the 16-line statement budget form 4-b

The 16-Line StatementBudget Form 4-b

Dan Jones, Assistant Budget Division Director

April 2009

“Committed to a fair and equitable property tax system for Hoosier taxpayers.” 2

Form 4-b Budget Estimate

• Financial Estimate• Commonly referred to as the “16-Line

Statement”• Covers the financial activity over 18

months• Includes the estimated property tax

rate and levy• A separate Form 4-b must be

completed for each fund



BUDGET ESTIMATE- FINANCIAL STATEMENT- PROPOSED TAX RATE

TAXING UNIT __________________________________________ COUNTY ___________________________________ FUND ________________________________________________ NET ASSESSED VALUATION__________________

(This form is to be prepared for each fund that requires either a tax rate or an appropriation)(NOT TO BE PUBLISHED)

FUNDS REQUIRED FOR EXPENSES TO DECEMBER 31st OF INCOMING YEAR

AMOUNT USED TO COMPUTE PUBLISHED BUDGET APPROPRIATING

BODYTAX ADJUSTMENT

BOARD

CONTROL BOARD AND DLGF FINAL

ACTION

1. Total budget estimate for incoming year

2. Necessary expenditures, July 1 to December 31 of present year, to be made from appropriation unexpended

3. Additional appropriation necessary to be made July 1 to December 31 of present year

4. Outstanding temporary loans

a. To be paid not included in lines 2 or 3

b. Not repaid by December 31 of present year

5. TOTAL FUNDS required (add lines 1,2,3,4a and 4b)

FUNDS ON HAND TO BE RECEIVED FROM SOURCES OTHER THAN PROPOSED TAX LEVY:

6. Actual cash balance, June 30 of present year (including cash investments)

7. Taxes to be collected, present year (December settlement)

8. Miscellaneous revenue to be received July 1 of present year to December 31 of incoming year

(Schedule on File): a. Total Column A Budget Form 2 b. Total Column B Budget Form 2

9. TOTAL FUNDS (Add lines 6, 7, 8a and 8b)10. Net amount to be raised for expenses to December 31 of incoming year (deduct line 9 from 5)11. Operating balance ( not in excess of expense January 1 to June 30, less miscellaneous revenue for same period)12. Amount to be raised by tax levy (add lines 10 and 11)13. Property Tax Replacement Credit from Local Option Tax14. NET AMOUNT TO BE RAISED BY TAX LEVY (deduct line 13 from line 12)15. Levy Excess Fund applied to current budget XXXXXXXXXXXXXX XXXXXXXXXXXXX XXXXXXXXXXXX16. Net amount to be raised17. Net Tax Rate on each one hundred dollars of taxable property


• Column 1 is the budget as advertised by the unit

• Column 2 is the budget as adopted by the fiscal body

• Column 3 is the budget as revised by the tax adjustment board (can also be used for the non-binding recommendation)

• Column 4 is the DLGF certified budget



• Line 1 – Total budget for the fund for the ensuing year (total from Form 1 and Form 4 or 4A)

• Line 2 – The balance of appropriations remaining to be spent from July 1st through December 31th of the current year• (Approved budget + additional appropriations –actual

expense)



• Line 3 – Additional appropriations anticipated in the second half of the current year

• Line 4A – Temporary loans to be repaid by 12/31/09

• Line 4B – Temporary loans to be repaid by 6/30/2010



IMPORTANT:

Temporary loans not repaid by the end of the current year require:

1. Emergency Declaration

2. Signed Resolution or Ordinance

3. Reported to DLGF and State Board of Accounts



• Line 5 – Total of lines 1 through 4B. This gives the total estimated expense over the 18 month period.

• Line 6 – Actual cash balances as of June 30. Includes cash and investments.

• Line 7 – Property taxes estimated to be received in the second half of the current year. (Auditor’s Certificate)



• Line 8A – Revenues to be collected July 1 through Dec. 31 of the current year. Information is from Form 2, Column A.

• Line 8B – Revenues to be collected in ensuing year. (From Form 2 Column B.)• TIP – Be realistic but be conservative.



• Line 9 – Total of Lines 6, 7, 8A and 8B• This is the total source of funding over the 18

month cycle, except for next years property taxes

• Line 10 – Line 5 minus Line 9• Total expense minus total revenues without

property taxes – indicates the amount of property taxes needed



• Line 11 – Operating Balance• Amount need to maintain sufficient

cash flow. Ideally, this is 6 months operating expense minus miscellaneous revenues

• Line 12 – Sum of Lines 10 and 11



• Line 13 – CAGIT Counties Only• This is the Replacement Credit

required for property tax levy reduction in CAGIT adopting counties

• Line 13B is to be used for counties that adopted LOIT’s for the property tax levy freeze



• Line 14 – Line 12 minus Line 13• (Property tax levy minus the levy

replacement form CAGIT or LOIT)• This is not to exceed the maximum

levy• In non-adopting counties line 14 will

equal line 12



• Line 15 – Levy Excess• DO NOT USE!!! Always leave blank.

Make the DLGF fill in this line.• Levy excess are property taxes

collected in excess of 100% of certified levy

• The “excess” will become credit to apply to next years levy. That is, it will be a temporary property tax reduction for next year.



• Line 16 – Amount of property tax levy needed to fund next years budget. This amount is to be advertised on Form 3

• Line 17 – Tax Rate on each $100 of assessed value

Levy = Tax Rate X ( AV/$100)



• Tax Rate Calculation Example• Assume the assessed value is $123,456,789

and assume the required levy is $654,321

STEP 1: Divide AV by $100 =

123,456,789/100 = 1,234,567

STEP 2: Divide the required levy ($654,321) by Step 1 result:

$654,321/$1,234.567 = 0.5300

Tax Rate needed is 0.5300 per $100 of assessed valuation



TIP #1: Compare the completed Form 4-b with last years form. The numbers for the property tax levy and rate should be similar to last years.

TIP #2: Watch that decimal point! A misplaced decimal point can be a disaster!



TIP # 3: Remember to advertise a budget, rate and levy for any new debt that has been issued.

TIP # 4. Remember to complete a separate form 4-b for each fund.

The best way to get help with the Form 4-b is with your DLGF field representative at the budget workshops in July.


Library Budget Forms

• Budget Form 5• Budget submission Letter and

Certificate• Certifies all funds and the approved

property tax rates for each fund• Form is signed by the Board members

and indicates how the voted on the budget



Contact Us

Dan Jones, Asst. Director 317-232-0651 [email protected]

Tafrica Harewood, Additional 317-234-5592 [email protected] & CPF

Mary Jane Michalak 317-232-3785 [email protected]

Field Staff Locations 317-232-3773

Agency Phone: 317-232-3773

Fax: 317-232-8779

Web: www.in.gov/dlgf/

Email: [email protected]

mailto:[email protected]

mailto:[email protected]

http://www.in.gov/dlgf/

the 16-line statement budget form 4-b

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