FY 2025 BUDGET BOOK - Flipbook - Page 100
generated (within statutory limitations) based on the gross taxable value of real and personal
property as certified by the County Property Appraiser. The proposed millage rate for FY 2024/25
is 7.5810.
Eustis is included in the Orlando Metropolitan Statistical Area, one of the fastest-growing areas 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 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, a 2%
annual growth assumption is used.
Franchise Fees, Telecommunication, and other Public Service Taxes - General Fund
Franchise fees are budgeted at $2,207,730 (General Fund Revenue, page 131) and utility service taxes
are budgeted at $3,382,499 (General Fund Revenue, page 131). 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 $600,000 (General Fund Revenue, page 131). 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 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
131), 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 $1,179,200, 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 $1,800,000 (General Fund
Revenue, page 131). 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 2024/25 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 $1,225,000. Intergovernmental Revenue is based on historical
trends and the current economic situation and are 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 $217,500 in the General Fund (General
Fund Revenue, page 131), The City attempts to secure grant funding to supplement its limited
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