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HomeMy WebLinkAboutHandout_Workshop_Ex 02_08/14/2007~~eneral,~und-Revenues ,. REVENUE DESCRIPTION GENERAL FUND REVENUES TAXES Taxes are compulsory contributions exacted by a government for public purposes. This revenue consists of all taxes imposed by the Village whether the Village collects the taxes itself or relies on another government to act as its collection agent Ad Valorem Taxes Ad Valorem (at value) taxes represent a levy on assessed real & personal property. The taxable value is the assessed value less homestead & other exemptions, if applicable. The County Property Appraiser delivers the Certified Taxable Value (the total assessed value of the non- exempt property) on or before July 1st. Prior to that date, the Village is provided with estimates of the value. The total assessed value changes continuously after July 1st due to assessed valuation appeals & other adjustments such as discounts for prompt payment. Because of the potential for reductions in ad valorem collections, local governments budget ad valorem revenues at 95% of the calculated amount. This year presented some challenges related to changes made by the Florida Legislature that impacted not only the way the Village reported the proposed millage rate but also requirements the Village had to meet in order to assess different levels of millage rates. This year included changes in an existing mandatory reporting form (DR-420) and introduced a new form that included a calculation for the Village's growth rate that had to be factored into how the Village's current millage was determined. Counties and municipalities must use the compound annual growth rate published by the Department of Revenue. They are responsible for determining their percentage reduction below the rolled-back rate based on the growth percentage. We believe that the Village has met all the new requirements. A mill is a taxation unit equal to one dollar of tax obligation for every $1,000 of assessed valuation of property. The 2007-2008 Budget is based on a millage rate of 4.7671 which represents the rolled-back rate less 9% percentage reduction based on the growth percentage. OTHER TAXES Public Service Taxes (Utility Taxes) As provided by Florida Statutes Section 166.231, a municipality may levy a tax on the purchase of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled, and water service.... the tax shall be levied only upon purchases within the municipality and shall not exceed 10 percent of the payments received by the seller of the taxable item from the purchaser for the purchase of such service. The Village of Tequesta has levied a 9 percent tax on electric, fuel oil kerosene, gas (natural, manufactured and liquefied petroleum) and water. The budget for the following taxes, was developed based upon a 7 year trend analysis, discussions with the providers when possible and an awareness of current economic conditions. ~~~ a C~eneral~und Revenues Electric Utility Taxes Florida Power & Light (FP&L) is the sole provider of electricity within the Village of Tequesta. Payments are submitted directly to the Village.. Gas Utility Taxes This service is provided by various suppliers. The taxes collected are submitted directly to the Village. Water Utility Taxes The Village of Tequesta Water Utility provides water service to the Village of Tequesta. Taxes are collected by the Water Utility and paid monthly to the Village's General Fund. Unified Communications Service Tax The Unified Communications Service Tax represents taxes on telecommunications, cable, direct-to-home satellite & related services. Fees are collected by the State & remitted to local government. The Village receives this revenue directly from the State. The budget is based on state estimates. INTRA-GOVERNMENTAL These revenues result from business activities conducted between two different Village entities. The General fund receives the following intrrgovernmental revenues. 1. Administrative Management fees from the; a. Water Utility b. Stormwater Utility c. Refuse and Recycling INTERGOVERNMENTAL Revenues received from other governments to support general activities. Taxes imposed by another government and distributed to the Village are treated as an intergovernmental transfer. Local Government 1/2 Cent Sales Tax Created in 1982, this tax generates the largest amount of revenue for local governments among the state-shared revenue sources. It distributes net sales tax revenue to municipalities based on a strict allocation formula. The budget is based on estimates provided by the State. State Revenue Sharing State revenue sharing is provided to local municipalities by the State based on a predetermined allocation methodology. Taxes on cigarettes, intangibles and sales are the main sources of state revenue shared with local governments that can be used with few or no restrictions. The Revenue Sharing Act of 1972 established formulas for sharing General ~und~ Revenues cigarette and intangibles taxes with municipalities and counties. The budget is based on estimates provided by the State. Alcoholic Beverage License Fees A portion of the annual State license tax levied on manufacturers, distributors, vendors, brokers, sales agents, & importers of alcoholic beverages & collected within a municipality is shared with the local government in the form of Alcohol License revenues. The budget is based on the estimated amount collected for the prior year. Local Option Gas Tax -1-5 cents This tax is levied on motor & diesel fuel & is distributed to counties & cities. The tax can be used for transportation purposes but unlike the one-to-six cent tax, it is restricted to use for new roads & reconstruction or resurfacing of existing paved roads as opposed to routine maintenance. This budget is based on estimates provided by the State Local Option Gas Tax - 6 cents This tax (6 cents) is levied on motor & diesel fuel & is distributed to counties & cities. Distribution of the fuel tax is made based on a formula that includes weighted population ratios & center-lane miles. The tax can be used for transportation-related operations including roadway &right-of--way maintenance, drainage, street lighting, traffic signs & signals & debt service for transportation capital projects. The budget is based on estimates provided by the State. FRANCHISE FEES Franchise Fees are charged to service providers for an exclusive or non-exclusive right to operate within the municipal boundaries of the Village. Franchise fees are recorded in the IBR fund #101 unti12009 when the 1994 Bonds, with which these revenues were pledged against, are paid down. After 2009, franchise fees will be recorded directly into General fund #001. Currently, the difference between pledged revenues in the IBR fund #001 and the amount required to pay debt service is transferred to the General fund #001. Currently a 9 percent charge is levied on a percentage of gross receipts. The budget for the following franchise fees, was developed based upon a 7-year trend analysis, discussions with the providers when possible and an awareness of current economic conditions. Electric Franchise Fees The largest of the franchise fees is the electric franchise fee collected from Florida Power & Light. Refuse and Recycling Franchise Fees Franchise fees for refuse and recycling are collected from Nichols Sanitation/Waste Management. General~und Revenues LICENSES & PERMITS Revenues derived from the sale of business licenses and permits allowing a business firm to function and non-business licenses and permits that allow the performance of a specific activity. Local Business Tax (formerly Occupation License) Effective January 1, 2007, Florida Statutes Chapter 205.022, changes the name of the Occupational License Tax to the "Local Business Tax". "Local business tax" means the fees charged and the method by which a local governing authority grants the privilege of engaging in or managing any business, profession, or occupation within its jurisdiction. It does not mean any fees or licenses paid to any board, commission, or officer for permits, registration, examination, or inspection. The County requires all businesses to obtain a countywide occupational license & a municipal license in order to operate a business. Countywide license fees are shared with municipalities based on a formula that includes population. The Village also collects a license fee. Local Business Tax revenues are recorded in the IBR fund #101 until 2009 when the Bonds with which these revenues were pledged against have been paid. After 2009, revenue received from local business tax fees will be recorded directly into General fund #001. Community Development develops budget projections using current information on existing business and projected fees. INTERGOVERNMENTAL REVENUE Local Government 1/2 Cent Sales Tax Created in 1982, this tax generates the largest amount of revenue for local governments among the state-shared revenue sources. It distributes net sales tax revenue to municipalities based on a strict allocation formula. The budget is based on estimates provided by the State. State Revenue Sharing State revenue sharing is provided to local municipalities by the State based on a predetermined allocation methodology. The budget is based on estimates provided by the State. Local Option Gas Tax - 3 cents This tax is levied on motor & diesel fuel & is distributed to counties & cities. The tax can be used for transportation purposes but unlike the one-to-six cent tax, it is restricted to use for new roads & reconstruction or resurfacing of existing paved roads as opposed to routine maintenance. The budget is based on estimates provided by the State. C~eneralguncl Revenues Local Option Gas Tax - 6 cents This tax (6 cents) is levied on motor & diesel fuel & is distributed to counties & cities. Distribution of the fuel tax is made based on a formula that includes weighted population ratios & center-lane miles. The tax can be used for transportation-related operations including roadway &right-of--way maintenance, drainage, street lighting, traffic signs & signals & debt service for transportation capital projects. The budget is based on estimates provided by the State. Alcoholic Beverage Fees A portion of the annual State license tax levied on manufacturers, distributors, vendors, brokers, sales agents, & importers of alcoholic beverages & collected within a municipality is shared with the local government in the form of Alcohol License revenues. The budget is based on the estimated amount collected for the prior year. FINES & FORFEITURES Revenues received from penalties imposed for the commission of unlawful offenses, violation of lawful administrative rules and regulations, neglect of official duties and forfeits of deposits held as performance guarantees. Fines & Forfeitures -Police The Village is entitled to a portion of fines imposed for traffic & other violations & forfeitures of impounded property from criminal arrests. The budget is based on the estimated amount collected for the prior year. Fines -Code Enforcement Collected from the fines imposed for code related violations. The budget is based on the estimated amount collected for the prior year. CHARGES FOR SERVICES This category comprises charges imposed for providing current services, user fees or for the sale of products in connection with general government activities. They are designed to defray the cost of current services that are of a specific benefit to a particular recipient. Amounts designated as charges for services are reported on a gross basis without offsetting the cost to produce or buy the commodities or services sold. Charges for services are recorded in the following functions; General Government Includes Administration, Clerk's Office, Human Resource, Finance & Legal Public Safety Includes Building, Zoning & Code Compliance, Police & Fire Transportation Public Works Leisure Services Recreation CeneraC~uncf Revenues UNRESTRICTED INVESTMENT EARNINGS Earnings on deposits and investments. GENERAL MISCELLANEOUS This item includes rents and royalties, sales of and compensation for loss of assets, refunds of expenditures, contributions & donations, impact fees, fines & forfeitures and other miscellaneous revenues. The largest source of revenue recorded in general miscellaneous are: Lease of the cell tower to Sprint, T-Mobile and Nextel. The leases have five year terms and revenues of $112,680 are projected for 2008 Fines & forfeitures (parking tickets, Court fines, Code enforcement fines, etc.) Revenue from this source is projected at $38,500 is from the lease of the cell tower. The lease terms are five years and revenues of $112,680 are projected to be received from Sprint, T-Mobile and Nextel in the 2008 budget year.