On the Wednesday, the City of Tallahassee will hold a budget workshop to discuss the FY2020 budget and to provide a FY2019 second quarter budget update.
The city’s budget staff reports that the key assumptions driving the FY2020 estimates are that the millage rate will remain at 4.1000 mills consistent with the past four years, the general fund reserve target remains at two months operating expenditures, operating costs will be held at 2019 levels and employee raises will be consistent with the FY19 budget and collective bargaining agreements.
Budget staff reports that the FY2020 general fund tax collections are expected to increase by approximately $3.2 million over FY2019 levels. An increase of $2.7 million -approximately 6% over 2019 – in property tax revenue makes up the majority of this new revenue. The increase is driven by an increase in property values.
In addition, there is a $245,098 increase in sales tax revenue and $256,959 increase in state revenue sharing.
The analysis does note a significant $2.4 million reduction in revenues to the general fund from sources like grants, service charges and overhead allocations.
On the expenditure side, the analysis estimates that major driver of increased spending is $1.2 million in personnel services.
With regards to the FY2019 update, the budget staff reports that updated revenue projections in the general fund indicate that revenues and expense will be less than budgeted. Collections through the first half of FY2019 indicate that total revenues for FY2019 will be approximately $155 million, with expenses projected to finish at $156 million.