Fort Walton Beach — Fiscal Year 2021-22 Adopted Budget — reading text

11,619,083 13,583,413 1,964,330 16.91% Sanitation Fund 3,804,419 3,861,209 4,316,172 4,637,685 4,513,696 (123,989) -2.67% Stormwater Fund 975,867 829,134 1,013,608 1,040,981 1,726,249 685,268 65.83% Beal Memorial Fund** 13,376 15,168 65,422 91,422 385,317 293,895 321.47% Expenditures 41,270,928 48,028,031 47,231,660 49,575,666 52,861,351 3,285,684 6.63% ** not included on chart Expenditures by Category $50 $45 $40 $35 $30 Millions $25 $20 $15 $10 $5 $0 Actual Actual Budget Budget Budget 2017-18 2018-19 2019-20 2020-21 2021-22 General Government Public Safety Physical Environment Transportation Economic Environment Culture & Recreation Actual Actual Budget Budget Budget % 2017-18 2018-19 2019-20 2020-21 2021-22 $ Variance Variance General Government 3,062,560 3,377,241 4,077,060 3,402,974 3,877,353 474,379 13.94% Public Safety 10,584,430 10,157,745 12,069,352 12,897,462 13,621,672 724,210 5.62% Physical Environment 14,228,411 14,398,859 12,630,857 13,607,044 14,262,119 655,075 4.81% Transportation 762,058 824,349 801,279 838,756 862,200 23,444 2.80% Economic Environment 1,045,687 1,282,063 1,142,525 1,294,617 1,258,453 (36,164) -2.79% Culture & Recreation 4,477,927 4,685,690 5,185,935 5,347,396 4,893,518 (453,878) -8.49% Capital (net of Reclass) 4,847,756 11,556,291 4,273,628 5,206,391 5,933,055 726,664 13.96% Debt Service 1,518,360 1,724,638 4,573,045 4,516,140 5,734,660 1,218,520 26.98% Other Financing Uses 849,451 (272,901) 2,477,981 2,464,884 2,418,322 (46,562) -1.89% Expenditures 41,376,640 47,733,975 47,231,660 49,575,666 52,861,351 3,285,685 6.63% 36 Revenues FY 2021-22 Budgeted Revenues $52,861,351 Other Taxes , Ad Valorem Taxes , $7,502,599 , 14.2% $8,288,608 , 15.7% Reserves , $3,900,386 , Licenses & Permits , 7.4% $3,735,921 , 7.1% Interfund Transfers , State Revenue Sharing $3,073,567 , 5.8% & Other Intergov't , $4,863,132 , 9.2% Interest & Other Revenues , $1,169,863 , 2.2% Recreation, Golf, Cemetery, Other Fees , Fines and Forfeitures , $3,145,442 , 6.0% $68,427 , 0.1% Stormwater Fees , Water & Sewer Fees , $1,027,413 , 1.9% Garbage Fees , $4,466,098 , 8.4% $11,619,895 , 22.0% Charges for Services (User Fees) – The City levies user fees to fund the cost of regulating an activity or providing a service or facility. Charges for services are anticipated to generate approximately $20.2M and are the largest source of revenue for the City at 38.3%. Unlike taxes, these charges are directly related to the service received. User fees include leisure services such as recreation programs, senior activities, library, museums, and golf; fire assessments; water and sewer service; garbage collection; and stormwater management. Fees are set by City Council based on the cost of providing these services, reviewed and adjusted annually as part of the budget process, and published in the Comprehensive Fee Schedule. Revenues are budgeted based on historical usage and/or number of customers, adjusted for current rates. $30 Water and sewer rates will generate approximately $11.6M in revenues. A new five- $25 year rate study was adopted by City Council on $20 August 11, 2020 and was implemented on Millions October 1, 2020 with the FY 2020-21 budget. The $15 study determines the required rates to generate $10 sufficient revenue to sustain renewal and replacement reserves and account for debt service $5 requirements and is updated on an annual basis to $0 account for real-time revenues, expenses, and Recreation Water & Sewer Garbage Stormwater/Other changes within the utility system. 2017-18 2018-19 2019-20 Budget 2020-21 Budget 2021-22 Garbage fees account for $4.4M in revenues. Recreation and other fees – recreation programs, park rentals, senior activities, the library, museums, golf, and cemetery sales – generate $3.1M in revenues. Stormwater user fees comprise $1.0M in revenues at a residential-equivalent unit of $5 per month. City of Fort Walton Beach, FL 37 Revenues Ad Valorem (Property) Taxes – Citywide, the 2021 gross taxable property value for operating purposes is $1.637 billion, an increase of $92 million, or 5.97%, from the 2020 final gross taxable property value of $1.544 billion. Ad valorem taxes levied by the City comprise $8.28M, or 15.7%, of total revenues. Property taxes primarily fund General Fund operations. However, property taxes paid by certain residents and businesses located in areas targeted for specific improvements to eliminate blight and improve infrastructure are allocated to the Community Redevelopment Agency (CRA) Fund. Property tax revenues are allocated to the CRA Fund based on the growth in assessed value from the base year (i.e. year of CRA designation). Funding from County property taxes comprises $1.019M, or 4.9% higher than the previous year. 1,800 9 1,600 8 Ad Valorem Taxes (millions) 1,400 7 Taxable Value (millions) 1,200 6 1,000 5 800 4 600 3 400 2 200 1 - - 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 General Fund CRA Fund Tax Revenue Millage In FY 2013-14, the City simply did not have room to “do more with less” and raised the millage rate to 5.7697 mills. In FY 2019-20 the City lowered to the rolled-back millage rate of 5.6395 mills. In FY 2020-21, the City once again lowered to the rolled-back millage rate of 5.3293 mills, which is the millage rate that the Proposed Budget is predicated on. The rolled-back millage rate for FY 2021-22 is 5.0844 mills. One mill equals $1 per $1,000 of taxable property value. City of Fort Walton Beach, FL 38 Revenues Franchise Fees & Utility Taxes – The City’s franchise fee agreements provide a 6% rate on gross electric and gas sales of utility companies serving Fort Walton Beach. A $1.84 per ton sanitation host fee on garbage collected outside the City limits and brought to the transfer station is also collected per contract. Franchise fees comprise $2.0M, or 4%, of revenues and have increased $3.5 0.97% over the previous fiscal year. $3.0 Utility taxes are contractually levied against