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

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 0.39% over the previous fiscal year. $3.0 Utility taxes are contractually levied against 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 3.6%. $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 2016-17 2017-18 2018-19 Budget Budget taxes are anticipated to generate $2.9M, or 5.9%, 2019-20 2020-21 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, $1.1M is budgeted, which is an 3.9% decrease when compared to FY 2019-20. 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 $4.00 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- $2.25 Millions $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 $3.3M, or $0.75 $0.50 6.5%, 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 2016-17 2017-18 2018-19 Budget Budget rebounded as the economy has improved, is 2019-20 2020-21 estimated to decline slightly by 3.2%. Municipal Revenue Sharing – This is funded by 1.3409% of sales and use tax collections, 12.5% 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 $817K, or 1.7%, of total revenues. Because of the uncertainty of the COVID-19 Pandemic, EDR anticipates this revenue source to dramatically decline. 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 levies the full 6 cents and the City receives 9.7956%. The third is 1 to 5 cents, of which the County City of Fort Walton Beach, FL 39 Revenues currently levies 3 cents. The City’s local option fuel tax proceeds for FY 2020-21 are budgeted at $582K and $261K, respectfully. This revenue source is anticipated to decrease on an average of 10.4%. Interfund Transfers – Interfund transfers represent $2.1M, or 4.2%, of total revenues. The Debt Service Fund receives $1.1M from the General Fund for principal and interest payments. The Beal Memorial Cemetery Fund receives $41K 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 $226K from the Stormwater Fund (6% of water & sewer and stormwater fees) as a franchise/right-of-way access fee and $515K 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 2020-21 Budgeted Expenditures $49,575,666 Capital Outlay/ Debt Service , Contingencies , $466,386 , Improvement , $4,516,140 , 9.1% 0.9% $5,206,391 , 10.5% Reserves , $960,398 , 1.9% Culture & Recreation , Interfund Transfers , $5,347,397 , 10.8% $1,038,100 , 2.1% General Government , Economic Environment $3,402,974 , 6.9% , $1,294,617 , 2.6% Transportation , $838,756 , 1.7% Public Safety , $12,897,462 , 26.0% Physical Environment , $13,607,045 , 27.4% Physical Environment – This category comprises $13.6M, or 27.4% of total expenses and $14 includes cemetery operations and the following $12 enterprise activities: water, sewer, stormwater, recycling, and garbage. These operations are $10 self-sustaining since cemetery revenues exceed $8 expenses and enterprise activities are funded by Millions $6 user fees rather than general revenues such as $4 property taxes. $2 Public Safety – This category includes police, $0 fire, code enforcement, and building inspection Cemetery Water & Sewer Garbage Stormwater services and totals $12.8M, or 26%, of total 2016-17 2017-18 2018-19 Budget 2019-20 Budget 2020-21 expenses. Public Safety increases were due to personnel changes in FY2020-21. $6.10 Recreation