FY 2023 ADOPTED BUDGET AS OF 9-22-22 - Flipbook - Page 78
Budget-In-Brief → Taxes
Taxes
Ad Valorem Taxes - General Fund
Ad Valorem taxes are budgeted at $10,213,339 , and are collected by the Lake County Tax
Collector’s office. Most of the tax collections occur from November through March. Tax bills are
mailed in November, becoming due March 31, with a sliding discount rate for early payment
beginning in November. Collections are calculated by multiplying the City’s adopted millage
rate for every $1,000 of taxable property value. The City’s millage rate is adopted by City
Commission each budget year, with the established rate predicated upon desired revenue
generated (within statutory limitations) based on the gross taxable value of the real and
personal property as certified by the County Property Appraiser. The proposed millage rate for
the fiscal year 2023 is 7.5810. Eustis is included in the Orlando Metropolitan Statistical Area, one
of the fastest-growing in the nation. Additionally, City leadership has instituted further
progrowth measures such as development incentives, impact fee waiver programs,
annexations, and business recruitment strategies; as well as marketing, community
engagement, livability, and tourism events. These factors have assisted in producing an
average historic annual taxable value increase for the last four years. The City will explore
any combination of efficiency/cost reduction measures, enhancements in other revenue
streams, and continued pro-growth policy to maintain long-term financial health.
Additionally, the City will continue to benefit from its exceptional climate, geography, small
town charm, and inclusion in a rapidly growing metro area, which will contribute to
healthy growth in the tax base for decades to come. Due to current City development,
and rapid population increase, 2% annual growth assumption is used.
Franchise Fees, Telecommunication, and other Public Service Taxes - General Fund
Franchise fees are budgeted at $1,938,000, and utility service taxes are budgeted at $3,117,776.
They are collected from customers by public service providers and remitted to the City monthly
except for the Communication Services Tax (CST), which was budgeted at $568,776. This is a tax on
the purchase of electricity, metered natural gas, and water service. The CST is remitted by telecom
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 is increased in comparison with the
previous year and it is based primarily on utility rate changes. Due to current economic stagnation,
1% 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 $67,000, 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 $1,800,000 based on historical trends and projects anticipated for next year.
76
City of Eustis, Florida
Adopted Annual Budget