Fort Walton Beach Council agenda — 8-11-14--proposed budget — reading text

duringduring FYFY 20082008 - - 0909 andand FYFY 20092009 - - 1010 andand reducedreduced personnelpersonnel andand expensesexpenses inin responseresponse toto thethe lowerlower taxtax revenuesrevenues asas propertyproperty valuesvalues beganbegan toto fall.fall. TheThe millagemillage raterate waswas increasedincreased inin FYFY 20102010 - - 1111 inin orderorder toto maintainmaintain revenuesrevenues asas propertyproperty valuesvalues continued continued toto fall.fall. FurtherFurther staffingstaffing andand operationaloperational cutscuts werewere mademade inin FYFY 20112011 - - 1212 andand FYFY 20122012 - - 1313 inin orderorder toto maintain maintain thethe millagemillage rate.rate. InIn FYFY 20132013 - - 1414 thethe CityCity simplysimply diddid notnot havehave roomroom toto" " dodo moremore withwith lessless ", ", andand raisedraised thethe millagemillage raterate toto 5.5. 7697,7697, anticipatinganticipating anan additionaladditional $ $ 1.1. 1M1M inin thethe GeneralGeneral FundFund andand $ $ 205K205K inin thethe CRACRA Fund.Fund. TheThe budgetbudget isis predicted predicted onon maintainingmaintaining aa millagemillage raterate ofof 5.5. 76977697 mills,mills, whichwhich generatesgenerates $ $ 141K141K moremore inin propertyproperty taxtax revenuerevenue thanthan thethe priorprior yearyear duedue toto increasesincreases inin propertyproperty values:values: OneOne millmill equalsequals $ $ 11 perper $ $ 1,1, 000000 ofof taxabletaxable propertyproperty value.value. FranchiseFranchise FeesFees & & UtilityUtility TaxesTaxes — — TheThe City'City' ss franchisefranchise feefee agreementsagreements provideprovide aa 6%6% raterate onon grossgross electricelectric andand gasgas salessales ofof utilityutility companiescompanies servingserving FortFort WaltonWalton Beach.Beach. AA$ $ 1.1. 8484 perper tonton sanitationsanitation hosthost feefee onon garbagegarbage collectedcollected outsideoutside thethe CityCity limitslimits andand broughtbrought toto thethe transfertransfer stationstation isis alsoalso collectedcollected perper contract.contract. FranchiseFranchise feesfees comprisecomprise $ $ 2.2. OM,OM, oror 5.5. 11%,%, ofof revenuesrevenues andand havehave inceasedinceased 11.11. 9% 9% thisthis yearyear afterafter severalseveral decliningdeclining S2.S2. 55 vv yearsyears InIn aa row.row. S2_S2_ 00 UtilityUtility taxestaxes areare contractually contractually leviedlevied againstagainst electric,electric, gas,gas, andand waterwater revenuesrevenues ofof locallocal utilityutility S1.S1. 55 companiescompanies atat thethe raterate ofof 10% 10% andand havehave averagedaveraged aa 1.1. 2% 2% annualannual increaseincrease overover thethe pastpast fivefive years.years. sl.sl. oo AA largelarge portionportion ofof electricelectric andand naturalnatural gasgas utilityutility 0.0. 55 billsbills isis exemptexempt sincesince thethe taxtax onon thethe fuelfuel chargecharge componentcomponent isis basedbased onon 19731973 fuelfuel pricesprices ( ( andand so.so. 00 thereforetherefore immaterialimmaterial toto aa greatgreat extent).extent). UtilityUtility FranchiseFranchise FeesFees UtilityUtility TaxesTaxes 0201002010 - - I1I1 9201192011 - - 1212 w2012w2012 - - 1313 9Budget9Budget BudgetBudget taxestaxes areare anticipatedanticipated toto generategenerate $ $ 2.2. 5M,5M, oror 20132013 - - 1414 20142014 - - 1515 CityCity ofof FortFort WaltonWalton Beach.Beach. FLFL Revenues 6. 8 %, 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. 3M is budgeted ( 3. 6% of total revenues). 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 state -shared 52. 00 revenue distribution, anticipated to generate 61. 75 approximately $ 1. 7M, or 4. 4 %, of total 51. 50 revenues, is derived from net 6% state sales tax SL25 revenue and is the largest source of revenue = 5100 sharing for local governments. The revenue 50. 75 estimate, also published by the Office of s0. 50 Economic and Demographic Research ( EDR), is so. 25 rebounding as the economy improves. _ SO 00 Communication Flalf-Cem $ ales Municipal Revenue Local Option Fuel Municipal Revenue Sharing — This is funded Semces Tax Tax Sharing. Tax by 1. 3409% of sales and use tax collections, 02010 -11 02011 - 12 - 2012 -13 aBudget 2013 -14 QBudget 2014 -15 12. 5% of state alternative fuel user decal collections, and the net collections from the one -cent municipal fuel tax. This revenue estimate is also published by the Office of Economic and Demographic Research ( EDR), and is budgeted at $ 717K, or 1. 9 %, of total revenues. EDR anticipates this revenue source to remain unchanged. 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