Section 5
Section 4
SECTION 4 REVENUES OVERALL REVENUES AND FINANCING SOURCES Chart 4-1 graphically shows the actual “Total Revenues” and “Total Revenues and Financing Sources” for fiscals years 1993 through 2003 and the estimated for the fiscal year 2004. The revenues shown will be based on the generally accepted accounting principles applicable to the fiscal year. Governmental Accounting Standards Board (GASB) 33 became effective for the fiscal year 2001, and GASB 34 changed the recognition of revenues for the governmental funds. Comparison with preGASB 33 and 34 fiscal years will be difficult when comparing the “Total Revenues” across the periods. However the Total Revenues and Financing Sources will be comparable. GASB Statement 33 reclassified the in lieu of payments from the utilities to the general government effective with FY 2002. In FY 2002, in FY 2003, and FY 2004, the in lieu of was placed in local taxes to facilitate the comparison for the period 1993 through 2004. Chart 4 -1 Revenues and Revenues and Other Financing Sources 1993-2004 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 1993
1994
1995
1996
Revenues
1997
1998
1999
2000
2001
2002
2003
2004
Revenues and Other Financing Sources
Examples of the changes of the annual increases in total revenues are listed in the Chart 4-2. It should be noted that GASB 33 and 34 modified the accounting treatment of certain revenues; therefore the accounting treatment from earlier fiscal years to the current and to the future fiscal years will not be consistent. Generally in the absence of a tax rate adjustment, revenues will increase. Increases are generally due to the appreciation of the values of the properties within the city, expansion of the national, state and local economies, population growth, and inflation.
4-1
Section 4
Chart 4 - 2 Summary of Estimated and Actual Total Revenues And Total Other Financing Sources (transfers in) For Fiscal Years 1993- 2004 (based on applicable generally accepted accounting principles)
Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Total Revenues 23,356,331 24,981,072 26,316,489 29,676,972 33,484,306 35,521,915 38,590,706 49,430,064 52,607,227 47,255,453 46,891,615 47,674,753
Annual Percent Change n/a 6.96% 5.35% 12.77% 12.83% 6.09% 8.64% 28.09% 6.43% -10.17% -0.77% 1.67%
Total Revenues And Financing Sources 29,479,468 30,244,717 26,316,489 29,695,722 34,965,556 35,521,915 44,741,286 49,749,557 52,757,215 50,617,954 50,468,945 51,646,482
Annual Percent Change n/a 2.60% -12.99% 12.84% 17.75% 1.59% 25.95% 11.19% 6.05% -4.05% -0.29% 2.33%
Chart 4-2 provides information about the annual percent changes in total revenues and total revenues and financing sources (transfers in from other funds of the city) for the period 1993 through 2004. The significant increase in revenues in FY 2000 was because the tax rate increased from $1.19 to $2.01. The sources of revenues of the general government are listed in Chart 4-3 for the fiscal years 2002, 2003, and 2004. BASIC REVENUE CATEGORIES
Collection Period Varies Varies Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun
Chart 4-3 Summary Schedule of Revenues FY 2002, FY 2003, and FY 2004 Revenue FY 2002 FY 2003 Cat. Description Actual Estimated LT Local Taxes 30,903,980 31,545,350 SR State Shared Revenues 11,095,492 10,976,900 FG Grants-Federal 655,098 490,210 PG Grants-Other 0 2,900 SG Grants-State 34,058 23,790 FS Fees for Services 1,359,581 1,302,110 FF Fines and Forfeitures 626,019 513,100 I Interest 277,997 187,500 M Miscellaneous 542,329 137,555 P Permits and Licenses 1,760,830 1,712,200 Total Revenues 47,255,384 46,891,615
Total Transfers In
FY 2004 Estimated 32,350,601 10,524,113 597,160 0 28,504 1,536,910 503,600 187,500 237,665 1,708,700 47,674,753
3,362,501 3,577,330 3,971,729
4-2
Section 4
Chart 4-3 Summary Schedule of Revenues FY 2002, FY 2003, and FY 2004 Collection Revenue FY 2002 FY 2003 FY 2004 Period Cat. Description Actual Estimated Estimated Total Revenues and Transfers In 50,617,885 50,468,945 51,646,482
Chart 4 - 4 Funding Sources In FY 2004
Chart 4 - 4 highlights the relative importance of each of these sources in the overall $51,646,482 revenue goals. Local taxes and state shared revenues will provide 83% of the total revenues and financing sources in FY 2004.
Permits and Miscellaneous Licenses Fines and 1% 3% Forfeitures 1% Fees for Services 3% Grants 1% State Shared Revenues 20%
Transfers In 8%
Local Taxes 63%
LOCAL TAXES $ 32,350,601 Local taxes are sensitive to the economy. The property tax base tends to expand at greater rates during periods of economic upswings. Local sales taxes and business taxes are based on the gross retail sales and gross receipts of covered businesses and are therefore very sensitive to the state and local economy (Chart 4-5). Chart 4 - 5 Local Taxes Revenue Description Sensitivity To Economy Property Taxes Somewhat In Lieu of Taxes No Local Sales Tax Yes Beer and Liquor Taxes Somewhat Business Tax Yes Hotel/Motel Tax Yes Local Taxes Overall – Yes
4-3
Section 4 Property taxes account for a significantly large portion of the local tax category. Property taxes are somewhat sensitive to the local economic conditions. In periods of turns in the economy and higher unemployment, the city can generally see the tax base expand at a less rapid rate and the rate of collections for property taxes in the year the taxes are levied to go down. In lieu of taxes under post GASB 34 principles consist of two in lieu of payments. These payments are (1) South Central Village’s in lieu of tax payment is established by contract.
Chart 4-6 FY 2004 Local Taxes $32,350,601 35,000,000
30,000,000
In Lieu of Tax Payments Business Taxes
25,000,000
Hotel/Motel Taxes 20,000,000
Sales Taxes 15,000,000
Business Taxes
10,000,000
Beer and Liquor Taxes Property Taxes
(2) Clarksville Housing 5,000,000 Authority's in lieu of tax payment is established by 0 formula. This revenue shows very little movement from year to year. The Authority provides low rental housing.
Local Taxes
In the pre-GASB 34 fiscal periods, the in lieu of taxes paid by the city’s utilities were included in this category. This change was effective with the fiscal year 2002. These sources of funds are no longer considered local taxes or revenues but are now classified as other financing sources. The city will continue to receive these revenues as permitted under state law, but we will no longer classify them as local taxes or revenues. This will skew the comparison of fiscal years prior to 2002. Two factors influence both local sales taxes and business taxes. These factors are: (1) inflation and (2) the increase in population not only in Clarksville- Montgomery County but also in the surrounding counties. These two taxes are percentages of covered retail sales or gross receipts of local businesses. Clarksville is becoming a commercial/retail area for the surrounding counties and benefits from persons living in surround counties shopping in Clarksville. This trend should continue. The one potential problem is the deployment of the 101st to Iraq. When we established this budget, we did not believe the deployment would have an immediate significant impact on FY 2004. It appeared that many dependents were choosing to remain in Clarksville during this deployment. If this trend continues the sales and business taxes should not be affected. Beer and liquor taxes will typically increase each year regardless of the economy. This is generally a consumption tax and like any other consumption tax, the level of revenue collections is responsive to inflation and the increase in population.
4-4
Section 4 The hotel/motel tax is influenced by the economy. As the national economy expands and contracts it is expected that this revenue will mirror the economy. Chart 4-7 presents for comparative purposes the fiscal years 2002, 2003 and 2004.
Collection Period Sep-Aug Sep-Aug Jul-Jun Sep-Aug Sep-Aug Jul-Jun Jul-Jun
Chart 4 - 7 City of Clarksville Summary Schedule of Revenues - Property Taxes Revenue FY 2002 FY 2003 Description Actual Estimated Property Taxes 19,305,399 19,613,100 Beer and Liquor Taxes 2,181,804 2,222,200 Business Taxes 1,356,368 1,253,200 Sales Taxes 7,847,258 8,191,900 Hotel/Motel Taxes 205,431 242,800 Business Taxes 350 5,200 In Lieu of Tax Payments 7,370 16,950 Local Taxes 30,903,980 31,545,350
FY 2004 Estimated 20,123,261 2,259,400 1,261,300 8,478,570 205,000 5,200 17,870 32,350,601
Chart 4-8 indicates that local taxes will trend upward from year to year. FY 2000 and FY 2001 are noticeably above the trend line. In these fiscal years the tax rate per $100 of assessed value was $2.01. In FY 2000 the tax rate was increased from $1.19 to $2.01. In FY 2002 the tax rate was reduced from $2.01 to $1.81. In FY 2004 the tax rate fell from $1.81 to $1.58 (certified tax rate).
Revenues
Chart 4-8 Actual and Estimated Local Taxes 1993-2004 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Year Local Taxes Pre-GASB 34
Local Taxes Post-GASB 34
Linear (Local Taxes Pre-GASB 34)
Linear (Local Taxes Post-GASB 34)
We have provided two data lines in Chart 4-8 for the local tax data spanning the fiscal years 1993 through 2004. The two lines are to demonstrate the impact that GASB statements can have when implemented. Statements 33 and 34 were far reaching. Statement 34 received the publicity, but statement 33 had a significant impact on the recognition of revenue. For many of the local taxes (sales taxes, beer and liquor taxes, and hotel motel taxes), the revenue recognition period was extended out
4-5
Section 4 to 60 days beyond the June 30 fiscal year end for simplicity to the end of August. The in lieu of tax payments received from the city’s utilities (gas department, water and sewer department, and the electric department) were reclassified from local taxes to “Financing Sources” at the fund level (they are now transfers in). The impact of these changes in accounting principles has been changes to the composition of the fund balance at June 30 from a less liquid state. See Section 7 for more discussion of this. As the GASB continues to move toward accrual accounting and away from cash basis, the comparison between fiscal years for both revenues and expenditures will become more difficult. OUTLOOK - LOCAL TAXES Short-term: Local taxes should continue to experience a modest increase as real and personal property will tend to appreciate in value over time. Minimum growth in assessed values should be about 3% per year. The in lieu of tax payments due from the Department of Electricity and from Gas and Water Departments are now transfers in from the respective funds and are no longer major revenues of the local taxes category. Long-term: The city’s rapid growth in population has been one of the major driving forces in the increases to the property tax base and in contributing to a healthy local economy. As the Federal Reserve continues to try to provide incentives for the economy to grow by maintaining very low interest rates, these actions will have a positive effect on the city’s property tax base and on the local sales tax revenues, which are generally economy influenced. In the absence of a sudden down turn in the economy, major annexations, or further property tax rate reductions, the local taxes should normally increase from 3% to 7% per year. Sales taxes should at a minimum increase at the rate of inflation. Beer and liquor taxes should continue growth rates of a minimum of 2% or more each fiscal year.
Chart 4 - 9 Summary of Appraised and Assessed Locally Assessed Properties For Fiscal Years 1993 - 2004 Fiscal Year Ended June 30, 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Average
Year of Tax Roll 1992 (1) 1993 (1) 1994 (1) 1995 (1) 1996 (1) 1997 (1) 1998 (1) 1999 (2) 2000 (2) 2001 (2) 2002 2003
Locally Assessed Property Estimated Assessed Appraised Value Value 542,742,755 n/a 1,818,741,336 566,610,152 4.40% 1,908,597,311 596,996,767 5.36% 2,015,593,569 639,810,941 7.17% 2,156,158,592 672,585,886 5.12% 2,267,304,683 870,272,106 29.39% 2,914,861,406 915,395,357 5.18% 3,089,919,801 958,287,576 4.69% 3,239,616,635 1,002,051,429 4.57% 3,417,567,346 1,035,917,062 3.38% 3,535,485,528 1,070,408,100 3.33% 3,656,679,665 1,259,370,690 17.65% 4,240,770,067 844,204,068 2,855,107,995
4-6
n/a 4.94% 5.61% 6.97% 5.15% 28.56% 6.01% 4.84% 5.49% 3.45% 3.43% 15.97%
Applicable Tax Rate 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 2.01 2.01 1.81 1.58 1.41
Section 4
NOTE: FY 1998 and FY 2004 were countywide reappraisal years. STATE SHARED REVENUES $ 10,524,113 State shared revenues are important elements of the city’s total estimated revenues. State shared revenues will represent 20.4% of the total revenues and other financing sources of the City of Clarksville in FY 2004. Overall this revenue category is generally sensitive to the economy. Over onehalf of these revenues in this category are tied to the economy. Gas tax revenues are based on cents per gallon and consumption. These revenues may be somewhat sensitive to the economy but not to the extent of the sales tax revenues. Chart 4 – 10 State Shared Revenues Revenue Description Sensitivity To Economy Sales Tax Yes Yes Telecommunications Sales Tax Halls Income Tax Beer Tax Liquor Tax Spec. Streets & Trans Inspections Gas Tax Revenues TVA Replacement Excise Tax Training Supplement-Police Off
Yes Yes Yes Yes Yes Yes Yes No
Training Supplement-Firefighters
No
Chart 4-11 FY 2004 State Shared Revenues $10,524,113 12,000,000
Training SupplementFirefighters Training SupplementPolice Off Excise Tax TVA Replacement Spec. Streets & Trans Inspections T Gas Tax-$0.03 Tax
9,000,000
Gas Tax Revenues 6,000,000
Gas Tax-1989 Increase Liquor Tax
3,000,000
Beer Tax Halls Income Tax
0 State Shared Revenues
4-7
Telecommunications Sales Tax Sales Tax
Section 4 UNCERTAINTY OF STATE SHARED REVENUES State shared revenues are subject to the uncertainty of the state legislature’s revenue problems. During the fiscal years prior to FY 2004, one or more of the state shared revenues had been considered by the State legislature as possibly being retained by the State of Tennessee to help with the state’s fiscal crisis. In FY 2004, the State did take $645,000 of the state shared revenues that would have normally been distributed to the city. The reductions of state shared revenues as estimated by the Municipal Technical Advisory Service (MTAS) are detailed in Chart 4-12. Chart 4 – 12 State of Tennessee Reductions in State Shared Revenues FY 2004 General Fund Per Capita Amount Changes In FY 2004 State Sales Tax (Cut 7.5 Percent) $56.49 State Beer Tax (Cut Nine Percent) $0.45 Special Petroleum Products Tax (City Streets And (No Cut) $2.26 Transportation Revenue) Gross Receipts Tax (TVA In Lieu Of Taxes – No Cut) $7.08 Total General Fund Revenue $66.28 State Street Aid Funds Gasoline And Motor Fuel Taxes (No Cut) $27.13 Total Per Capita (General And State Street Aid Funds) $93.41 The Hall Income Tax. The omnibus bill cuts amounts going back to cities by 33 percent beginning in FY 2004. The statewide projected increase is four percent, but individual city amounts will fluctuate. The corporate excise tax. The statewide projected increase is one percent. This tax is based on bank profits and is distributed based on situs in lieu of intangible personal property taxes. Cities must levy a property tax in order to receive revenue from this tax. The distribution back to cities was reduced by nine percent. The mixed drink tax. The statewide projected increase is 5.07 percent. The distribution back to cities was cut nine percent in the omnibus bill. Public safety salary supplements, which will be funded at reduced rates from FY 2003. The supplements were reduced. Upon completion of certain training requirements, police officers and fire personnel are eligible for bonus salary supplements of $546 and $409.50 respectively. State shared revenues, as a group, will generally increase or trend upward each year, see Chart 4-13. Individual decreases may be possible, as in the case of the Hall’s Income tax on interest earnings and dividends on income above certain levels.
Chart 4-13 Actual and Estimated State Shared Revenues 1993-2004
03
02
01
00
99
04 20
20
20
20
20
98
19
19
97 19
96 19
95 19
94 19
93
12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0
19
Revenues
State shared revenues are generally economy sensitive and they will move with the economy. The more robust the economy, the greater the annual increases in these revenues will be. Many of the state shared revenues are distributed based on the official population as certified by the state, therefore as the census changes every ten years, changes in the year following the census year will increase substantially. The official population remains in effect until the next federal census or a city conducted special census, whichever comes first. In a rapidly
Fiscal Year State Revenues
4-8
Linear ( State Revenues )
Section 4 growing city, the increase in revenues should outweigh the costs of a special census. The city will monitor the feasibility of a special census. If the State continues to change the allocation formulas of state shared revenues or continues to reduce the city’s share of the state revenues, a special census may not be worth the expense. Chart 4-13 indicated that the revenues are projected to decline from FY 2003 to FY 2004. This decline is due to the state retaining revenues that had been previously distributed to the cities. The City of Clarksville lost approximately $645,000 because of the state’s actions. OUTLOOK – STATE SHARED TAXES Short-term: If the state and national economy follow historical trends, the revenues should continue to follow historical levels and increase due to the expansion of the economy. The revenue estimates for FY 2004 as found in Chart 4-14 should be realized. The city made modest increases in FY 2004 revenue estimates based upon recommendations to the state by economists at the University of Tennessee, Middle Tennessee State University, Memphis State University, and the State Funding Board. Additionally the Municipal Technical Advisory Service provided cities across the state with estimates for the state shared revenues. Ultimately it became a judgment call. We believe the FY 2004 estimates are reasonable and should be realized. The uncertainty is in the long-term, no only as it applies to the economy, but to the future actions of the state legislature. Long-term: If the state and national economy follow historical trends, the revenues should continue to increase in the long-term. Annual growth rates and the level of volatility for the state share revenues as calculated by Tennessee Advisory Commission on Intergovernmental Relations (TACIR) are found in Chart 4-14. In the absence of further state legislative actions to further reduce the state distribution to the city, the average annual increases reflected in Chart 4-14 should approximate future increases in these revenues to the city. Additionally a special census may further the total dollar distributions to the city. Chart 4-14 was taken from the March 2000 TACIR staff report “State Shared Taxes In Tennessee”. Chart 4-14
The March 2000 TACIR staff report stated that of the taxes shared with local governments, franchise and excise taxes (this combined amount is used to measure volatility since adequate corporate excise tax data is not available), sales and use taxes, motor vehicle fuel taxes, and Hall income taxes exhibit the highest estimated average annual rates of growth (6.4 percent, 5.9 percent, 4.9 percent, and 4.7 percent respectively). The gasoline tax, which represents the single largest shared tax source, exhibits little growth overtime, largely because it is imposed on the volume of the product sold, not its price. The Hall income tax, while representing an important source of growing shared revenue to the city and
4-9
Section 4
county governments, is the most volatile shared tax source. All taxes, except for the beer tax, exhibit more volatility over the period than Tennessee personal income. So, the ups and downs of economic activity affect all taxes, just as it affects personal income. Some taxes simply exhibit more volatility during economic fluctuations than personal income (which, as expected, fluctuates over the business cycle). The estimated growth and volatility measures in the table can be interpreted in relation to the values calculated for Tennessee personal income. The state may stall financial problems in FY 2005. The state’s tax structure relies heavily on the sales tax. The same economic uncertainty that the city faces at the local level the state faces. If there should continue to be a funding problem at the state level, the legislature in FY 2005 or fiscal years thereafter, may again attempt to solve the state’s budget problem at the expense of the local governments. This reduction of state shared revenues that has historically been provided to the local governments could adversely impact these revenues in FY 2005 and the years thereafter requiring either significant reductions in government spending or the substitution of other revenue sources. The state’s economy as a whole will affect the level of distributions. Chart 4-14 is an average, which means there will be years that the growth in these state revenues will be less and there will be years that the growth in these revenues will be more. We are anticipating that for the next few fiscal years after FY 2004, the economy will be improving. We are presenting for comparative purposes the actual and estimated fines and forfeiture revenues for FY 2002, FY 2003, and FY 2004. Chart 4 – 15 Summary Schedule of State of Tennessee Shared Revenues FY 1992, 1993, and 1994 Collection Revenue FY 2002 FY 2003 FY 2004 Period Description Actual Estimated Estimated Sep-Aug Sales Tax 6,215,568 6,229,800 5,827,000 Sep-Aug Telecommunications 15,230 18,100 17,200 Sales Tax Sep-Aug Halls Income Tax 435,447 323,300 225,300 Jul-Jun Beer Tax 50,558 53,800 46,600 Sep-Aug Liquor Tax 333,572 336,000 321,200 Sep-Aug Gas Tax-1989 Increase 310,286 314,700 309,700 Sep-Aug Spec. Streets & Trans 238,550 227,100 233,800 Inspections T Sep-Aug Gas Tax Revenues 2,004,832 1,953,000 1,980,500 Sep-Aug Gas Tax-$0.03 Tax 575,892 584,000 584,400 Jul-Jun TVA Replacement 693,538 673,800 732,500 Jul-Jun Excise Tax 40,779 65,300 60,000 Jul-Jun Training Supplement106,400 116,400 112,260 Police Officers Jul-Jun Training Supplement72,600 79,200 71,253 Firefighters Jul-Jun Training Supplement2,240 2,400 2,400 Parks Department Officers State Revenues 11,095,492 10,976,900 10,524,113
4 - 10
Section 4 FINES AND FORFEITURES $ 503,600 Fines and forfeitures are not sensitive to the economy (Chart 4-16). These revenues are by-products of the city’s law enforcement activities. These revenues are not intended to be revenue producers but are incentives for citizens to comply with the law. These revenues are a function of population and visibility of Police Officers on the streets. Chart 4-17 indicates the distribution of the revenues. Chart 4-18 indicates a downward trend in our revenues Chart 4 – 16 realized from fines and forfeitures. It would be Fines and Forfeitures anticipated that with an increasing population, that Revenue Description Sensitivity To this revenue category would tend to increase. This Economy revenue is a by-product of public safety. Beer Fines No No Although revenues are generated from traffic and Police Department other fines, the primary goal of our police officers is Revenues No public safety. We believe that this trend may be Traffic School Fees Traffic Violation Fines No due to several factors, more warning citations are Police Dept. Refunds No being issued, a greater number of persons may be No opting for the traffic school, and/or an increase in Alcohol Beverage Control the backlog of unpaid tickets. The Mayor has Revenues appointed an ad hoc council committee to review Drug Fines to General No the city courts and make a recommendation as it Fund relates to the city court and the backlog of unpaid Fines & Seizures Shared No traffic citations. by FED Chart 4-18 Actual and Estimated Fines and Forfeitures 1993-2004
Chart 4-17 FY 2004 Fines and Forfeitures $ 503,600 600,000
1,200,000
500,000
1,000,000 Revenues
400,000 300,000 200,000
800,000 600,000 400,000 200,000
100,000
0
0
19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04
Fines and Forfeitures
Fiscal Year
Drug Fines to General Fund
Alcohol Beverage Control Revenues Traffic Violation Fines
Fines and Forfeitures
Linear ( Fines and Forfeitures )
OUTLOOK –FINES AND FORFEITURES Short-term: A significant portion of the revenues in this revenue category is from moving violations. One of the goals of our Police Department is to have safer streets. One method to do this is to issue citations. The goal of the citations is to produce safer drivers, not to raise revenue. We have forecast a
4 - 11
Section 4 status quo in FY 2004. This revenue category should increase with the increase in population of the city. This is not the case with this revenue category. This category will require some additional review. There is greater visibility of marked vehicles and this could be contributing to the reduction in this revenue category. As our driver safety programs work, these revenues should tend to decrease. Statistically as the population increases, the number of citations should increase, however our goal is safe drivers. If we are successful in causing motorists to drive more safely, this revenue will decline, regardless of the increase in population. The other element of this revenue is forfeitures related to illegal drug enforcement and alcohol sales. Like traffic citations our goal is to eradicate illegal drug and alcohol sales, not raise revenues. Revenues are a bi-product of enforcement that helps but does not pay for the cost of enforcement. Fines and forfeitures revenues are difficult to predict. Long-term: We do not believe that these revenues will change significantly over the next five years, generally we believe that these revenues could be + or - $200,000 of the current year’s estimates during this period, depending upon continued increase in the population, the enforcement policies of the city and the confiscations and seizure activities. As we indicated in the short-run, success in enforcement could tend to decrease this revenue.
We are presenting for comparative purposes the actual and estimated fines and forfeiture revenues for FY 2002, FY 2003, and FY 2004.
Chart 4 – 19 Fines and Forfeitures Collection Revenue Period Description Jul-Jun Beer Fines Jul-Jun Police Department Revenues Jul-Jun Traffic School Fees Jul-Jun Traffic Violation Fines Jul-Jun Police Dept. Refunds Jul-Jun Alcohol Beverage Control Revenues Jul-Jun Drug Fines to General Fund Jul-Jun Fines & Seizures Shared by FED Fines and Forfeitures
FY 2002 Actual 1,000 187,981
FY 2003 Estimated 9,500 110,000
90,282
93,800
93,800
316,852
273,600
273,600
9
-
-
470
7,700
7,700
25,524
18,500
18,500
3,901
-
-
626,019
513,100
503,600
4 - 12
FY 2004 Estimated 110,000
Section 4 PERMITS AND LICENSES $ 1,708,700 There are two major groups in this category. Those permits resulting from the issue of building permits and the subsequent inspection of construction and from the cable TV franchise agreement. Residential permits have continued to be healthy. Commercial construction has been down. Because over one-half of these revenues in this category come from cable TV franchise fees, this revenue category as a whole is not sensitive to the economy. The building related permits are sensitive to the economy, in particular interest rates, inflation and increases in population. Permits related to building should continue at healthy rates as long as the interest rates remain at or near the current low levels. Cable TV franchise fees should continue to increase as the population continues to increase.
Chart 4 – 20 Permits and Licenses Revenue Description Testing and Reinspections Sign Permits Plumbing Fees and Permits Gas Fees and Permits Fireworks Permits Electric Permits Cable TV Franchise Fee Building Permits Beer License Fee Adult Entertainment
Sensitivity To Economy Yes Yes Yes Yes No Yes No Yes No Yes
Chart 4-21 FY 2004 Permits and Licenses $ 1,708,700 1,800,000 Adult Entertainment Permit & L Testing, REinspections, Etc. Sign Permits
1,600,000 1,400,000 1,200,000
Gas Fees and Permits Plumbing Fees and Permits Building Permits
1,000,000 800,000 600,000
Cable TV Franchise Fee Fireworks Permits
400,000 200,000
Beer License Fee
0 Permits and Licenses
4 - 13
Section 4
OUTLOOK – PERMITS AND LICENSES Short-term: The revenues in the “Permits and Licenses” category are from two main sources; Building Codes’ permits for construction and from the cable TV franchise. As interest rates move upward the level of activity in the local building industry will decline. The boost from FY 1999 to FY 2000 occurred primarily due to an overall rate increase in the cost of building permits to more accurately reflect the prevailing rates generally used. Overall there was a 50% to 60% increase in the cost of permits. If the Federal Reserve continues to raise the rates or allows the rates to remain at current levels for a sustained period, the building permit revenues will be less than projected. The cable TV franchise fee is a percentage of gross receipts. As the local franchise fee increases their rate for operating cost increases the city will realize increases from these adjustments. We are fairly confident that the franchise fee revenue estimate will be realized. Long-term: The building permits will move up and down with the local economy, primarily centered on the construction industry. During times of economic expansion, as the numbers of permits issued increase and the cost of construction increases, these revenues will increase. Conversely as the economy slows or contracts these revenues will stabilize or decline. An offsetting factor will be the continued rapid growth of the city’s population. The continued growth in population will cause the demand for housing and expansion of commercial buildings to remain at higher levels than they would have otherwise been. The building permit revenues are indicative of future expansion of the property tax base for improvements to real property. If this revenue declines, future appraised and assessed value will reflect minimum growth, with any increases coming primarily from the appreciation of existing property values. Cable TV franchise fees should move upward as the population increases and due to inflation. As the Cable TV franchise raises rates in response to increasing cost of operations, the franchise fee as a percentage of the gross receipts will increase. The franchise fee is a fee on the cable TV franchise, not the consumer. It is a franchise cost of operation. As a cost of operation the cable TV franchise, at its option, may pass along the franchise fee to their subscribers or absorb all or a part of the franchise fee. We are presenting for comparative purposes the actual and estimated fines and forfeiture revenues for FY 2002, FY 2003, and FY 2004.
Chart 4 - 22 Fines and Forfeitures Collection Revenue FY 2002 Period Description Actual Jul-Jun Beer License Fee 5,690 Jul-Jun Fireworks Permits 11,250 Sep-Aug Cable TV Franchise Fee 928,324 Jul-Jun Building Permits 612,735 Jul-Jun Plumbing Fees and 134,127 Permits Jul-Jun Gas Fees and Permits 33,029 Jul-Jun Sign Permits 12,835 Jul-Jun Testing, RE-inspections, 21,710 Etc. Jul-Jun Adult Entertainment Permit 1,130 &L 1,760,830
Permits and Licenses
4 - 14
FY 2003 FY 2004 Estimated Estimated 5,600 5,600 10,000 10,000 926,500 926,500 568,100 568,100 134,300 134,300 30,000 16,300 20,200
30,000 12,800 20,200
1,200
1,200
1,712,200 1,708,700
Section 4 FEES FOR SERVICES $ 1,536,910 The city tries to recover all or a significantly large portion of many of the services that the city provides to citizens. A significant portion of these revenue sources comes from fees charged for recreational activities. The levels of these revenues are dependent upon disposable income of the area’s families. During economic downturns, we believe that these revenues related to activities of the parks and recreation programs and to the golf courses, would be diverted to other household expenses.
Chart 4-23 Actual and Estimated Fees for Services 1993-2004
Revenues
2,000,000 1,500,000 1,000,000 500,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Year Fees for Services
Linear ( Fees for Services )
OUTLOOK – FEES FOR SERVICES Short-term: A significant portion of this revenue comes from the Golf Courses and the Parks and Recreation Department. These programs review their fees annually. The goal is to recover as much of the cost of providing these services as possible without pricing out the city’s citizens. The revenues of the golf courses and the Parks and Recreation Department are subject to influence of the weather. A significant portion of these revenues is realized during the March through August period. Unusually wet, cool, or hot springs and summers will affect the activities and the revenues of the Golf Courses and the Parks and Recreation Department differently. Loss of greens and fairways will also affect the revenues of the golf courses. Long-term: We believe that these revenues will tend to increase as the population (citizens served) increases and due to inflation. The goal for any fee adjustment will be to recover as much of the cost as possible without the service becoming unaffordable for our citizens.
GRANTS $625,664
Collection Revenue Period Description Jul-Jun HUD-Police Dept Grant-CHA Jul-Jun GREAT Grant Jul-Jun COPS Grant Jul-Jun Grants - Misc.
Chart 4 - 24 Federal Grants FY 2002 FY 2003 Actual Estimated 43,147 32,400 17,058 315,741 94,369
4 - 15
173,580 63,800
FY 2004 Estimated 51,499 150,000 345,661
Section 4
Collection Period Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun
Chart 4 - 24 Federal Grants FY 2002 FY 2003 Actual Estimated
Revenue Description Federal Byrnes Grant STEP Grant DOJ Block Grant HUDRecreations Facilities Summer Lunch Grant Federal Grants
73,789 -
Collection Revenue Period Description Jul-Jun GrantsMiscellaneous. State Grants Jul-Jun Hwy Safety Grant Other Grants
FY 2004 Estimated
84,210 82,800
-
56,097
27,880
-
4,897
25,540
50,000
605,098
490,210
597,160
FY 2003 Estimated 23,790
FY 2004 Estimated 28,504
23,790
28,504
Chart 4 - 25 State Grants FY 2002 Actual 30,141 3,917 34,058
Revenues
Chart 4-26 Actual and Estimated Interest Revenues 1993-2004 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fiscal Year Grants
Linear ( Grants )
OUTLOOK - GRANTS Short-term: Grants are anticipated in FY 2004: Federal: State: Other:
$ 597,160 $ 28,504 $ 0
4 - 16
Section 4
Chart 4 - 27 Federal Grants Grant Description
Awarded Amount
Safe Neighborhoods Grant (will pay 10% of the 25% local match on COPS grants, leaving the city to pay 15% in local match. Estimated to be approximately $40,000 per year. Fire grants may be available, the city's priorities must match those of the federal government. PENDING WILL AMEND LATER WHEN APPROVED Department of Justice COPS grant Block Grant Bullet-proof vests grants should again be available in FY 2004 STEP (Selective Traffic Enforcement Program) This grant could reach $150,000. In FY 2003, this grant was used to hire 6 officers and radar units. Year 2 grant request has been submitted. Combined total during FY04 could reach 250,635, yr 2 of grant. Total 3 years project. Summer Lunch Program GREAT -Gang Resistance Education and Training - new award for past grant (no match requirement must keep GREAT Program active) Total Federal Grants
40,000 54,776 150,000 80,000 3,000
247,885 50,000 51,499 597,160
Chart 4 - 28 State Grants Grant Description
Awarded Amount
Juvenile Justice Block Grant from Tennessee Commission on Children and Youth (Block Grant for professional services monitoring system) Total State Grants
28,504 28,504
Long-term: The long-term prospects are dependent upon the availability of grants at the Federal and State levels. The city will aggressively apply for grants, however availability is subject to funding at the Federal and State levels. With the State’s funding problems, it is doubtful that the availability of grants from the State will increase above current levels. The Department of Justice continues to provide grants for additional police officers and block grants for other purposes. The continued receipts of these and other Federal grants are dependent upon the appropriations by Congress. The city is aware that these sources may not be available in future fiscal years. MISCELLANEOUS REVENUES $425,165 INTEREST REVENUES: $187,500
Collection Revenue Period Description Jul-Jun Interest
Chart 4 - 29 Interest Revenues FY 2002 FY 2003 Actual Estimated 282,775 187,500
4 - 17
FY 2004 Estimated 187,500
Section 4
Chart 4 - 30 Actual and Estimated Interest Revenues 1993-2004
Revenues
1,000,000 800,000 600,000 400,000 200,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fiscal Year Interest
Linear ( Interest )
OUTLOOK - INTEREST Short-term: The city’s interest revenues for FY 2004 will be about the same as FY 2003 estimated actual. Due to the short-term nature of the city’s investments, if rates should remain at the current low rates or if they should continue to decline, the interest revenues will decline with the rates. All investments of city funds are at one year or less. Long-term: The interest revenues are dependent upon the available cash and interest rates; these are unknowns in the long-term. MISCELLANEOUS REVENUES: $237,665 Miscellaneous revenues are those revenues that are infrequent. These revenues do not have an identifiable trend. The city knows there will be revenues that are infrequent and for which the amount of the revenues is uncertain. Typically factoring out all know extraordinarily large revenues posted to this category, a reasonable estimate can be developed for this category. Chart 4 - 32 Miscellaneous Revenues Collection Revenue FY 2002 Period Description Actual Jul-Jun Miscellaneous Finance Dept Rev 483 Jul-Jun Misc. Building Maintenance. 11,096 Revenue Jul-Jun Miscellaneous-Non-Taxable 51 Jul-Jun Horse Patrol Contributions 60 Jul-Jun Donations to Police Department Jul-Jun Rental Revenues 73,075 Jul-Jun Mayor's Youth Council Donation 2,040 Jul-Jun Mayors Youth Co 181 Jul-Jun RENT-1 Public Square 89,501 Jul-Jun Drink Machine Purchases (691) Jul-Jun Drink Machine & Other Taxable 1,374 Jul-Jun Sales Tax Collected (248) (Miscellaneous) Jul-Jun Insurance. Reimburse. for Losses 34,120
4 - 18
FY 2003 Estimated 1,000 1,730
FY 2004 Estimated 500 1,730
370 15,200 1,150 94,785 (430) 1,230 (80)
15,200 94,785 (430) 1,230 (50)
-
-
Section 4
Chart 4 - 32 Miscellaneous Revenues Collection Revenue FY 2002 Period Description Actual Jul-Jun Donations-Fire Dept. Toy Drive 4,156 Jul-Jun Donations-Fire 2,575 Jul-Jun Donations – Misc. 101 Jul-Jun Miscellaneous Revenues 70,144 Jul-Jun Returned Checks 479 Jul-Jun Sale of Surplus Property 175,302 Jul-Jun CBID Sidewalk Improvement 53,143 Jul-Jun Catastrophic Occurrence Revenue Miscellaneous Revenues 516,942
FY 2003 Estimated 1,440 (33,000) (1,740) 55,900 137,555
FY 2004 Estimated 1,440 (1,740) 50,000 75,000 237,665
OUTLOOK- MISCELLANEOUS REVENUES Short-term and Long-term: Miscellaneous revenues are infrequent, unusual, or otherwise cannot be classified within an existing revenue classification. Statistically they will occur, but the amount and when is not known, nor can they be reasonably estimated. A reasonable estimate would be an average over the last three to five years or reviewing the prior year’s miscellaneous revenues and making estimates accordingly.
Chart 4 - 33 Actual and Estimated Miscellaneous or Other Revenues 1993-2004
Revenues
2,000,000 1,500,000 1,000,000 500,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fiscal Year Miscellaneous
4 - 19
Linear (Miscellaneous)
Section 4
4 - 20
SECTION 4 REVENUES OVERALL REVENUES AND FINANCING SOURCES Chart 4-1 graphically shows the actual “Total Revenues” and “Total Revenues and Financing Sources” for fiscals years 1993 through 2003 and the estimated for the fiscal year 2004. The revenues shown will be based on the generally accepted accounting principles applicable to the fiscal year. Governmental Accounting Standards Board (GASB) 33 became effective for the fiscal year 2001, and GASB 34 changed the recognition of revenues for the governmental funds. Comparison with preGASB 33 and 34 fiscal years will be difficult when comparing the “Total Revenues” across the periods. However the Total Revenues and Financing Sources will be comparable. GASB Statement 33 reclassified the in lieu of payments from the utilities to the general government effective with FY 2002. In FY 2002, in FY 2003, and FY 2004, the in lieu of was placed in local taxes to facilitate the comparison for the period 1993 through 2004. Chart 4 -1 Revenues and Revenues and Other Financing Sources 1993-2004 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 1993
1994
1995
1996
Revenues
1997
1998
1999
2000
2001
2002
2003
2004
Revenues and Other Financing Sources
Examples of the changes of the annual increases in total revenues are listed in the Chart 4-2. It should be noted that GASB 33 and 34 modified the accounting treatment of certain revenues; therefore the accounting treatment from earlier fiscal years to the current and to the future fiscal years will not be consistent. Generally in the absence of a tax rate adjustment, revenues will increase. Increases are generally due to the appreciation of the values of the properties within the city, expansion of the national, state and local economies, population growth, and inflation.
4-1
Section 4
Chart 4 - 2 Summary of Estimated and Actual Total Revenues And Total Other Financing Sources (transfers in) For Fiscal Years 1993- 2004 (based on applicable generally accepted accounting principles)
Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Total Revenues 23,356,331 24,981,072 26,316,489 29,676,972 33,484,306 35,521,915 38,590,706 49,430,064 52,607,227 47,255,453 46,891,615 47,674,753
Annual Percent Change n/a 6.96% 5.35% 12.77% 12.83% 6.09% 8.64% 28.09% 6.43% -10.17% -0.77% 1.67%
Total Revenues And Financing Sources 29,479,468 30,244,717 26,316,489 29,695,722 34,965,556 35,521,915 44,741,286 49,749,557 52,757,215 50,617,954 50,468,945 51,646,482
Annual Percent Change n/a 2.60% -12.99% 12.84% 17.75% 1.59% 25.95% 11.19% 6.05% -4.05% -0.29% 2.33%
Chart 4-2 provides information about the annual percent changes in total revenues and total revenues and financing sources (transfers in from other funds of the city) for the period 1993 through 2004. The significant increase in revenues in FY 2000 was because the tax rate increased from $1.19 to $2.01. The sources of revenues of the general government are listed in Chart 4-3 for the fiscal years 2002, 2003, and 2004. BASIC REVENUE CATEGORIES
Collection Period Varies Varies Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun
Chart 4-3 Summary Schedule of Revenues FY 2002, FY 2003, and FY 2004 Revenue FY 2002 FY 2003 Cat. Description Actual Estimated LT Local Taxes 30,903,980 31,545,350 SR State Shared Revenues 11,095,492 10,976,900 FG Grants-Federal 655,098 490,210 PG Grants-Other 0 2,900 SG Grants-State 34,058 23,790 FS Fees for Services 1,359,581 1,302,110 FF Fines and Forfeitures 626,019 513,100 I Interest 277,997 187,500 M Miscellaneous 542,329 137,555 P Permits and Licenses 1,760,830 1,712,200 Total Revenues 47,255,384 46,891,615
Total Transfers In
FY 2004 Estimated 32,350,601 10,524,113 597,160 0 28,504 1,536,910 503,600 187,500 237,665 1,708,700 47,674,753
3,362,501 3,577,330 3,971,729
4-2
Section 4
Chart 4-3 Summary Schedule of Revenues FY 2002, FY 2003, and FY 2004 Collection Revenue FY 2002 FY 2003 FY 2004 Period Cat. Description Actual Estimated Estimated Total Revenues and Transfers In 50,617,885 50,468,945 51,646,482
Chart 4 - 4 Funding Sources In FY 2004
Chart 4 - 4 highlights the relative importance of each of these sources in the overall $51,646,482 revenue goals. Local taxes and state shared revenues will provide 83% of the total revenues and financing sources in FY 2004.
Permits and Miscellaneous Licenses Fines and 1% 3% Forfeitures 1% Fees for Services 3% Grants 1% State Shared Revenues 20%
Transfers In 8%
Local Taxes 63%
LOCAL TAXES $ 32,350,601 Local taxes are sensitive to the economy. The property tax base tends to expand at greater rates during periods of economic upswings. Local sales taxes and business taxes are based on the gross retail sales and gross receipts of covered businesses and are therefore very sensitive to the state and local economy (Chart 4-5). Chart 4 - 5 Local Taxes Revenue Description Sensitivity To Economy Property Taxes Somewhat In Lieu of Taxes No Local Sales Tax Yes Beer and Liquor Taxes Somewhat Business Tax Yes Hotel/Motel Tax Yes Local Taxes Overall – Yes
4-3
Section 4 Property taxes account for a significantly large portion of the local tax category. Property taxes are somewhat sensitive to the local economic conditions. In periods of turns in the economy and higher unemployment, the city can generally see the tax base expand at a less rapid rate and the rate of collections for property taxes in the year the taxes are levied to go down. In lieu of taxes under post GASB 34 principles consist of two in lieu of payments. These payments are (1) South Central Village’s in lieu of tax payment is established by contract.
Chart 4-6 FY 2004 Local Taxes $32,350,601 35,000,000
30,000,000
In Lieu of Tax Payments Business Taxes
25,000,000
Hotel/Motel Taxes 20,000,000
Sales Taxes 15,000,000
Business Taxes
10,000,000
Beer and Liquor Taxes Property Taxes
(2) Clarksville Housing 5,000,000 Authority's in lieu of tax payment is established by 0 formula. This revenue shows very little movement from year to year. The Authority provides low rental housing.
Local Taxes
In the pre-GASB 34 fiscal periods, the in lieu of taxes paid by the city’s utilities were included in this category. This change was effective with the fiscal year 2002. These sources of funds are no longer considered local taxes or revenues but are now classified as other financing sources. The city will continue to receive these revenues as permitted under state law, but we will no longer classify them as local taxes or revenues. This will skew the comparison of fiscal years prior to 2002. Two factors influence both local sales taxes and business taxes. These factors are: (1) inflation and (2) the increase in population not only in Clarksville- Montgomery County but also in the surrounding counties. These two taxes are percentages of covered retail sales or gross receipts of local businesses. Clarksville is becoming a commercial/retail area for the surrounding counties and benefits from persons living in surround counties shopping in Clarksville. This trend should continue. The one potential problem is the deployment of the 101st to Iraq. When we established this budget, we did not believe the deployment would have an immediate significant impact on FY 2004. It appeared that many dependents were choosing to remain in Clarksville during this deployment. If this trend continues the sales and business taxes should not be affected. Beer and liquor taxes will typically increase each year regardless of the economy. This is generally a consumption tax and like any other consumption tax, the level of revenue collections is responsive to inflation and the increase in population.
4-4
Section 4 The hotel/motel tax is influenced by the economy. As the national economy expands and contracts it is expected that this revenue will mirror the economy. Chart 4-7 presents for comparative purposes the fiscal years 2002, 2003 and 2004.
Collection Period Sep-Aug Sep-Aug Jul-Jun Sep-Aug Sep-Aug Jul-Jun Jul-Jun
Chart 4 - 7 City of Clarksville Summary Schedule of Revenues - Property Taxes Revenue FY 2002 FY 2003 Description Actual Estimated Property Taxes 19,305,399 19,613,100 Beer and Liquor Taxes 2,181,804 2,222,200 Business Taxes 1,356,368 1,253,200 Sales Taxes 7,847,258 8,191,900 Hotel/Motel Taxes 205,431 242,800 Business Taxes 350 5,200 In Lieu of Tax Payments 7,370 16,950 Local Taxes 30,903,980 31,545,350
FY 2004 Estimated 20,123,261 2,259,400 1,261,300 8,478,570 205,000 5,200 17,870 32,350,601
Chart 4-8 indicates that local taxes will trend upward from year to year. FY 2000 and FY 2001 are noticeably above the trend line. In these fiscal years the tax rate per $100 of assessed value was $2.01. In FY 2000 the tax rate was increased from $1.19 to $2.01. In FY 2002 the tax rate was reduced from $2.01 to $1.81. In FY 2004 the tax rate fell from $1.81 to $1.58 (certified tax rate).
Revenues
Chart 4-8 Actual and Estimated Local Taxes 1993-2004 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Year Local Taxes Pre-GASB 34
Local Taxes Post-GASB 34
Linear (Local Taxes Pre-GASB 34)
Linear (Local Taxes Post-GASB 34)
We have provided two data lines in Chart 4-8 for the local tax data spanning the fiscal years 1993 through 2004. The two lines are to demonstrate the impact that GASB statements can have when implemented. Statements 33 and 34 were far reaching. Statement 34 received the publicity, but statement 33 had a significant impact on the recognition of revenue. For many of the local taxes (sales taxes, beer and liquor taxes, and hotel motel taxes), the revenue recognition period was extended out
4-5
Section 4 to 60 days beyond the June 30 fiscal year end for simplicity to the end of August. The in lieu of tax payments received from the city’s utilities (gas department, water and sewer department, and the electric department) were reclassified from local taxes to “Financing Sources” at the fund level (they are now transfers in). The impact of these changes in accounting principles has been changes to the composition of the fund balance at June 30 from a less liquid state. See Section 7 for more discussion of this. As the GASB continues to move toward accrual accounting and away from cash basis, the comparison between fiscal years for both revenues and expenditures will become more difficult. OUTLOOK - LOCAL TAXES Short-term: Local taxes should continue to experience a modest increase as real and personal property will tend to appreciate in value over time. Minimum growth in assessed values should be about 3% per year. The in lieu of tax payments due from the Department of Electricity and from Gas and Water Departments are now transfers in from the respective funds and are no longer major revenues of the local taxes category. Long-term: The city’s rapid growth in population has been one of the major driving forces in the increases to the property tax base and in contributing to a healthy local economy. As the Federal Reserve continues to try to provide incentives for the economy to grow by maintaining very low interest rates, these actions will have a positive effect on the city’s property tax base and on the local sales tax revenues, which are generally economy influenced. In the absence of a sudden down turn in the economy, major annexations, or further property tax rate reductions, the local taxes should normally increase from 3% to 7% per year. Sales taxes should at a minimum increase at the rate of inflation. Beer and liquor taxes should continue growth rates of a minimum of 2% or more each fiscal year.
Chart 4 - 9 Summary of Appraised and Assessed Locally Assessed Properties For Fiscal Years 1993 - 2004 Fiscal Year Ended June 30, 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Average
Year of Tax Roll 1992 (1) 1993 (1) 1994 (1) 1995 (1) 1996 (1) 1997 (1) 1998 (1) 1999 (2) 2000 (2) 2001 (2) 2002 2003
Locally Assessed Property Estimated Assessed Appraised Value Value 542,742,755 n/a 1,818,741,336 566,610,152 4.40% 1,908,597,311 596,996,767 5.36% 2,015,593,569 639,810,941 7.17% 2,156,158,592 672,585,886 5.12% 2,267,304,683 870,272,106 29.39% 2,914,861,406 915,395,357 5.18% 3,089,919,801 958,287,576 4.69% 3,239,616,635 1,002,051,429 4.57% 3,417,567,346 1,035,917,062 3.38% 3,535,485,528 1,070,408,100 3.33% 3,656,679,665 1,259,370,690 17.65% 4,240,770,067 844,204,068 2,855,107,995
4-6
n/a 4.94% 5.61% 6.97% 5.15% 28.56% 6.01% 4.84% 5.49% 3.45% 3.43% 15.97%
Applicable Tax Rate 1.19 1.19 1.19 1.19 1.19 1.19 1.19 1.19 2.01 2.01 1.81 1.58 1.41
Section 4
NOTE: FY 1998 and FY 2004 were countywide reappraisal years. STATE SHARED REVENUES $ 10,524,113 State shared revenues are important elements of the city’s total estimated revenues. State shared revenues will represent 20.4% of the total revenues and other financing sources of the City of Clarksville in FY 2004. Overall this revenue category is generally sensitive to the economy. Over onehalf of these revenues in this category are tied to the economy. Gas tax revenues are based on cents per gallon and consumption. These revenues may be somewhat sensitive to the economy but not to the extent of the sales tax revenues. Chart 4 – 10 State Shared Revenues Revenue Description Sensitivity To Economy Sales Tax Yes Yes Telecommunications Sales Tax Halls Income Tax Beer Tax Liquor Tax Spec. Streets & Trans Inspections Gas Tax Revenues TVA Replacement Excise Tax Training Supplement-Police Off
Yes Yes Yes Yes Yes Yes Yes No
Training Supplement-Firefighters
No
Chart 4-11 FY 2004 State Shared Revenues $10,524,113 12,000,000
Training SupplementFirefighters Training SupplementPolice Off Excise Tax TVA Replacement Spec. Streets & Trans Inspections T Gas Tax-$0.03 Tax
9,000,000
Gas Tax Revenues 6,000,000
Gas Tax-1989 Increase Liquor Tax
3,000,000
Beer Tax Halls Income Tax
0 State Shared Revenues
4-7
Telecommunications Sales Tax Sales Tax
Section 4 UNCERTAINTY OF STATE SHARED REVENUES State shared revenues are subject to the uncertainty of the state legislature’s revenue problems. During the fiscal years prior to FY 2004, one or more of the state shared revenues had been considered by the State legislature as possibly being retained by the State of Tennessee to help with the state’s fiscal crisis. In FY 2004, the State did take $645,000 of the state shared revenues that would have normally been distributed to the city. The reductions of state shared revenues as estimated by the Municipal Technical Advisory Service (MTAS) are detailed in Chart 4-12. Chart 4 – 12 State of Tennessee Reductions in State Shared Revenues FY 2004 General Fund Per Capita Amount Changes In FY 2004 State Sales Tax (Cut 7.5 Percent) $56.49 State Beer Tax (Cut Nine Percent) $0.45 Special Petroleum Products Tax (City Streets And (No Cut) $2.26 Transportation Revenue) Gross Receipts Tax (TVA In Lieu Of Taxes – No Cut) $7.08 Total General Fund Revenue $66.28 State Street Aid Funds Gasoline And Motor Fuel Taxes (No Cut) $27.13 Total Per Capita (General And State Street Aid Funds) $93.41 The Hall Income Tax. The omnibus bill cuts amounts going back to cities by 33 percent beginning in FY 2004. The statewide projected increase is four percent, but individual city amounts will fluctuate. The corporate excise tax. The statewide projected increase is one percent. This tax is based on bank profits and is distributed based on situs in lieu of intangible personal property taxes. Cities must levy a property tax in order to receive revenue from this tax. The distribution back to cities was reduced by nine percent. The mixed drink tax. The statewide projected increase is 5.07 percent. The distribution back to cities was cut nine percent in the omnibus bill. Public safety salary supplements, which will be funded at reduced rates from FY 2003. The supplements were reduced. Upon completion of certain training requirements, police officers and fire personnel are eligible for bonus salary supplements of $546 and $409.50 respectively. State shared revenues, as a group, will generally increase or trend upward each year, see Chart 4-13. Individual decreases may be possible, as in the case of the Hall’s Income tax on interest earnings and dividends on income above certain levels.
Chart 4-13 Actual and Estimated State Shared Revenues 1993-2004
03
02
01
00
99
04 20
20
20
20
20
98
19
19
97 19
96 19
95 19
94 19
93
12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0
19
Revenues
State shared revenues are generally economy sensitive and they will move with the economy. The more robust the economy, the greater the annual increases in these revenues will be. Many of the state shared revenues are distributed based on the official population as certified by the state, therefore as the census changes every ten years, changes in the year following the census year will increase substantially. The official population remains in effect until the next federal census or a city conducted special census, whichever comes first. In a rapidly
Fiscal Year State Revenues
4-8
Linear ( State Revenues )
Section 4 growing city, the increase in revenues should outweigh the costs of a special census. The city will monitor the feasibility of a special census. If the State continues to change the allocation formulas of state shared revenues or continues to reduce the city’s share of the state revenues, a special census may not be worth the expense. Chart 4-13 indicated that the revenues are projected to decline from FY 2003 to FY 2004. This decline is due to the state retaining revenues that had been previously distributed to the cities. The City of Clarksville lost approximately $645,000 because of the state’s actions. OUTLOOK – STATE SHARED TAXES Short-term: If the state and national economy follow historical trends, the revenues should continue to follow historical levels and increase due to the expansion of the economy. The revenue estimates for FY 2004 as found in Chart 4-14 should be realized. The city made modest increases in FY 2004 revenue estimates based upon recommendations to the state by economists at the University of Tennessee, Middle Tennessee State University, Memphis State University, and the State Funding Board. Additionally the Municipal Technical Advisory Service provided cities across the state with estimates for the state shared revenues. Ultimately it became a judgment call. We believe the FY 2004 estimates are reasonable and should be realized. The uncertainty is in the long-term, no only as it applies to the economy, but to the future actions of the state legislature. Long-term: If the state and national economy follow historical trends, the revenues should continue to increase in the long-term. Annual growth rates and the level of volatility for the state share revenues as calculated by Tennessee Advisory Commission on Intergovernmental Relations (TACIR) are found in Chart 4-14. In the absence of further state legislative actions to further reduce the state distribution to the city, the average annual increases reflected in Chart 4-14 should approximate future increases in these revenues to the city. Additionally a special census may further the total dollar distributions to the city. Chart 4-14 was taken from the March 2000 TACIR staff report “State Shared Taxes In Tennessee”. Chart 4-14
The March 2000 TACIR staff report stated that of the taxes shared with local governments, franchise and excise taxes (this combined amount is used to measure volatility since adequate corporate excise tax data is not available), sales and use taxes, motor vehicle fuel taxes, and Hall income taxes exhibit the highest estimated average annual rates of growth (6.4 percent, 5.9 percent, 4.9 percent, and 4.7 percent respectively). The gasoline tax, which represents the single largest shared tax source, exhibits little growth overtime, largely because it is imposed on the volume of the product sold, not its price. The Hall income tax, while representing an important source of growing shared revenue to the city and
4-9
Section 4
county governments, is the most volatile shared tax source. All taxes, except for the beer tax, exhibit more volatility over the period than Tennessee personal income. So, the ups and downs of economic activity affect all taxes, just as it affects personal income. Some taxes simply exhibit more volatility during economic fluctuations than personal income (which, as expected, fluctuates over the business cycle). The estimated growth and volatility measures in the table can be interpreted in relation to the values calculated for Tennessee personal income. The state may stall financial problems in FY 2005. The state’s tax structure relies heavily on the sales tax. The same economic uncertainty that the city faces at the local level the state faces. If there should continue to be a funding problem at the state level, the legislature in FY 2005 or fiscal years thereafter, may again attempt to solve the state’s budget problem at the expense of the local governments. This reduction of state shared revenues that has historically been provided to the local governments could adversely impact these revenues in FY 2005 and the years thereafter requiring either significant reductions in government spending or the substitution of other revenue sources. The state’s economy as a whole will affect the level of distributions. Chart 4-14 is an average, which means there will be years that the growth in these state revenues will be less and there will be years that the growth in these revenues will be more. We are anticipating that for the next few fiscal years after FY 2004, the economy will be improving. We are presenting for comparative purposes the actual and estimated fines and forfeiture revenues for FY 2002, FY 2003, and FY 2004. Chart 4 – 15 Summary Schedule of State of Tennessee Shared Revenues FY 1992, 1993, and 1994 Collection Revenue FY 2002 FY 2003 FY 2004 Period Description Actual Estimated Estimated Sep-Aug Sales Tax 6,215,568 6,229,800 5,827,000 Sep-Aug Telecommunications 15,230 18,100 17,200 Sales Tax Sep-Aug Halls Income Tax 435,447 323,300 225,300 Jul-Jun Beer Tax 50,558 53,800 46,600 Sep-Aug Liquor Tax 333,572 336,000 321,200 Sep-Aug Gas Tax-1989 Increase 310,286 314,700 309,700 Sep-Aug Spec. Streets & Trans 238,550 227,100 233,800 Inspections T Sep-Aug Gas Tax Revenues 2,004,832 1,953,000 1,980,500 Sep-Aug Gas Tax-$0.03 Tax 575,892 584,000 584,400 Jul-Jun TVA Replacement 693,538 673,800 732,500 Jul-Jun Excise Tax 40,779 65,300 60,000 Jul-Jun Training Supplement106,400 116,400 112,260 Police Officers Jul-Jun Training Supplement72,600 79,200 71,253 Firefighters Jul-Jun Training Supplement2,240 2,400 2,400 Parks Department Officers State Revenues 11,095,492 10,976,900 10,524,113
4 - 10
Section 4 FINES AND FORFEITURES $ 503,600 Fines and forfeitures are not sensitive to the economy (Chart 4-16). These revenues are by-products of the city’s law enforcement activities. These revenues are not intended to be revenue producers but are incentives for citizens to comply with the law. These revenues are a function of population and visibility of Police Officers on the streets. Chart 4-17 indicates the distribution of the revenues. Chart 4-18 indicates a downward trend in our revenues Chart 4 – 16 realized from fines and forfeitures. It would be Fines and Forfeitures anticipated that with an increasing population, that Revenue Description Sensitivity To this revenue category would tend to increase. This Economy revenue is a by-product of public safety. Beer Fines No No Although revenues are generated from traffic and Police Department other fines, the primary goal of our police officers is Revenues No public safety. We believe that this trend may be Traffic School Fees Traffic Violation Fines No due to several factors, more warning citations are Police Dept. Refunds No being issued, a greater number of persons may be No opting for the traffic school, and/or an increase in Alcohol Beverage Control the backlog of unpaid tickets. The Mayor has Revenues appointed an ad hoc council committee to review Drug Fines to General No the city courts and make a recommendation as it Fund relates to the city court and the backlog of unpaid Fines & Seizures Shared No traffic citations. by FED Chart 4-18 Actual and Estimated Fines and Forfeitures 1993-2004
Chart 4-17 FY 2004 Fines and Forfeitures $ 503,600 600,000
1,200,000
500,000
1,000,000 Revenues
400,000 300,000 200,000
800,000 600,000 400,000 200,000
100,000
0
0
19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04
Fines and Forfeitures
Fiscal Year
Drug Fines to General Fund
Alcohol Beverage Control Revenues Traffic Violation Fines
Fines and Forfeitures
Linear ( Fines and Forfeitures )
OUTLOOK –FINES AND FORFEITURES Short-term: A significant portion of the revenues in this revenue category is from moving violations. One of the goals of our Police Department is to have safer streets. One method to do this is to issue citations. The goal of the citations is to produce safer drivers, not to raise revenue. We have forecast a
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Section 4 status quo in FY 2004. This revenue category should increase with the increase in population of the city. This is not the case with this revenue category. This category will require some additional review. There is greater visibility of marked vehicles and this could be contributing to the reduction in this revenue category. As our driver safety programs work, these revenues should tend to decrease. Statistically as the population increases, the number of citations should increase, however our goal is safe drivers. If we are successful in causing motorists to drive more safely, this revenue will decline, regardless of the increase in population. The other element of this revenue is forfeitures related to illegal drug enforcement and alcohol sales. Like traffic citations our goal is to eradicate illegal drug and alcohol sales, not raise revenues. Revenues are a bi-product of enforcement that helps but does not pay for the cost of enforcement. Fines and forfeitures revenues are difficult to predict. Long-term: We do not believe that these revenues will change significantly over the next five years, generally we believe that these revenues could be + or - $200,000 of the current year’s estimates during this period, depending upon continued increase in the population, the enforcement policies of the city and the confiscations and seizure activities. As we indicated in the short-run, success in enforcement could tend to decrease this revenue.
We are presenting for comparative purposes the actual and estimated fines and forfeiture revenues for FY 2002, FY 2003, and FY 2004.
Chart 4 – 19 Fines and Forfeitures Collection Revenue Period Description Jul-Jun Beer Fines Jul-Jun Police Department Revenues Jul-Jun Traffic School Fees Jul-Jun Traffic Violation Fines Jul-Jun Police Dept. Refunds Jul-Jun Alcohol Beverage Control Revenues Jul-Jun Drug Fines to General Fund Jul-Jun Fines & Seizures Shared by FED Fines and Forfeitures
FY 2002 Actual 1,000 187,981
FY 2003 Estimated 9,500 110,000
90,282
93,800
93,800
316,852
273,600
273,600
9
-
-
470
7,700
7,700
25,524
18,500
18,500
3,901
-
-
626,019
513,100
503,600
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FY 2004 Estimated 110,000
Section 4 PERMITS AND LICENSES $ 1,708,700 There are two major groups in this category. Those permits resulting from the issue of building permits and the subsequent inspection of construction and from the cable TV franchise agreement. Residential permits have continued to be healthy. Commercial construction has been down. Because over one-half of these revenues in this category come from cable TV franchise fees, this revenue category as a whole is not sensitive to the economy. The building related permits are sensitive to the economy, in particular interest rates, inflation and increases in population. Permits related to building should continue at healthy rates as long as the interest rates remain at or near the current low levels. Cable TV franchise fees should continue to increase as the population continues to increase.
Chart 4 – 20 Permits and Licenses Revenue Description Testing and Reinspections Sign Permits Plumbing Fees and Permits Gas Fees and Permits Fireworks Permits Electric Permits Cable TV Franchise Fee Building Permits Beer License Fee Adult Entertainment
Sensitivity To Economy Yes Yes Yes Yes No Yes No Yes No Yes
Chart 4-21 FY 2004 Permits and Licenses $ 1,708,700 1,800,000 Adult Entertainment Permit & L Testing, REinspections, Etc. Sign Permits
1,600,000 1,400,000 1,200,000
Gas Fees and Permits Plumbing Fees and Permits Building Permits
1,000,000 800,000 600,000
Cable TV Franchise Fee Fireworks Permits
400,000 200,000
Beer License Fee
0 Permits and Licenses
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Section 4
OUTLOOK – PERMITS AND LICENSES Short-term: The revenues in the “Permits and Licenses” category are from two main sources; Building Codes’ permits for construction and from the cable TV franchise. As interest rates move upward the level of activity in the local building industry will decline. The boost from FY 1999 to FY 2000 occurred primarily due to an overall rate increase in the cost of building permits to more accurately reflect the prevailing rates generally used. Overall there was a 50% to 60% increase in the cost of permits. If the Federal Reserve continues to raise the rates or allows the rates to remain at current levels for a sustained period, the building permit revenues will be less than projected. The cable TV franchise fee is a percentage of gross receipts. As the local franchise fee increases their rate for operating cost increases the city will realize increases from these adjustments. We are fairly confident that the franchise fee revenue estimate will be realized. Long-term: The building permits will move up and down with the local economy, primarily centered on the construction industry. During times of economic expansion, as the numbers of permits issued increase and the cost of construction increases, these revenues will increase. Conversely as the economy slows or contracts these revenues will stabilize or decline. An offsetting factor will be the continued rapid growth of the city’s population. The continued growth in population will cause the demand for housing and expansion of commercial buildings to remain at higher levels than they would have otherwise been. The building permit revenues are indicative of future expansion of the property tax base for improvements to real property. If this revenue declines, future appraised and assessed value will reflect minimum growth, with any increases coming primarily from the appreciation of existing property values. Cable TV franchise fees should move upward as the population increases and due to inflation. As the Cable TV franchise raises rates in response to increasing cost of operations, the franchise fee as a percentage of the gross receipts will increase. The franchise fee is a fee on the cable TV franchise, not the consumer. It is a franchise cost of operation. As a cost of operation the cable TV franchise, at its option, may pass along the franchise fee to their subscribers or absorb all or a part of the franchise fee. We are presenting for comparative purposes the actual and estimated fines and forfeiture revenues for FY 2002, FY 2003, and FY 2004.
Chart 4 - 22 Fines and Forfeitures Collection Revenue FY 2002 Period Description Actual Jul-Jun Beer License Fee 5,690 Jul-Jun Fireworks Permits 11,250 Sep-Aug Cable TV Franchise Fee 928,324 Jul-Jun Building Permits 612,735 Jul-Jun Plumbing Fees and 134,127 Permits Jul-Jun Gas Fees and Permits 33,029 Jul-Jun Sign Permits 12,835 Jul-Jun Testing, RE-inspections, 21,710 Etc. Jul-Jun Adult Entertainment Permit 1,130 &L 1,760,830
Permits and Licenses
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FY 2003 FY 2004 Estimated Estimated 5,600 5,600 10,000 10,000 926,500 926,500 568,100 568,100 134,300 134,300 30,000 16,300 20,200
30,000 12,800 20,200
1,200
1,200
1,712,200 1,708,700
Section 4 FEES FOR SERVICES $ 1,536,910 The city tries to recover all or a significantly large portion of many of the services that the city provides to citizens. A significant portion of these revenue sources comes from fees charged for recreational activities. The levels of these revenues are dependent upon disposable income of the area’s families. During economic downturns, we believe that these revenues related to activities of the parks and recreation programs and to the golf courses, would be diverted to other household expenses.
Chart 4-23 Actual and Estimated Fees for Services 1993-2004
Revenues
2,000,000 1,500,000 1,000,000 500,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Year Fees for Services
Linear ( Fees for Services )
OUTLOOK – FEES FOR SERVICES Short-term: A significant portion of this revenue comes from the Golf Courses and the Parks and Recreation Department. These programs review their fees annually. The goal is to recover as much of the cost of providing these services as possible without pricing out the city’s citizens. The revenues of the golf courses and the Parks and Recreation Department are subject to influence of the weather. A significant portion of these revenues is realized during the March through August period. Unusually wet, cool, or hot springs and summers will affect the activities and the revenues of the Golf Courses and the Parks and Recreation Department differently. Loss of greens and fairways will also affect the revenues of the golf courses. Long-term: We believe that these revenues will tend to increase as the population (citizens served) increases and due to inflation. The goal for any fee adjustment will be to recover as much of the cost as possible without the service becoming unaffordable for our citizens.
GRANTS $625,664
Collection Revenue Period Description Jul-Jun HUD-Police Dept Grant-CHA Jul-Jun GREAT Grant Jul-Jun COPS Grant Jul-Jun Grants - Misc.
Chart 4 - 24 Federal Grants FY 2002 FY 2003 Actual Estimated 43,147 32,400 17,058 315,741 94,369
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173,580 63,800
FY 2004 Estimated 51,499 150,000 345,661
Section 4
Collection Period Jul-Jun Jul-Jun Jul-Jun Jul-Jun Jul-Jun
Chart 4 - 24 Federal Grants FY 2002 FY 2003 Actual Estimated
Revenue Description Federal Byrnes Grant STEP Grant DOJ Block Grant HUDRecreations Facilities Summer Lunch Grant Federal Grants
73,789 -
Collection Revenue Period Description Jul-Jun GrantsMiscellaneous. State Grants Jul-Jun Hwy Safety Grant Other Grants
FY 2004 Estimated
84,210 82,800
-
56,097
27,880
-
4,897
25,540
50,000
605,098
490,210
597,160
FY 2003 Estimated 23,790
FY 2004 Estimated 28,504
23,790
28,504
Chart 4 - 25 State Grants FY 2002 Actual 30,141 3,917 34,058
Revenues
Chart 4-26 Actual and Estimated Interest Revenues 1993-2004 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fiscal Year Grants
Linear ( Grants )
OUTLOOK - GRANTS Short-term: Grants are anticipated in FY 2004: Federal: State: Other:
$ 597,160 $ 28,504 $ 0
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Section 4
Chart 4 - 27 Federal Grants Grant Description
Awarded Amount
Safe Neighborhoods Grant (will pay 10% of the 25% local match on COPS grants, leaving the city to pay 15% in local match. Estimated to be approximately $40,000 per year. Fire grants may be available, the city's priorities must match those of the federal government. PENDING WILL AMEND LATER WHEN APPROVED Department of Justice COPS grant Block Grant Bullet-proof vests grants should again be available in FY 2004 STEP (Selective Traffic Enforcement Program) This grant could reach $150,000. In FY 2003, this grant was used to hire 6 officers and radar units. Year 2 grant request has been submitted. Combined total during FY04 could reach 250,635, yr 2 of grant. Total 3 years project. Summer Lunch Program GREAT -Gang Resistance Education and Training - new award for past grant (no match requirement must keep GREAT Program active) Total Federal Grants
40,000 54,776 150,000 80,000 3,000
247,885 50,000 51,499 597,160
Chart 4 - 28 State Grants Grant Description
Awarded Amount
Juvenile Justice Block Grant from Tennessee Commission on Children and Youth (Block Grant for professional services monitoring system) Total State Grants
28,504 28,504
Long-term: The long-term prospects are dependent upon the availability of grants at the Federal and State levels. The city will aggressively apply for grants, however availability is subject to funding at the Federal and State levels. With the State’s funding problems, it is doubtful that the availability of grants from the State will increase above current levels. The Department of Justice continues to provide grants for additional police officers and block grants for other purposes. The continued receipts of these and other Federal grants are dependent upon the appropriations by Congress. The city is aware that these sources may not be available in future fiscal years. MISCELLANEOUS REVENUES $425,165 INTEREST REVENUES: $187,500
Collection Revenue Period Description Jul-Jun Interest
Chart 4 - 29 Interest Revenues FY 2002 FY 2003 Actual Estimated 282,775 187,500
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FY 2004 Estimated 187,500
Section 4
Chart 4 - 30 Actual and Estimated Interest Revenues 1993-2004
Revenues
1,000,000 800,000 600,000 400,000 200,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fiscal Year Interest
Linear ( Interest )
OUTLOOK - INTEREST Short-term: The city’s interest revenues for FY 2004 will be about the same as FY 2003 estimated actual. Due to the short-term nature of the city’s investments, if rates should remain at the current low rates or if they should continue to decline, the interest revenues will decline with the rates. All investments of city funds are at one year or less. Long-term: The interest revenues are dependent upon the available cash and interest rates; these are unknowns in the long-term. MISCELLANEOUS REVENUES: $237,665 Miscellaneous revenues are those revenues that are infrequent. These revenues do not have an identifiable trend. The city knows there will be revenues that are infrequent and for which the amount of the revenues is uncertain. Typically factoring out all know extraordinarily large revenues posted to this category, a reasonable estimate can be developed for this category. Chart 4 - 32 Miscellaneous Revenues Collection Revenue FY 2002 Period Description Actual Jul-Jun Miscellaneous Finance Dept Rev 483 Jul-Jun Misc. Building Maintenance. 11,096 Revenue Jul-Jun Miscellaneous-Non-Taxable 51 Jul-Jun Horse Patrol Contributions 60 Jul-Jun Donations to Police Department Jul-Jun Rental Revenues 73,075 Jul-Jun Mayor's Youth Council Donation 2,040 Jul-Jun Mayors Youth Co 181 Jul-Jun RENT-1 Public Square 89,501 Jul-Jun Drink Machine Purchases (691) Jul-Jun Drink Machine & Other Taxable 1,374 Jul-Jun Sales Tax Collected (248) (Miscellaneous) Jul-Jun Insurance. Reimburse. for Losses 34,120
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FY 2003 Estimated 1,000 1,730
FY 2004 Estimated 500 1,730
370 15,200 1,150 94,785 (430) 1,230 (80)
15,200 94,785 (430) 1,230 (50)
-
-
Section 4
Chart 4 - 32 Miscellaneous Revenues Collection Revenue FY 2002 Period Description Actual Jul-Jun Donations-Fire Dept. Toy Drive 4,156 Jul-Jun Donations-Fire 2,575 Jul-Jun Donations – Misc. 101 Jul-Jun Miscellaneous Revenues 70,144 Jul-Jun Returned Checks 479 Jul-Jun Sale of Surplus Property 175,302 Jul-Jun CBID Sidewalk Improvement 53,143 Jul-Jun Catastrophic Occurrence Revenue Miscellaneous Revenues 516,942
FY 2003 Estimated 1,440 (33,000) (1,740) 55,900 137,555
FY 2004 Estimated 1,440 (1,740) 50,000 75,000 237,665
OUTLOOK- MISCELLANEOUS REVENUES Short-term and Long-term: Miscellaneous revenues are infrequent, unusual, or otherwise cannot be classified within an existing revenue classification. Statistically they will occur, but the amount and when is not known, nor can they be reasonably estimated. A reasonable estimate would be an average over the last three to five years or reviewing the prior year’s miscellaneous revenues and making estimates accordingly.
Chart 4 - 33 Actual and Estimated Miscellaneous or Other Revenues 1993-2004
Revenues
2,000,000 1,500,000 1,000,000 500,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fiscal Year Miscellaneous
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Linear (Miscellaneous)
Section 4
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