Fort Walton Beach — Fiscal Year 2020-21 Adopted_Budget — reading text

3,585,259 1,369,125 61.78% Debt Service Fund 990,703 1,008,360 1,260,466 1,104,543 1,076,579 (27,964) -2.53% Utilities Fund 10,031,847 11,130,019 10,806,425 11,264,818 11,619,083 354,265 3.14% Sanitation Fund 3,830,618 3,804,419 3,861,209 4,316,172 4,637,685 321,513 7.45% Stormwater Fund 681,541 975,867 829,134 1,013,608 1,040,981 27,373 2.70% Beal Memorial Fund** 33,341 13,376 15,168 65,422 91,422 26,000 39.74% Expenditures 38,218,434 41,270,928 48,028,031 47,231,660 49,575,666 2,344,005 4.96% ** not included on chart Expenditures by Category $50 $45 $40 $35 $30 Millions $25 $20 $15 $10 $5 $0 Actual Actual Actual Budget Budget 2016-17 2017-18 2018-19 2019-20 2020-21 General Government Public Safety Physical Environment Transportation Economic Environment Culture & Recreation Actual Actual Actual Budget Budget % 2016-17 2017-18 2018-19 2019-20 2020-21 $ Variance Variance General Government 3,228,767 3,062,560 3,377,241 4,077,060 3,402,974 (674,086) -16.53% Public Safety 9,913,344 10,584,430 10,157,745 12,069,352 12,897,462 828,110 6.86% Physical Environment 13,630,039 14,228,411 14,398,859 12,630,857 13,607,044 976,187 7.73% Transportation 890,762 762,058 824,349 801,279 838,756 37,477 4.68% Economic Environment 1,468,393 1,045,687 1,282,063 1,142,525 1,294,617 152,092 13.31% Culture & Recreation 4,170,787 4,477,927 4,685,690 5,185,935 5,347,396 161,461 3.11% Capital (net of Reclass) 1,598,285 4,847,756 11,556,291 4,273,628 5,206,391 932,763 21.83% Debt Service 1,523,638 1,518,360 1,724,638 4,573,045 4,516,140 (56,905) -1.24% Other Financing Uses 1,794,419 849,451 (272,901) 2,477,981 2,464,884 (13,097) -0.53% Expenditures 38,218,434 41,376,640 47,733,975 47,231,660 49,575,666 2,344,006 4.96% 36 Revenues FY 2020-21 Budgeted Revenues $49,575,666 Other Taxes , Ad Valorem Taxes , $6,877,608 , 13.9% $7,836,827 , 15.8% Reserves , $2,685,871 , 5.4% Licenses & Permits , $3,686,992 , 7.4% Interfund Transfers , $2,120,616 , 4.3% State Revenue Sharing & Other Intergov't , Interest & Other $4,479,255 , 9.0% Revenues , $2,276,492 , 4.6% Recreation, Golf, Fines and Forfeitures , Cemetery, Other Fees , $81,548 , 0.2% $2,943,811 , 5.9% Stormwater Fees , $1,023,980 , 2.1% Water & Sewer Fees , Garbage Fees , $4,034,133 , 8.1% $11,528,533 , 23.3% 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 $19.5M and are the largest source of revenue for the City at 39.4%. 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 $11.5M in revenues. A new five- $25 year rate study was adopted by City Council on $20 August 11, 2020 and will be 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. 2016-17 2017-18 2018-19 Budget 2019-20 Budget 2020-21 Garbage fees account for $4.0M in revenues. Recreation and other fees – recreation programs, park rentals, senior activities, the library, museums, golf, and cemetery sales – generate $2.9M 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 2020 gross taxable property value for operating purposes is $1.533 billion, an increase of $84 million, or 5.80%, from the 2019 final gross taxable property value of $1.449 billion. Ad valorem taxes levied by the City comprise $7.8M, or 15.8%, 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 $971K, or 5.2% 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 - - 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 General Fund CRA Fund Tax Revenue Millage As the chart above depicts, the City maintained its millage rate in FY 2009-10 and reduced personnel and other expenses in response to lower tax revenues as property values began to fall. The millage rate was increased in FY 2010-11 in order to maintain revenues, as the recession was in full swing. Further staffing and operational cuts were made in FY 2011-12 and FY 2012-13. 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. 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