CC Minutes 07/09/2013 Budget Workshop

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The proposed budget has been prepared with the assumption that the millage rate continues at 5.45 mills and provides $5,541,244 in revenue. The levy would increase about $100,198 over that of FY 2013 made possible by the growth in overall taxable values. The value growth is known to be derived not just from passive appreciation but significantly from realized gains as new taxpayers invest in Casselberry. The increase is slightly above PCI of 1.69% and is needed to compensate for other revenue sources that have not shown growth during this recovery. MAJOR GENERAL FUN® REVENUE SOURCES: Taxes: Utility Taxes and Franchise Fees - $5.3M These taxes represent approximately 33% of the total revenue of the General Fund. Utility taxes are a public service tax assessed on electricity, water, and propane purchases in the City of Casselberry while franchise fees are assessed on a business, usually a public utility, in return for the right to operate inside the City limits. The City has granted franchise fees for electric, natural gas, and commercial solid waste. Franchise and utility fees related to electric sales account for the majority of these revenue sources. No growth is projected for this revenue source going into FY 2014. Intergovernmental Revenue (Sales and Gas Tax) - $2.6M The State allocates 1.3409% of sales and use tax revenues, net collections from the one -cent municipal fuel tax on motor fuel, and 12.5% of state alternative fuel user decal fee collections to fund the Municipal Revenue Sharing Program. Internal forecasts predict that $872,481 will be distributed to Casselberry. Another important revenue source is the one-half cent of sales tax that is routed back to Casselberry. Apportionment is driven by population growth and the City's population relative to other cities in the state. It is predicted to yield $1,582,512. Intergovernmental revenues make up 14% of the General Fund revenues. State forecasts have not been considered as of this writing. Charges for Services - $1.1M The greatest portion of these proceeds relate to Ambulance Fees (ALS). In the summer of 2011 the Commission approved a rate increase for this charge for service. A recent comparative analysis of ALS rates reveals that the City's new rates approximate the state median. The estimate used for the FY 2013 budget is $900,000. No growth is projected for this revenue source going into FY 2014. Interfund Transfers - $3.11VI Cost recovery transfers reflect strategic costs associated with the management, finance, and accounting services provided and paid by the General Fund for the benefit of City operations in other funds. These transfers include the following: Solid Waste Fund - $167,039 Stormwater Fund - $233,733, Building Safety Fund - $16,905 and the CRA - $133,200. Transfers related to the Water & Sewer System include a cost recovery transfer of $1,341,327, and a Utility Investment Transfer, $1,176,065, for the vested interest in the Utility System that the City maintains. The Utility Investment Transfer is calculated based on 7.5% of expected gross revenue.