Fort Walton Beach Council agenda — 04-19-05 — reading text

Assessed Value 1 ,400 the millage rate is maintained and the City' s revenues do not increase in proportion to 1, 200 assessed value increases. In addition, 4% of 1, 000 residential parcels ( 284 parcels) claim the 800 20,000 senior citizen exemption adopted by ~ the City in 1999. Over the past ten years, the ~ 600 City' s total assessed value has increased 400 60. 8%, but taxable assessed value has only 200 increased 52. 2%. These exemptions 0 contribute to the limited growth in the City' s ad 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 II Taxable II Exempt valorem revenues. Adoption of the roll- back rate would yield the same amount of revenue as the current year rate is not excluding new construction. The ad valorem revenue produced by the 4. 97 millage maintenance projected to provide sufficient revenue for fixed cost increases for operations and associated with current services, nor fund new or enhanced services or capital projects. The ad valorem growth trend, while steady, has been outpaced by the rise in costs for improved City service levels, infrastructure improvements, and expenses such as utilities, medical insurance, 6 FY 2005-06 Budget Policy Workshop and worker' s compensation. For example, while ad valorem proceeds have increased $ 1. 70 million over the past ten years, medical insurance and worker' s compensation costs alone have a combined increase of $ 1. 03 million during the same time period. Municipalities are permitted to levy up to 10 mills for ad valorem taxes. Fort Walton Beach' s millage rate ranks fourth lowest compared to municipalities of similar size and service levels. Millage Rate Comparison 10 8 6.9900 6 4 2 o Venice Sebastian Tarpon Fort Walton Panama Casselberry Winter Park New Oakland Jacksonville Edgewater Winter Springs Beach City Symrna Park Beach Haven Beach User Fees - The City levies certain user fees to fund the cost of regulating an activity or providing a service or facility. Unlike taxes, these service charges are directly related to the service received. User fees comprise 8% or 400,000 1, 245, 000 of General Fund revenues and 350,000 include occupational licenses, building permits 300, 000 250,000 and plan reviews, parks and recreation 200, 000 programs, senior center, library, museum, and 150,000 cemetery, as well as contracts with the Florida 100, 50,000 Department of Transportation for lighting and 0 right- of- way maintenance. 2000 2001 2002 2003 2004 II Building III Other These revenues fluctuate from year-to-year BBusiness and are difficult to predict and budget. Indicative of our city' s built- out nature, over the Charges for Services 1, 000,000 past five years business license revenues have 800,000 remained flat and building permit revenues 600,000 have increased only as a result of redevelopment. Over the past five years, 400,000 200,000 licenses and permits and charges for services have averaged annual increases of 3. 2% and 0 10.4%, respectively. Fee schedule increases 2000 2001 2002 2003 2004 based on the cost of providing these services II Parks & Ree III Senior Center III Library II Museum III Cemetery II DOT Maint. Ill'!Other account for much of the revenue increase. Per Florida Statute 205. 0535, municipalities are permitted to increase occupational license fees no more than 5% every two years. This fee has not been adjusted since 2001. While a 5% adjustment is only anticipated to generate an additional $ 8, 000, the increase will help ensure rates are recouping a reasonable portion of the cost of license administration. Fund Balance - The City continues the policy of maintaining a minimum fund balance of 20% of annual General Fund expenditures. This is considered a prudent reserve level for meeting unanticipated expenditure requirements, a major revenue shortfall, or an emergency. Fund balance fluctuates from year- to- year due to capital improvement projects. 7 FY 2005-06 Budget Policy Workshop Unreserved/ undesignated funds are monies not already earmarked for specific use and are available to continue service levels if revenue falls short or if unanticipated expenditures occur. The General Fund budget currently meets the General Fund - Projected minimum fund balance policy with an estimated 22 20 undesignated fund balance of $ 5, 280, 000. 18 TheCity is fiscally sound as reported by our 16 independent auditors. However, minimal 14 revenue growth and escalating expenditures for 12 maintaining current service levels could erode 10 fund balance stability. Projected General Fund 2005-06 2006- 07 2007- 08 2008- 09 2009-10 scenarios indicate significant reduction or iJ Revenues I::: II Expenditures depletion of available fund balance over the next five years. One- time, non- recurring revenue such as land sales and reduced capital improvement outlays have averted fund balance decline in past years. Utilitv Rates - The utilities enterprise fund includes water storage, treatment and 8 distribution, as well as sanitary sewer collection 6 and treatment. A stormwater division was c: 4 added in FY 2004~05. These operations are financed primarily by a charge based on usage; 2 therefore, this fund has greater rate setting 0 flexibility so that desired service delivery levels 2005- 06 2006-07 2007-08 2008- 09 2009- 10 can be maintained. Council recently adopted a iJ Revenues I::: II Expenses multi- year fee schedule to ensure rates are commensurate with the cost of providing utility services, including system improvements. Sanitation Rates - The sanitation enterprise Sanitation Fund - Projected fund includes collection of curbside residential 5 garbage, recycling, and yard waste as well as 4 commercial collection. Rates for residential and 3 g commercial garbage have not increased since 2 1995. In fact, they were reduced by $ 1. 00 per 1 month for residential customers in May 2001 resulting from decreased tipping fees at the SFI 0 2005-06 2006- 07 2007- 08 2008- 09 2009-10 transfer station. Recycling rates remain m Revenues II Expenses unchanged since inception over ten years ago. Over the last several years, tonnage sent to the landfill has increased and fuel and oil costs have increased - resulting in increased costs to collect garbage, yard waste, recyclables, and white goods. Golf Fund - Projected Golf Rates - The golf enterprise fund includes 4 operation of two golf courses and a driving $ 3 range. In March 2004 a multi~year rate plan "' c: was implemented to gradually increase fees to ~ $ 2 levels more commensurate with surrounding 1 golf courses and to return operations to self- 0 sufficiency. 2008- 09 2009- 10 2005- 06 2006- 07 2007-08 Graphs on this page