Fort Walton Beach Council agenda — 04-08-06 Special — reading text

Ad Valorem Millage by Motion development of the Fiscal Year 2006-07 October 2006 Amend FY 2005-06 Budget operational budget and capital improvements program. Staff respectfully requests that City Council reach a consensus on the policy decisions presented in order to guide the FY 2006- 07 budget development process. Sfumafum Joyce A.Shanahan City Manager 2 of 28 FY 2006- 07 Budget Policy Workshop ECONOMIC INDICATORS NATIONAL ECONOMY Index Consumer Index Help Wanted Advertising Index the framework within which the City of National and local economic indicators are useful for evaluating the US Bureau of Labor Fort Walton Beach operates. The Consumer Price Index ( CPI) - prepared by Statistics and the most widely used gauge of inflation - is 3. 6% higher than a year ago. The Consumer Confidence Index - prepared by The Conference Board based on a representative sample of US The Help Wanted Index - also prepared by The households and - is nearing a four-year high. Conference Board and measuring job offerings in major newspapers across the country - is 4. 9% lower than a year ago. LOCAL ECONOMY Retail Sales Housing Affordability Unemployment Rate Sales - as reported by the Haas Our local economy by and large follows the nation9leconomy. Retail Center.for Business Research and Economic Development - are 15. 0% higher thanthepreviousiyear term interest rates and high energy prices. The affordability of housing - as reported despite rising short- over the prior year in, mainly due to a 24. 3% incre.ase in the by the Haas Center - has declined ta.6% The standard definition of 066) in the Fort Walton Beach area. medi.an price of a home ( now $ 251, house uses less than 30% of annual household income. housing affordapility is that the cost of buying a becausesupply is low due to damaged housing and Hurricanes have negatively affectedaffordability rebuild. Additional military p.ersonnel as a demand has increased due to workers moving to the area to will also strain housing supplies. Local result of the 2005 Base Realignment and Closure ( BRAC) is currently 2. 6%, a 25. 7% unemployment ~ ascomputed by the Agency for Workforce Innovation - demand for construction labor. decline from a year ago, attributable to the high 3 of 28 FY 2006- 07 Budget Policy Workshop REVENUES FY 2005- 06 Budgeted Revenues 33, 384,625 Business Sales Tax, Recreation & liCer6es & Municipal G reer6 Fees B 1ct;;J.P etmits , Revenue 1J.OOIo Utilities & etc. S haring, etc. sanitation Fees 12% 8.9% 29.8% Fines and F orefeitUreS Fund 0.9% Interest& Misc. B alarr:eJR et Revenues Eamira; 2.7% 3.8% has decreased 5.9%, while the County has Population - Over the past ten years, the City' s population 14. 3%. The population decrease seen in the year 2000 for both the City and seen its population grow is built- out and few property owners County is the result of census figure adjustments. As the City nearly however, is expected to experience a voluntarily annex, population growth is limited. The County, over the next several years. Many state significant population increase as a result of the 2005 BRAC revenue sharing formulas are population based, resulting in only marginal increases in intergovernmental City Population County Population 210 not increasing, our residents demandthatcurrentservice revel1ue~ for the City. While our population is levels and infrastructure be sustained or improved while enjoying the benefits of new program~ and stations, septic tank replacement, service. uch s~ asia DUI officer, Advanced Life Support ( ALS), pump- out park~ and recreation facilities, e- government, and neighborhood improvements. comprise 25% of General Fund revenues and 1 00% of CRA AdValorern Taxes - Ad valorem taxes ten Fund revenues. Taxable assessed value appreciation has averaged 6. 3% annually over.the past a rise in thernHla.ge(rate.. Future yearsal1d provides moderate increa~e~ in revenue without necessitating is in value will come primarily from redevelopment. Private inv.estment in. reQevelopQ1ent growth property show s future and City Council's policies to stimulate redevelopment continue to positive vital for theCity' results. EXEMPTIONS value of a citizen' s primary residence Florida' s homestead exemption limits the annual increase in taxable 4 of 28 FY 2006-07 Budget Policy Workshop the City' s revenues do not to 3% the Consumer Price Index, whichever is lower. Consequently, or increase in proportion to assessed value increases for homesteaded properties. Seventy-two percent homesteaded, claiming $ 124, 4 29, 093 in exemptions. 4, 985 parcels) of residential parcels are 268 claim additional $ 25, 000 senior citizen exemption adopted by Furthermore, four percent ( parcels) an in 1999, in an additional $ 6, 282,467 in exemptions, Combined, these exemptions the City resulting translate to about $ 650, 000 less revenue annually for the City. 2%, but taxable assessed value Over the past ten years, the City' s total assessed value has increased 90. The homestead and senior citizen exemptions contribute to the limited growth has only increased 73. 5%. in the City' s ad valorem revenues. Assessed Value Ad Valorem Revenue $ 1, 800 6 1, 500 5 $ 1, 200 4 $ c: 900 3 1E : 1E $ 600 2 300 1 $ 0 0 $ 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 II Taxable II Exempt the rise in costs for improved City The ad valorem growth trend, while steady, has been outpaced by