019
$956,425,078
Wake
County 100%
81.57
399,902,352 41.81%
111,915,413 11.70%
34.11 $796,503,000
100%
61.45 29.71
9.54
385,121,946 48.35%
153,907,751 19.32%
511,817,765 53.51%
43.65
539,029,697 67.68%
41.59
322,443,846 33.71%
27.50
228,489,054 28.69%
17.63
122,163,467 12.77%
$252,575,931 34.58%
10.42
$956,425,078
52
100%
153
19.99
81.57
28,984,249 11.87
3.64%
2.24
257,473,303 32.33%
19.86
MecklenburgCountyNC.Gov
$796,503,000
100% 61.45
Tax Funded Budget
FY2015 to FY2016 Comparison
Comparison: FY2015 & FY2016
Property
Tax Revenue
Property Tax Rate
Value of 1 Penny
Current Tax Revenue
FY 2015
Mecklenburg
FY 2016
Wake
Mecklenburg
Wake
81.57¢
57.80¢ 81.57¢
61.45¢
$ 11,562,530 $ 12,637,000 $ 11,725,206 $ 12,962,000 $ 943,155,572 $ 730,330,000 $ 956,425,078 $ 796,503,000 54
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MecklenburgCountyNC.Gov
Comparison: FY2015 & FY2016
Property
Tax Funding
FY2015
Mecklenburg
Tax Impact
School Operating
Pennies on Tax
FY2016
Wake
Mecklenburg
Pennies on Tax
Tax Impact
Tax Impact
Pennies on Tax
Wake
Pennies on Tax
Tax Impact
$ 381,032,105 32.95
$ 340,558,934 26.95
$ 399,902,352 34.11
$ 385,121,946 29.71
Other Operating
330,872,867 28.62
225,208,066 17.76
322,443,846 27.50
228,489,054 17.63
School Debt Service
100,604,832 8.70
136,416,269 10.79
111,915,413 9.54
153,907,751 11.87
Other Debt Service
130,645,768 11.30
28,146,731 2.23
122,163,467 10.42
28,984,249 2.24
Total $ 943,155,572 81.57¢ $ 730,330,000 57.80¢ $ 956,425,078 81.57¢ $ 796,503,000 61.45¢
Per‐Pupil Funding
2,186
2,086
2,722
55
2,437
MecklenburgCountyNC.Gov
Comparison: FY2015 & FY2016
Property Tax Funding
FY2015
Mecklenburg
Tax Impact
Pennies on Tax
FY2016
Wake
Mecklenburg
Pennies on Tax
Tax Impact
Tax Impact
Pennies on Tax
Wake
Tax Impact
Pennies on Tax
Community College
$ 32,284,482
2.79
$ 16,478,000
1.30
$ 33,873,949
2.89
$ 19,416,000 1.50
Health and Human
131,487,321 11.37
82,693,409 6.54
139,762,730 11.92
85,352,696 6.58
Sheriff's Office
88,244,907 7.63
68,439,605 5.42
92,400,814 7.88
70,895,987 5.47
Park and Recreation
27,977,480 2.42
2,442,340 0.19
32,391,215 2.76
2,536,924 0.20
Public Library
29,258,277 2.53
17,153,845 1.36
30,320,942 2.59
18,507,364 1.43
206,822,523 17.89
173,631,032 13.74
200,733,640 17.12
170,716,042 13.17
Other Undesignated (185,202,123) ‐16.02
Revenues
(135,630,215) ‐10.73
(207,039,444) ‐17.66
(138,935,959) ‐10.72
Total $225,208,016 17.82
$322,443,846 27.50
$228,489,054 17.63
MecklenburgCountyNC.Gov
All Other Operating $330,872,867 28.62
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155
Conclusions
• Mecklenburg allocates more operating dollars per pupil to schools
• Mecklenburg allocates more property tax in terms of pennies on the rate
to school operating
• Mecklenburg has a larger operating budget due to differences in the
services provided
• Mecklenburg County allocates more property tax revenue to other non‐
education services. (i.e., park recreation, social services)
• When looking at change in education funding from year‐to‐year, the
fluctuation of debt service must be considered. For example, when
education debt service payments decrease the operating budget for
education is not increased solely for that reason. And conversely, when
education debt service increases, education operating does not decrease
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MecklenburgCountyNC.Gov