Overview Christopher M Quinn MACC CPA CFE CGFO CGMA Finance Director Lina Williams Budget amp Financial Analyst Tuesday May 26 th 2015 Budget Preparation Timeline January First Quarter Review ID: 562384
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Slide1
Revenue Source
Overview
Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMAFinance DirectorLina WilliamsBudget & Financial Analyst
Tuesday, May 26
th
, 2015Slide2
Budget Preparation Timeline
January
First Quarter Review FebruaryFinancial AuditMarchPresentation of Annual Progress Report and Citizen Survey ResultsRevise 10 Year Infrastructure PlanAprilPresentation of the Year to Date BudgetSecond Quarter ReviewFY 2016 Budget Input Begins for DepartmentsMay
Annual Update of the Strategic Action Plan
Fund Accounting Presentation
Revenue Source Presentation
JuneLong Term Financial Planning PresentationProperty Tax PresentationSlide3
Budget Preparation Timeline
July
General Fund Budget WorkshopAdopt Maximum Millage RateProprietary Funds Budget WorkshopThird Quarter ReviewAugustSpecial Revenue & Capital Fund Budget WorkshopFinal Proposed Budget PresentationSeptemberPublic Hearing to Tentatively Adopt Millage Rate & BudgetPublic Hearing to Adopt Final Millage Rate & BudgetOctober – November
FY 2015 Year End Close-out
November – December
End of Year Review
Citizen’s SurveySlide4
Presentation Overview
Revenue Classifications
Total City RevenuesCurrent Tax RevenuesRevenue DiversificationTentative Budget CalendarSlide5
Revenue Classifications
Taxes
Permits, Fees and Special AssessmentsIntergovernmental RevenueCharges for ServicesJudgments, Fines and ForfeitsMiscellaneous RevenuesOther SourcesSlide6
Total City Revenues
FY 2015Slide7
Taxes
Ad Valorem (Property) Tax
Local Option Fuel TaxCurrently $.07 per gallonDiscretionary Sales SurtaxesSmall County SurtaxLocal Government Infrastructure Surtax (expired 12/2012)Communications Services Tax5.22% (sales tax)Local Business TaxPublic Service Taxes(Not in use)
Electricity
Water
Natural Gas
PropaneSlide8
Permits, Fees, Special Assessments
Franchise Fees
Solid WasteNatural GasUtility (not in use)Engineering PermitsSpecial AssessmentsOld Kings RoadCode NuisanceSlide9
Intergovernmental Revenue
Grants
State Revenue SharingLocal Government Half-Cent Sales Tax ProgramCounty Business Tax ReceiptsAlcoholic Beverage License taxInsurance Premium TaxVolunteer Firefighters’ PensionSlide10
Charges for Service
Utility Fees
Water and SewerSolid WasteStormwaterAnnual Fire InspectionsBuilding Permits & Inspections FeesState Road MaintenanceRecreation FeesPlanning Fees Impact FeesWater and WastewaterTransportationParksFireSchool (remitted to Flagler County Schools)Slide11
Judgements, Fines and Forfeitures
Traffic Citations
Red Light Camera ViolationsLocal Ordinance ViolationsParking TicketsCode FinesAnimal ControlSlide12
Other Revenue Source
Inter-fund Transfers
Payment-In-Lieu-of-Taxes (PILOT)Tax Increment for the CRADebt ProceedsMiscellaneousSlide13
Strategic Action PlanningSlide14
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) 75.14%(b) 24.86%½ Cent Sales TaxCommunications 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 default formulaRestrictions: Flagler County Ordinance # 2012-08Current Use: Currently being allocated to the Capital Projects Fund Projects include:Long Creek Nature PreserveHolland Park Improvements/RenovationsCommunity Center RenovationsSlide16
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 expendituresCurrent Use: Currently being allocated to the Streets Improvement Fund Projects include:Bridge RehabParkway BeautificationStreet Resurfacing Slide18
Local Option Fuel TaxSlide19
State Revenue Sharing
Description:
This state fund receives:1.3517 % of State sales and use tax collectionsNet collections from the one-cent municipal fuel taxControl: State of FloridaDistribution Formula: State default formulaRestrictions: 75.14% - Municipal wide programs or for property tax relief24.86% - TransportationCurrent Use:
General Fund – Help mitigate the need for property taxes
Streets 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 default 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 Slide23
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 Tax Slide25
General Fund Revenue Budget
FY 2015Slide26
Revenue Diversification Options
Franchise Fees
Special AssessmentsPublic Service (Utility) TaxSlide27
Revenue Diversification Options
Franchise Fees
Current fees in use:Natural GasSolid WasteAvailable for future use:ElectricWater
Electric:
Added to FPL
Bill
Amount 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%Slide28
Revenue Diversification Options
Special Assessments
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 billSlide29
Revenue Diversification Options
Public Service (Utility) Tax
Types of Public Service Taxes include electric, natural/propane gas & waterState 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/annuallySlide30
Revenue Diversification Options
Public Service (Utility) Tax
Approximately 81% of Florida Municipalities have at least 1 Public Service TaxNeighboring Cities with a Water and/or Electric Public Service Tax:
Ormond Beach
Electric 10%
Daytona Beach
Electric 10%
Deland
Electric 10%
Water 10%
St. Augustine
Electric 8%Flagler Beach
Electric 10%Water 10%BunnellElectric 10%
Water 10%
This information was provided by the Florida Department of Revenue.Slide31
Revenue Diversification Summary
Revenue diversification provides:
Higher level of control of revenue sources by City CouncilDecrease in reliance on property taxes10 mill State capMore equitable distribution of tax burdenCommercial vs. ResidentialVisitors vs. ResidentsHigher level of equity for services provided versus services paid forSlide32
What’s Next?
June
9th - Long Term Financial Planning Presentation 30th - Property Tax Primer PresentationJuly14
th
- Budget Workshop - General Fund
21st - Budget Workshop - Adopt Maximum Millage Rate28th - Budget Workshop - Proprietary FundsAugust11
th - Budget Workshop – Special Revenue Funds & Capital Funds 25th
- Final Proposed Budget PresentationSeptemberPublic Hearing to tentatively adopt millage rate and budgetFinal
Public Hearing to adopt final millage and budget