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

utilities, medical insurance, and service levels, infrastructure improvements, and expenses such as increases in property values worker' s compensation. Although the millage rate was maintained this year, vehicle and six new enabled the City to expand certain programs: advanced life support ( rapid response EMT's/ Paramedics), police take- home vehicle policy ( include patrol officers), parks and recreation Beal Parkway), and acquisition of the softball complex/fairgrounds), neighborhood improvements ( workforce housing. taxes. Fort Walton Beach' s millage rate Municipalities are permitted to levy up to 10 mills for ad valorem levels. ranks fifth lowest compared to municipalities of similar size and service Millage Rate Comparison 10 8 6 4 2 o Winter Haven Fort Walton Casselberry Winter Park Panama City Oakland Park Edgewater Venice Jacksonville New Symma Tarpon Beach Beach Spri ngs Beach to which ad valorem taxes are relied Per CaDita Ad Valorem Tax - This indicator measures the extent The City has maintained a 4. 97 millage rate for the past upon to fund new and existing programs, tax levied by the City thirteen years ( since FY 1993- 94). Over the past ten years, the per capita property to 127. 6% increase in the County has increased 84. 4% due to increases in property values, compared a to municipalities of similar size and service levels, the City' s per capita property tax levy. When compared is the fourth lowest. 5 of 28 FY 2006-07 Budget Policy Workshop Per Capita Tax Comparison 600 500 400 300 200 100 0 Winter Park Jacksonville Oakland Park Venice New symma Casselberry Edgewater Panama City Fort Walton Winter Haven Tarpon Beach Beach Beach Springs created flat tax rate for all Communication Services Tax - Effective in FY 2001- 02, this tax a over another. communication services so that no one type of service had a competitive price advantage s 32. 1 % increase. Staff anticipates This revenue category remained relatively flat until last year' approximately $ 2, 200,000 will be received in FY 2006- 07. a 6% rate on gross Franchise Fees &. Utilitv Taxes - The City' s franchise fee agreements provide contract These revenue electric and gas sales. A $ 1. 50 per ton sanitation host fee is also collected per sources have averaged a combined 8.4% annual increase over the past four years and this growth trend 1, 695,000 in FY is anticipated to continue. Franchise fees are anticipated to generate approximately $ at the rate of 10%. This 2006- 07. Utility taxes are levied against electric, gas, and water revenues the past four and this growth trend is revenue source has averaged a 4. 7% annual increase years over 1, 560, 000 in FY 2006- 07. anticipated to continue. Utility taxes are anticipated generate approximately $15 to revenue growth and utility taxes fixed for 10 to years, Since the collection rates for franchise fees are in these categories is limited to energy price increases. State shared revenues are generally allocated via a population- based State Shared Revenues - contribute to minimal distribution. Legislative mandates and the City' s limited population growth revenues. Half-cent sales tax increases from year to year in state shared and intergovernmental 1, 750, 000 in FY 2006-07, are derived from net sales distributions, anticipated to generate approximately $ revenue sharing revenue for local tax revenue and generate the largest amount of municipal to generate approximately $ 850, 000 in FY 2006- governments, Municipal revenue sharing, anticipated 12. 5% of state alternative fuel user decal 07, is funded by 1. 0715% of sales and use tax collections, fuel tax. collections, and the net collections from the one- cent municipal all fines on criminal Effective October 1, 2005, the Okaloosa County Clerk of Courts began retaining traffic, misdemeanor, and felony cases originating in municipalities, The funds must be deposited into the a constitutional revision of Florida state Fine & Forfeiture Fund to fund the court system as required by civil traffic infractions, but is Statute Ch. 142. 01. This change does not affect fines collected on 100, 000. anticipated to reduce annual revenues approximately $ between Okaloosa County and Local ODtion Gas Tax - As the result of a ten- year interlocal agreement its municipalities re-written in FY 2002- 03, Fort Walton Beach' s local option gas tax proceeds were raised to $ 0. 02 per gallon. While our reduced approximately $ 50, 000 annually even though the tax was revenue decreased as the result of this re- written agreement, all other municipalities in the county enjoy revenue growth. Local option gas tax is anticipated to generate approximately $ 690,000 in FY 2006-07. cost of regulating an activity or providing a User Fees - The City levies certain user fees to fund the related to the service received. User service or facility. Unlike taxes, these service charges are directly fees include occupational licenses, building permits and plan reviews, parks and recreation programs, well as contracts with the Florida Department of senior center, library, museum, and cemetery, as These revenues fluctuate from year-to- year and Transportation for lighting and right- of-way maintenance. of these services are difficult to predict and budget Fee schedule increases based on the cost providing account for much of the revenue increase. 6 of 28 FY 2006- 07 Budget Policy Workshop increase over the past five years and this growth Charges for Services have averaged a 4. 1 % annual to generate approximately $ 900,000 trend is anticipated to continue. This revenue source is anticipated in FY 2006- 07. Indicative of our city' s built-out nature, license and permit revenues remained relatively flat until last year' s 96. 9% increase. minimum unreserved/ undesignated fund Reserve Level - The City continues the policy of maintaining a balance of 20% of annual General Fund expenditures_ Current practice sets a goal of having either 50% minimum net assets for enterprise funds - Utilities, cash or six months of operating revenue as Sanitation, and Golf. These reserve levels are considered prudent for meeting unanticipated expenditure Fluctuations in fund balance and net assets requirements, a major revenue shortfall, or an emergency. due to capital improvement projects. Unreserved/ undesignated funds and from