Review Tuesday June 17 th 2014 Christopher M Quinn MACC CPA CFE CGFO CGMA Finance Director Lina Williams Finance amp Budget Analyst Budget Preparation Timeline January First Quarter Review ID: 562385
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Slide1
Revenue Source
Review
Tuesday, June 17th 2014
Christopher M. Quinn
, MACC, CPA, CFE,
CGFO, CGMA
Finance
Director
Lina Williams
Finance & Budget AnalystSlide2
Budget Preparation Timeline
JanuaryFirst Quarter Review February
Financial AuditMarchPresentation of Annual Progress Report and Citizen Survey ResultsRevise 10 Year Infrastructure PlanApril
Presentation
of the Year to Date Budget
Second Quarter Review
Budget Input Begins for DepartmentsMayAnnual Update of the Strategic Action PlanFund Accounting PresentationLong Term Financial Planning PresentationJuneRevenue Source PresentationProperty Tax PresentationSlide3
Budget Preparation Timeline
JulyGeneral Fund Budget Workshop
Adopt Proposed Millage RateProprietary Funds Budget WorkshopThird Quarter ReviewAugustSpecial Revenue & Capital Fund Budget Workshop
Final Proposed Budget Presentation
September
Public Hearing to Tentatively Adopt Millage Rate & Budget
Public Hearing to Adopt Final Millage Rate & BudgetSlide4
Overview
Revenue ClassificationsTotal City RevenuesCurrent Tax RevenuesRevenue DiversificationTentative Budget CalendarSlide5
Revenue Classifications
TaxesPermits, Fees and Special AssessmentsIntergovernmental RevenueCharges for ServicesJudgments, Fines and ForfeitsMiscellaneous RevenuesOther SourcesSlide6
Total City Revenues
Fiscal Year 2014Slide7
Taxes
Ad Valorem (Property) TaxLocal Option Fuel TaxCurrently $.07 per gallonInsurance Premium TaxVolunteer Firefighters’ PensionDiscretionary Sales SurtaxesLocal Government Infrastructure Surtax (expired 12/2012)Small County SurtaxCommunications Services Tax
5.22% (sales tax)Local Business TaxPublic Service Taxes(Not in use)ElectricityWaterNatural GasPropaneSlide8
Permits, Fees and Special Assessments
Franchise FeesSolid WasteNatural GasUtility (not in use)Engineering PermitsImpact FeesWater and WastewaterTransportationParksFireSchool (remitted to Flagler County Schools)Special Assessments
Old Kings RoadCode NuisanceSlide9
Intergovernmental Revenue
GrantsState Revenue SharingLocal Government Half-Cent Sales Tax ProgramCounty Business Tax ReceiptsAlcoholic Beverage License taxSlide10
Charges for Services
Utility FeesWater and SewerSolid WasteStormwaterAnnual Fire InspectionsBuilding Permits & Inspections FeesState Road MaintenanceRecreation Fees
Planning FeesSlide11
Judgments, Fines and Forfeits
Traffic CitationsRed Light Camera ViolationsLocal Ordinance ViolationsParking TicketsCode FinesAnimal ControlSlide12
Other Revenue Sources
Inter-fund TransfersPayment-In-Lieu-of-Taxes (PILOT)Tax Increment for the CRADebt ProceedsMiscellaneousSlide13
Annual Evaluation of Funding SourcesSlide14
Current Tax Revenues
(Non-property tax)Small County SurtaxReplaced Infrastructure Surtax in 2013Local Option Fuel Tax7 cents currently in use, 5 cents still available State Revenue Sharing(a) 73.37%(b) 26.63½ Cent Sales Tax
Communications Services TaxSlide15
Small County Surtax
Description: Levied at a rate of .5 percent of the 7% sales tax pursuant to an ordinance enacted by Flagler County.Control: Flagler CountyDistribution Formula: State formula
Restrictions: Flagler County Ordinance # 2012-08Current Use: Currently being allocated to the Capital Projects Fund Projects include:
Long Creek Nature Preserve
Holland Park Improvements/Renovations
Community Center Renovations Slide16
Small County Surtax
Replaced the Local Government Infrastructure Surtax Dec. 2012
Local Government Infrastructure Surtax
Small County Surtax effective Jan. 2013Slide17
Local Option Fuel Tax
Description: County governments are authorized to levy a tax of 1 to 6 cents upon every net gallon of motor fuel sold within a county. Flagler County currently levies 6 cents. Control: Flagler CountyDistribution Formula: Inter-local agreement based on road milesRestrictions: Must be used for transportation expenditures
Current Use: Currently being allocated to the Streets Improvement Fund Projects include:Bridge Rehab
Parkway Beautification
Street Resurfacing Slide18
Local Option Fuel TaxSlide19
State Revenue Sharing
Description: This state fund receives:1.3409% of State sales and use tax collections12.5% of the state alternative fuel user decal fee collectionsNet collections from the one-cent municipal fuel taxControl: State of Florida
Distribution Formula: State formulaRestrictions: 73.37% - Municipal wide programs or for property tax relief
26.63% - Transportation
Current Use:
General Fund – Help mitigate the need for property taxesStreets Improvement FundSlide20
State Revenue SharingSlide21
½ Cent Sales Tax
Description: This program distributes a portion of the state 6% sales taxControl: State of FloridaDistribution Formula: State formulaRestrictions:
Can be used for municipal wide programs or for property tax reliefCurrent Use: Currently used in the General Fund to help mitigate property taxesSlide22
½ Cent Sales TaxSlide23
Communications Services Tax
Description: The communications services tax applies to telecommunications, video, direct-to-home satellite and related services at a rate of 5.22%. Control: State of Florida & City CouncilDistribution Formula: Based on service addressRestrictions: May be used for any public
purposeCurrent Use: Currently used in the General Fund to help mitigate property taxesSlide24
Communications Services TaxSlide25
Franchise Fees
Special AssessmentsPublic Service (Utility) TaxRevenue Diversification OptionsSlide26
Electric:
Added to FPL BillAmount charged and use of revenue is at the sole discretion of City Council6% Electric Franchise Fee (industry standard) = $3.8 million annuallyBurden: Property Taxes: Residential 83% Commercial 17% Franchise Fee: Residential 74% Commercial 26%
Revenue Diversification OptionsFranchise Fees
Current fees in use:
Natural Gas
Solid Waste
Available for future use:ElectricWaterSlide27
Fire Assessment:
Used to offset costs of Fire Department related to fire protectionPotential fee determined by rate studyAssessment must be shown to benefit the property not an individualAssessment amount is determined by City CouncilAssessment appears as a separate line on property tax billRevenue Diversification OptionsSpecial AssessmentsSlide28
Types of Public Service Taxes include electric, natural/propane gas & water
State allows up to 10%City Council sets the rateUse is determined by City CouncilTax is added to utility billsBased on FPL Revenue estimates: 10% Public Service Tax = approximately $4 million/annuallyRevenue Diversification Options
Public Service (Utility) TaxSlide29
Ormond Beach
Electric 10% Daytona BeachElectric (Formula)Water (Formula)DelandElectric 10%Water 10%
St. AugustineElectric 8%Flagler BeachElectric 10%Water 10
%
Bunnell
Electric 10%
Water 10%Approximately 81% of Florida Municipalities have at least 1 Public Service TaxNeighboring Cities with a Water and/or Electric Public Service Tax:This information was provided by the Florida Department of Revenue.Revenue Diversification Options
Public Service (Utility) TaxSlide30
Revenue diversification provides:
Higher level of control of revenue sources by City CouncilDecrease in reliance on property taxes10 mil State capMore equitable distribution of tax burdenCommercial vs. ResidentialVisitors vs. ResidentsHigher level of equity for services provided versus services paid for Revenue Diversification SummarySlide31
Tentative Budget Schedule
June24th
- Property Tax Primer PresentationJuly8th
- Budget
Workshop - General Fund
15th – Business Meeting - Adopt Proposed Millage Rate29th - Budget Workshop - Proprietary FundsAugust12th Budget Workshop – Special Revenue Funds & Capital Funds 26th - Final Proposed Budget PresentationSeptember
3rd - Public Hearing to tentatively adopt millage rate and budget17
th - Final Public Hearing to adopt final millage and budgetSlide32
Questions & Discussion