CERTIFIED - City of Deltona, Florida

Budget Summary - Narrative
City of Deltona, Florida
PROPERTY TAXES – Continued
Although the City has felt the impact of falling property values, residents’ concerns have been heard
and the City has responded accordingly. Although in the past several years the City has experienced
property tax revenue losses in the millions, the City has chosen not to burden City residents with this
decrease in revenue. The chart below illustrates the average City of Deltona property taxes per
household over the last five years. For the amount presented below, for the average Deltona
household, residents continue to get the same level of service including police and fire, parks and
public works.
Average Property Taxes Per Household by Fiscal Year
06/07 07/08 08/09 09/10 10/11
$ 333.47 $ 314.34 $ 308.39 $ 308.65 $ 287.33
Historically, the City maintained its property tax rate at 4.198 mills, the rate set at incorporation on
December 31, 1995, through and including FY 04/05. In FY 05/06 it adopted a rate of 4.15 mills, in
FY 06/07 it adopted a rate of 4.01451 mills, and in FY 07/08 it adopted a rate of 3.2837 mills. In FY
08/09 the City adopted the “rolled-back” rate of 4.15329 mills and again in FY 09/10 adopted the
“rolled-back” rate of 5.43755. In FY 10/11 the City adopted a rate of 6.4464 which is below the
“rolled-back” rate.
The rolled-back rate is the millage rate that would generate the same amount of revenue dollars as the
previous year if applied to the current year’s taxable value (excluding new construction and
annexations). The rolled-back rate is the rate at which there is no tax increase per State law so by
adopting a rate less than the rolled-back rate of 6.9388, the City the has made a conscious decision to
budget property tax revenues $756,000 less than FY 09/10 and has passed that reduction on to City
residents in the form of a tax decrease under Truth In Millage (TRIM) laws. However, the effect on
individual property owners is dependent on the increase or decrease in valuation of their specific
property along with various other factors including Save Our Homes Savings and various other
exemptions. The City has provided an additional $25,000 senior tax exemption for its qualified low
income senior residents, for a total tax exemption of $50,000 for qualified seniors. The City has also
provided the State mandated $50,000 of homestead exemptions to all qualified residents, regardless of
age.
Historically, revenues actually received from property taxes have totaled approximately 95% to 96%
of the actual levy. The City has budgeted property tax revenue this year at 96% of the actual levy.
Therefore property tax revenues are budgeted at approximately $11.6 million for FY 10/11.
OTHER REVENUES
TAXES (Other Than Property)
Electric utility taxes and electric and gas franchise fees generate approximately 26.4% of General
Fund revenues, 16.7% of total Governmental Fund revenues, and 12.5% of total City revenues.
Subsequent to the enactment of the City’s utility franchise ordinance (January 2002) covering electric
services provided by private companies within the City’s jurisdictional boundaries, the City has
realized a growth in revenue from this source both as a percent of revenue and in actual dollars
collected. The City now collects approximately $4.3 million annually in electric and gas franchise
fee revenues. Other franchise agreements cover cable television, telecommunications and solid waste
services.
10/11 Annual Budget
65 Adopted - 9/20/2010