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

electric, gas, and water revenues of local utility $2.5 companies at the rate of 10%. Over the past five $2.0 years revenues have steadily increased. This year, Millions $1.5 these revenues are expected to increase by 4.0%. $1.0 A large portion of electric and natural gas utility bills is exempt since the tax on the fuel charge $0.5 component is based on 1973 fuel prices (and $0.0 Franchise Fees Utility Taxes therefore immaterial to a great extent). Utility 2017-18 2018-19 2019-20 Budget Budget taxes are anticipated to generate $2.9M, or 5.5%, 2020-21 2021-22 of total revenues. Communication Services Tax – This tax was created in FY 2001-02 as a flat tax rate for all communication services. The Department of Revenue collects the tax from vendors and remits the appropriate amounts to local jurisdictions. The Office of Economic and Demographic Research (EDR) provides revenue estimates for cities and counties. Based on information from EDR, $1.02M is budgeted, which is a 4.0% decrease when compared to FY 2020-21. This revenue stream has been declining as more consumers eliminate land lines and service providers bundle taxable services with non-taxable services, thereby eliminating payment of the tax. Half-Cent Sales Tax – This category includes a $4.25 $4.00 state-shared revenue distribution, derived from $3.75 $3.50 net 6% state sales tax revenue (which is the $3.25 $3.00 largest source of revenue sharing for local $2.75 $2.50 governments), as well as a half-cent county- Millions $2.25 $2.00 distributed surtax, implemented by voters in FY $1.75 $1.50 2018-19. Together, this revenue source is $1.25 $1.00 anticipated to generate approximately $4.1M, or $0.75 $0.50 7.8%, of total revenues. The revenue estimate, $0.25 $0.00 also published by the Office of Economic and Communication Services Tax Sales Tax Municipal Revenue Local Option Fuel Sharing Tax Demographic Research (EDR), which has 2017-18 2018-19 2019-20 Budget Budget rebounded as the economy has improved, is 2020-21 2021-22 estimated to increase 11%. Municipal Revenue Sharing – This is funded by 78.8% of sales and use tax collections, 21.2% of state alternative fuel user decal collections, and the net collections from the one-cent municipal fuel tax. This revenue estimate is published by the Office of Economic and Demographic Research (EDR), and is budgeted at $834K, or 1.5%, of total revenues. The revenue estimate, also published by the Office of Economic and Demographic Research (EDR), which has rebounded as the economy has improved, is estimated to increase 2%. Local Option Fuel Tax – These proceeds are allocated via a ten-year interlocal agreement between the county and municipalities based on transportation expenditures. Counties are authorized to levy up to 12 cents of local option fuel taxes in the form of three separate levies. The first is 1 cent; the City does not receive a portion of this. The second is 1 to 6 cents; the County City of Fort Walton Beach, FL 39 Revenues levies the full 6 cents and the City receives 9.7956%. The third is 1 to 5 cents, of which the County currently levies 3 cents. The City’s local option fuel tax proceeds for FY 2021-22 are budgeted at $606K and $272K, respectfully. This revenue source is anticipated to increase on an average of 4%. Interfund Transfers – Interfund transfers represent $3.0M, or 5.8%, of total revenues. The Debt Service Fund receives $1.6M from the General Fund for principal and interest payments. The Beal Memorial Cemetery Fund receives $35K from the General Fund (20% of cemetery lot sales) for investment for perpetual care of the cemetery once all lots are sold. The General Fund receives $1.3M from the Utilities Fund and $229K from the Stormwater Fund (6% of water & sewer and stormwater fees) as a franchise/right-of-way access fee and $524K from the Sanitation Fund to compensate for additional roadway wear & tear caused by heavy sanitation trucks. City of Fort Walton Beach, FL 40  Expenditures FY 2021-22 Budgeted Expenditures $52,861,351 Debt Service , Capital Outlay/ $5,734,660 , 10.8% Contingencies , $456,165 , Improvement , 0.9% $5,933,055 , 11.2% Reserves , $886,556 , 1.7% Interfund Transfers , Culture & Recreation , $1,075,601 , 2.0% $4,893,519 , 9.3% General Government , Economic Environment $3,877,353 , 7.3% , $1,258,453 , 2.4% Transportation , $862,200 , 1.6% Public Safety , $13,621,672 , 25.8% Physical Environment , $14,262,117 , 27.0% Physical Environment – This category comprises $14.2M, or 27.0% of total expenses and $16 includes cemetery operations and the following $14 enterprise activities: water, sewer, stormwater, $12 recycling, and solid waste. These operations are $10 self-sustaining since cemetery revenues normally exceed expenses and enterprise Millions $8 activities are funded by user fees rather than general revenues such as property taxes. $6 $4 $2 Public Safety – This category includes police, $0 fire, code enforcement, and building inspection Cemetery Water & Sewer Garbage Stormwater services and totals $13.6M, or 25.8%, of total 2017-18 2018-19 2019-20 Budget 2020-21 Budget 2021-22 expenses. Public Safety increases were due to personnel changes in FY 2021-22. $6.10 Recreation & Cultural Services – This $5.35 category equals $4.8M, or 9.3%, of total $4.60 expenses and includes parks & recreation $3.85