FY 2026 Adopted Budget - Flipbook - Page 102
providers to the Florida Department of Revenue (State) which then distributes collections to local
governments with a one-month lag. Budgeting for franchise fees and utility service taxes is
calculated by reviewing historical trends along with any information on rate or customer base
changes. All franchise fees and utility service axes are based on a percentage of service cost.
Electricity is by far the biggest generator of utility tax and franchise fee revenue with
telecommunications coming in second. This revenue stream has remained unchanged from the year
and it is based primarily on utility rate changes. Due to current economic stagnation a 2% annual
growth assumption is used. Expansion of the customer base will be a nominal factor until the City
undergoes further boundary growth, infill development, and annexation in the coming years.
Licenses and Permits:
General Fund
Business license revenue is budgeted in the General Fund at $50,000 (General Fund Revenue, page
125), based on recent trends and anticipated business activity in the City. Annual renewals account
for the bulk of this revenue. Building and construction permits, now accounted for in a separate
Building Services Fund, are budgeted at $1,168,200, based on historical trends and projects
anticipated for the next year.
Intergovernmental Revenue: Grants, State and Local Shared Revenues, and Payments from
Other Local Units
General Fund
The budget for half-cent sales tax and municipal revenue sharing is based on estimates provided by
the State and is distributed by the State derived through calculations based on sales tax revenue and
population. Local Government Half-Cent Sales Tax is budgeted at $1,645,514 (General Fund
Revenue, page 125). It is distributed by the State based on equally weighted factors of adjusted
municipal population, derived municipal sales tax collections, and the City’s ability to raise revenue.
The FY 2025/26 Adopted Budget includes a slight increase in Half-Cent Sales Tax revenues due to
increases in the City’s sales of taxable items as the economy continues to grow. Revenue from State
Revenue Sharing is budgeted at $1,255,984. Intergovernmental Revenue is based on historical
trends and the current economic situation and is derived from mobile home license taxes, alcohol
beverage license taxes, county occupational licenses, payments in lieu of taxes (PILOT), among
other sources. Intergovernmental Revenues are budgeted at $177,200 in the General Fund (General
Fund Revenue, page 125), The City attempts to secure grant funding to supplement its limited
resources whenever possible. This revenue is unknown and is based on grant awards, therefore any
grants are budgeted upon grant award and acceptance. Total FY 2025/26 Intergovernmental
Revenues are budgeted at $3,084,698 (General Fund Revenue, page 125).
Charges for Services: Utility Charges for Services
General Fund, Stormwater Utility Fund and Water & Sewer Utility Revenue Fund
The General Fund’s Charges for Services is budgeted at $1,241,984 (General Fund Revenue, page
126), and includes lien searches, garbage billing, false fire alarm charges, and various library and
parks and recreation service charges.
Stormwater revenue is budgeted at $934,000 (Stormwater Revenue, page 260) and is based on
a rate of $6 per equivalent residential units per month and $12 per month for commercial locations.
Due to limited new development or land use changes, a minimal increase has been budgeted.
Charges for water, sewer, and reclaimed water service are budgeted using base charges combined
with a tiered rate based upon consumption. Together with connection fees for new accounts, these
charges are budgeted at $14,668,000 (Water & Wastewater Revenue, page 270). Given current
economic conditions, high inflation and financial insecurities, the City Commission authorized a rate
study to determine if the fees and rates charged generate enough revenue to fund operations,
maintenance, replacement, debt service, and capital improvements. In FY 2024/25 the City
Commission hired a rate consultant to conduct this study. Once the consultant has determined
sufficient, competitive rates the City will determine future rates to be set. The irrigation and
reclaimed water components of the revenue stream can fluctuate significantly based on seasonal wet
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