Many may recall that determining the Sheriff’s office budget for the current fiscal year was not a smooth process. The county discussed implementing a Municipal Service Taxing Unit (MSTU) for the Sheriff’s office on two occasions which would give the office its own line item on the tax bill. The Sheriff has been in opposition to this move, stating it puts all of the burden on those who pay property taxes. The question of what amount of funding the sheriff would receive for this fiscal year and where the funding would come from remained uncertain until the last minute of budget hearings when the county decided to take money from OPEB funds (Other Post Employment Benefits) to cover the Sheriff’s total budget request.
Sheriff Nienhuis has come up with a budgeting idea that he feels will alleviate the uncertainty and last minute drama of how his office is funded. The idea comes from Columbia County in North Florida where the Sheriff’s Office is funded based on a designated percentage of their general fund. Additionally, a minimum base budget is set so that the next fiscal year cannot fall below the prior year’s base.
Sheriff Nienhuis would like to enter into an interlocal agreement with the county, establishing a minimum base budget at FY 2010 levels, below which the Sheriff’s Office would have difficulty functioning. Each fiscal year, the Sheriff proposes that the county set aside 45% of anticipated general fund revenues for the Sheriff’s budget. The Sheriff’s Office describes the 45% figure as “a historical percentage that the Sheriff’s Office has received.” This would initially be a one year pilot program.
The fund would be considered a special revenue fund and would be controlled by the Board of County Commissioners. If the sheriff does not utilize the full 45% of revenues, the funds can carry over to the next fiscal year. It is important to realize though that 45% of anticipated revenues might not be 45% of actual revenues.
The difference between the special revenue fund and the MSTU that was being discussed is that the MSTU is funded strictly from property taxes. The special revenue fund would be generated from the multiple revenue streams within the general fund, which includes property taxes and other taxes, preserving a wider tax base. The Sheriff’s Office believes “this is a more equitable and sustainable approach.” Roughly eighty percent of the general fund is made up of property taxes, while twenty percent is other revenue sources.
With an MSTU, the sheriff would be responsible for additional accounting, meaning he would need to hire people to provide this service. The Sheriff explained during a 2015 commission meeting that they save $9 million dollars a year having efficiency to scale.
With a special revenue fund, you will not see a separate line item on your tax bill telling you the amount of your county taxes going to pay for the Sheriff’s Office.
Sheriff Nienhuis stated that he will be discussing the details of the plan and legalities with the county in the near future.
Updated for Clarity 3/18/16: paragraph beginning “The difference between the special revenue fund…”