Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 108
Budget-In-Brief → buDgeT oVerView
Taxes
Ad Valorem Taxes - General Fund
Ad Valorem taxes are budgeted at $11,367,297 (General Fund Revenue, page 160) 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 2024 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 pro-growth 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 $2,165,600 (General Fund Revenue, page 160) and utility service taxes
are budgeted at $3,191,444 (General Fund Revenue, page 160). 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 $566,444 (General Fund Revenue, page 160). 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, 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 $48,000 (General Fund Revenue, page
160), 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 $1,128,900, based on historical trends and projects anticipated for the next year.
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City of Eustis, Florida
Adopted Budget
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