TOWN OF ORANGE PARK

PRESENTATION OF REVENUES AND

FORECASTING MODEL

June 25, 2020

MAJOR FUNDS & REVENUES

1) GENERAL FUND (Fund 001)• Has a variety of Major Revenue Sources

2) GAS TAX FUND (Fund 302)• Local Option Fuel Tax – 6 cent

• Local Option Fuel Tax – 5 cent

3) SALES TAX CAPITAL PROJECTS FUND (Fund 306)• Local Government Infrastructure Surtax

4) WATER & SEWER FUND (Fund 401)• Water & Sewer Rates

5) STORMWATER FUND (Fund 425)• Stormwater Assessments

General Fund RevenuesMajor GF Revenues

16-17 17-18 18-19 19-20

Actual Actual Actual Budget

Total $9,181,792 $9,627,535 $10,104,320 $10,820,783

GENERAL FUND – MAJOR REVENUE SOURCES

1) Ad Valorem Taxes (Property Tax)• Current millage rate is 5.8781• Preliminary Taxable Property Value of Property for FY 2020-2021 is $612,572,000• Property Values increased over last year by 3.3%• Property values are increasing at 5% per year average over the last five years• Averaging $3,028,648 over the last five years

2) Utility Service Tax (Public Service Tax on Electricity)• Began in March 2015• The Town is charging the maximum rate of 10%• Revenues are trending upward• Averaging $841,169 over the last four years

3) Communications Service Tax• Tax on retail sales of communications (telecommunications, cable television, & direct-to-home satellite

service)• Revenues are trending downward• Averaging $581,388 over the past five years

4) Municipal Revenue Sharing Program (Florida Revenue Sharing Act of 1972)• Created Revenue Sharing Trust Fund for Municipalities

GENERAL FUND – MAJOR REVENUE SOURCES cont’d

• Trust fund receives 1.3653% of all net sales and use tax collections• Receives net collections from one-cent Municipal Fuel Tax• Based on distribution formula with current distributions being:

Orange Park – 51% Green Cove Springs – 35% Keystone Heights – 8% Penny Farms – 6%

• Averaging $346,266 over the last five years

5) Other State Revenue Sharing• Includes the following:

Mobile Home License TaxAlcoholic Beverage LicenseCardroom TaxOther Transportation – MotorFirefighter Supplemental CompensationFDOT Street Agreements

• Averaging $289,314 over the last five years

6) Local Government Half-Cent Sales Tax Program• Largest amount of revenue for municipalities among the State shared revenue sources

GENERAL FUND – MAJOR REVENUE SOURCES cont’d

• The program’s primary purpose is to provide relief from ad valorem and utility taxes in addition to providing counties and municipalities with revenues for local programs.

• Averaging $463,512 over the last five years

7) Franchise Fees (Electricity/Gas/Solid Waste)• Includes electric service, providers of bottled natural gas and propane, and the collection of

solid waste• Averaging $876,170 over the last five years

8) Charges for ServicesNew in 2019-2020• Ambulance Fees – 19-20 FY budget = $775,750• School Resource Officers – 19-20 FY Budget = $201,801• Solid Waste (formerly in Sanitation fund) – 19-20 FY Budget = $539,000

9) Red Light Cameras• Went into effect in May 2013• Averaging $716,679 over the last four years• Increased 53.3% over the last four years• Future of legislation is unknown in Florida

GAS TAX FUND – MAJOR REVENUE SOURCES

1) 6 Cents Local Option Fuel Tax• A 1 to 6 cent levy on every net gallon of motor fuel sold in the County• Proceeds are used to fund specified transportation expenditures• Averaging $298,291 over the last five years• For 2020 the Town’s distribution went from 6.1% to 7.9% per letter from Clay County

dated September 23, 2019

2) 5 Cent Local Option Fuel Tax• A 1 to 5 cent levy on every net gallon of motor fuel sold in the County• Proceeds are used to for transportation expenses including those needed to meet

the requirements of an approved capital improvements element of an adopted local government comprehensive plan

• Implemented March 2018• Averaging $435,273 per year over the last 27 months• For 2020 the Town’s distribution stayed at 12.2% (Same as the previous fiscal year)

GAS TAX FUND HISTORICAL DATA 2009-2010 THROUGH 2019-2020

* 2019-2020 is estimated at 69% due to the effects of the COVID-19 pandemic

FIVE YEAR PROJECTION FOR GAS TAX FUND

2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

Current

Budget Estimate Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year

Gas Tax Fund 302

Beginning Balance 126,753 126,753 (251,286) 13,436 458 97,180 94,402

Revenues

- Gas Tax $300,972 $207,671 $300,972 $300,972 $300,972 $300,972 $300,972

- Additional 5 Cent Gas Tax $520,750 $359,318 $520,750 $520,750 $520,750 $520,750 $520,750

Total Funds Available $948,475 $693,742 $570,436 $835,158 $822,180 $918,902 $916,124

Expenditures $945,028 $945,028 $557,000 $834,700 $725,000 $824,500 $820,000

Projected Fund Balance End of Year ($251,286) $13,436 $458 $97,180 $94,402 $96,124

Change In Fund Balance ($378,039) $264,722 ($12,978) $96,722 ($2,778) $1,722

Town of Orange Park

Five Year Projected Capital Program

Fiscal Years 2020-2021 Through 2024-2025

2019-20

SALES TAX FUND – MAJOR REVENUE SOURCES

Local Government Infrastructure Surtax• Additional percent from .5 to 1 percent levied by County in addition to the

State rate of 6 percent on taxable sales.• Clay County is presently at 1 percent• Averaging $1,577,063 over the last five years• Formula based on population percentage to the whole County and includes:

Unincorporated Clay County, Orange Park, Green Cove Springs, Keystone Heights, & Penny Farms

• 2019 Populations ReportUnincorporated Clay County – 196,607Orange Park – 8,668Green Cove Springs – 7,841Keystone Heights – 1,357Penny Farms - 773

SALES TAX FUND HISTORICAL DATA 2009-2010 THROUGH 2019-2020

* 2019-2020 is estimated at 84% due to the effects of the COVID-19 pandemic

FIVE YEAR PROJECTION FOR SALES TAX FUND

2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

Current

Budget Estimate Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year

Infrastructure Sales Tax Fund 306

Beginning Balance $760,885 $760,885 ($180,508) $431,494 $402,744 $403,744 $191,744

Revenues

- Local Option Sales Tax $1,663,002 $1,385,780 $1,663,002 $1,128,250 $950,000 $950,000 $950,000

- Interest 14,000 12,000 12,000 12,000 12,000 12,000 12,000

- Contributions 0 0 0 0 0 0 0

- Transfers In - General Fund 0 0 0 0 0 0 0

- Transfers In - Sanitation Fund 0 0 0 0 0 0 0

- Grants 784,593 784,593 0 0 0 0 0

Total Funds Available $3,222,480 $2,943,257 $1,494,494 $1,571,744 $1,364,744 $1,365,744 $1,153,744

Expenditures $3,123,766 $3,123,766 $1,063,000 $1,169,000 $961,000 $1,174,000 $1,154,000

Transfers to Other Funds $0 $0 $0 $0 $0 $0 $0

Projected Fund Balance End of Year ($180,508) $431,494 $402,744 $403,744 $191,744 ($256)

Change In Fund Balance ($941,393) $612,002 ($28,750) $1,000 ($212,000) ($192,000)

Town of Orange Park

Five Year Projected Capital Program

Fiscal Years 2020-2021 Through 2024-2025

2019-20

PROPRIETARY FUNDS

1) Water & Sewer (Fund 401)• Water and Sewer Rates are based on the report titled Water and Sewer Rate

Study – Final Report by Stantec delivered May 16, 2019.

• 2019-2020 Projected Revenues Based on Current RatesWater – Budget = $2,177,268 Projected = $2,055,716 Shortfall = $121,552 (5.6%)

Sewer – Budget = $2,567,191 Projected = $2,435,650 Shortfall = $131,541 (5.2%)

2) Stormwater (Fund 425)• New proprietary fund was created on December 4, 2018

• Current Stormwater Assessments are based on the Utility Implementation Study done by Jones Edmunds and Associates

• 2019-2020 Budget = $392,630

• 2019-2020 Projected = $395,153

2019-2020 WATER & SEWER REVENUE

EMERGENCY MEDICAL SERVICES REVENUE

Post Month

Gross

Charges

Gross

Receipts

Collection

Adjustments

Net

Receipts

Adjustments/

Write-Offs

Aging

Balance Transports

October 2019 $82,484.00 $0.00 $0.00 $0.00 $0.00 $82,484.00 122

November 2019 $69,612.00 $29,120.97 $0.00 $29,120.97 $20,594.11 $102,380.92 104

December 2019 $92,089.20 $33,872.71 $0.00 $33,872.71 $21,165.45 $139,431.96 135

January 2020 $64,230.80 $27,578.81 $0.00 $27,578.81 $15,459.62 $160,624.33 96

February 2020 $81,010.40 $22,828.84 $0.00 $22,828.84 $21,641.68 $197,164.21 119

March 2020 $134,899.60 $48,034.84 $0.00 $48,034.84 $47,364.16 $236,664.81 197

April 2020 $60,159.20 $34,668.66 $0.00 $34,668.66 $34,668.87 $227,486.48 89

May 2020 $65,926.00 $24,496.68 $0.00 $24,496.68 $22,392.77 $246,523.03 97

Total $650,411.20 $220,601.51 $0.00 $220,601.51 $183,286.66 959

Avg / Month $81,301.40 $27,575.19 $0.00

Avg / Transport $678.22 $230.03

RED LIGHT CAMERA HISTORICAL DATA 2014-2015 THROUGH 2019-2020

• 53.3% increase in revenue in last 4 years

• Revenue expected to be $51k under budget for 2019-2020 due to COVID-19 pandemic

• Average net proceeds for the last three audited fiscal years is $441,435

• $441,435 equals approximately 0.76 Mills

• Current millage is 5.8781

• Millage needed to make up RLC shortfall if the program goes away is 6.6300

FORECASTING MODEL

QUESTIONS AND ANSWERS