BUDGET PHILOSOPHY AND PROCESS

PHILOSOPHY:

Escambia County is committed to providing high levels of service to its residents, at the lowest possible cost, in order to minimize taxpayer burden. By law, the County's Budget must be in balance, both on an overall basis and within each of the funds.

PROCESS:

Fiscal Year

Escambia County's budget is based on a fiscal, rather than calendar year. The fiscal year begins on October 1 and ends on September 30. Fiscal year 2025/2026 runs from October 1, 2025 through September 30, 2026.

Statutory Requirements

In the State of Florida, county budgets are governed by State Statutes. Chapter 129 of the Florida Statutes, entitled "County Annual Budget", specifically directs (among other requirements) that a budget be prepared annually and that it be balanced, and that in no case shall total appropriations of any budget be exceeded (Florida Statutes 129.07).

Funds Included

The County's Budget is consolidated and presents planned disposition of all available resources in all funds. The County Commissioners' adopted budget serves as the County's financial plan for the ensuing fiscal year.

Basis of Budgeting/Accounting

The budget is prepared by fund, function, and department, and is adopted on a basis consistent with GAAP as required by F.S. 129. The budget is also reported in the county-wide financial statements in a manner consistent with GAAP in the audited financial statements. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

The modified accrual basis of accounting and budgeting is used for Governmental Funds (General, Special Revenue, Debt Service and Capital Projects). Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which services or goods are received and liabilities are incurred. Depreciation expense is completed using full accrual accounting and encumbrances are not recognized except for note disclosure in modified accrual and full accrual accounting.

Revenue is considered available when it is collectable during the current period, and the actual collection will occur either during the current period, or after the end of the period but in time to pay current year-end liabilities. Generally, property taxes, grants, and inter-fund transfers are accounted and budgeted for on a modified accrual basis. Revenue is generally considered to be measurable if it has the ability to provide a reasonable estimate of actual cash flow. Expenditures, for the most part, are recorded on an accrual basis because they are measurable when they are incurred.

In Proprietary Funds (Enterprise and Internal Service), the accrual basis of accounting and budgeting is used. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred.

Adoption Process

The annual budget process is based on Florida statutory requirements in F.S. Chapter 129, entitled "County Annual Budget”. The Chapter establishes a system for controlling finances of county boards of commissioners throughout the state and sets the framework for the budgetary process. In addition, Generally Accepted Accounting Principles (GAAP) for state and local governments as set forth by the Governmental Accounting Standards Board (GASB) provide professional standards that guide public financial management and reporting.

During March, the Office of Management and Budget, in conjunction with input received from the Departments/Divisions, prepares revenue forecasts and updates revenue projections for the budget year. Departments, State and Outside Agencies, and Constitutional Officers then complete their budget proposals. After review by the Office of Management and Budget, these are presented to the Budget Review Committee. The Office of Management and Budget prepares the County Administrator's Proposed Budget for presentation to the Board of County Commissioners in June-July.

The Board holds budget Work Sessions during July to review the County Administrator's Proposed Budget and provides direction in developing the Proposed Budget which is made available to the public and forms the basis for the First Public Hearing in September. The First Public Hearing is an opportunity for the public to comment and make recommendations, and any changes directed by the Board are incorporated into the Tentative Final budget which forms the basis for the Second Public Hearing in September.

The Second Public Hearing is another opportunity for the public to participate and comment. During the Second Public Hearing, the board adopts a resolution stating the millage rates to be levied and adopts the final Budget. The Adopted Budget becomes effective October 1.

Amendments to the Adopted Budget

If during the fiscal year the Adopted Budget requires amending, this is accomplished with either an Administrative Budget Amendment or Supplemental Budget Amendment.

Supplemental Budget Amendment (SBA) – an amendment to the Adopted Budget requiring Board approval. Board approval is obtained by writing a recommendation to the board to adopt the SBA. The Board Chairman is authorized to sign the SBA. This type of amendment is necessary, regardless of dollar amount, when the change:

• Changes total appropriations of a fund;
• Authorizes the use of Reserves for Contingency in the General Fund or Transportation Trust Fund; or
• Increases total personnel services appropriated within a department.

Administrative Budget Amendment (ABA) – an amendment to the Adopted Budget which moves expense budgets among object codes within a department, regardless of dollar amount. Generally, this amendment does not require Board approval and is signed/approved by the Department Director, Budget Officer and County Administrator. The exception to not requiring board approval is when the amendment increases total personnel services appropriated within a department.

Key Dates in the Adoption Process

Budget Calendar:

• County Administrator prepares the Proposed Budget, February 28 - July 1.
• Property Appraiser submits the Certification of Property Values to the Board of County Commissioners, July 1. (F.S. 193.023 (1); 200.065 (11)
• County Administrator submits the Proposed Budget to the Board of County Commissioners, July 8.
• Board of County Commissioners notifies the Property Appraiser of the Proposed Millage rates, July 10. (F.S.200.065 (2)(b)
• Property Appraiser prepares the annual millage notice to the public, August 1.
• Property Appraiser notifies/mails property owners the proposed millage rates, August 8. (F.S. 200.069)
• First Public Hearing to adopt the Proposed/Tentative Budget and associated millage rates, September 9 (F.S. 200.065(2)(c)
• Public advertisement of the Second Public Hearing Notice and Budget Summary, September 19. (F.S. 129.03 (3)(b), 200.065 (2)(d) & (3)(1)
• Second Public Hearing to adopt the Final Budget and millage rates, September 23. (F.S.200.065 (4)
• Adoption of the Final Budget and millage rates, September 23.
• Certify the Adopted millage and budget to the Property Appraiser, Tax Collector, and Department of Revenue, September 26. (F.S. 200.065 (4)
• Beginning of the new fiscal year, October 1.
• Property Appraiser prepares the tax roll for billing, notifies the Board of final adjusted tax roll (DR-422).
• Board adjusts and/or certifies rates back to the Property Appraiser, October.
• Tax Collector prepares and mails the annual property tax bills, October/November.