CC Minutes 04/25/2011 Workshop - Laserfiche WebLink

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FY 2011/12 Budget Assumptions HALF - CENT SALES TAX The State allocates 8.814% of net sales tax proceeds collected within Seminole County for distribution back to the municipalities and county based on a population weighted formula. Historically the municipalities of Seminole County experienced healthy increases in the half -cent sales tax revenue with an average annual growth of 6.23% prior to 2006/07. Given Florida's economic recession and outlook and its impact on consumer confidence there has been an annual decrease of about 4.8% since 2006/07 on a state municipality wide basis. Actual revenues received for the six month period October thru March 2011 reflect a slight decrease, less than 1%, under FY 2010 remittances. The forecast conservatively assumes annual growth at a 1% increase over actual remittances for FY 2010 for 2011/12 and annual growth of 1% in 2012/13, increasing to 2% for 2013/2014 and thereafter. FRANCHISE FEES A fee assessed on a business, usually a public utility, in return for the right to operate inside the city limits. The City of Casselberry has granted franchises for electric, natural gas and commercial solid waste. A 6% franchise fee is assessed on all electric sales in the City less any revenue attributable to the government. A solid waste franchise fee of 20% of gross revenue is remitted by various haulers of commercial solid waste in the City of Casselberry. An additional 6% of gross revenues related to propane sales is also remitted to the City. Franchise fees related to electric sales account for over 85% of this revenue source. These franchise fees are similar to the Utility Tax fees collected from Progress Energy and are collected on revenue from all retail electric sales less any governmental derived revenues. As in the utility tax there was an unexpected surge in FY 2009 due to a rate increase by Progress Energy. However, commensurate with the Florida FRANCHISE FEES (cont.) Public Service Commission approval, Progress Energy lowered their rates effective January 1, 2011. The forecast therefore, as in the Utility Tax, assumes a rate of 1% for the remaining forecast period. CHARGES FOR SERVICES Fees charged for services. These services are broken into three distinct categories according to type. The General Government fees relate to zoning fees and a city occupational license collection fee. Public Safety charges primarily relate to ambulance and finger printing fees. General Government Charges for Services have been declining since FY 2007/08 primarily related to a decrease in the collection of zoning fees. The forecast assumes no growth for FY 2011/12 with a conservative annual growth of 1% thereafter. Public Safety experienced a surge in ambulance fees FY 2009/10 due to an approved rate increase for ambulance fees in the summer of 2009. The forecast conservatively assumes flat growth for these fees from the 2009/10 actual remittances and a 1% increase thereafter. Culture/Recreation charges are tied directly to the various programs offered by the recreation department. Historically for the five years presented there has been an overall average decrease in these fees of almost 10%, the forecast assumes no growth for FY 2011/12 and mirrors the actual remittances for 2009/10 with an annual growth of 1% thereafter. City of Casselberry Page 4