FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

Major Revenue Assumptions (continued)

Transient Occupancy Tax The transient occupancy tax (TOT) is imposed on persons staying 30 days or less in a hotel, inn, motel, tourist home or other lodging facility. The City’s current rate is 10 percent. TOT revenue is projected at $2.8 million and $3.1 million for FY 18-19 and FY 19-20, respectively. The City has greatly benefitted from the activities at the Outdoor Sports Center and the Aquatics Center which host regional events with participants utilizing the City’s hotels and motels. The five-year forecast period assumes steady growth in future years as a result of continued tourism expansion and additional lodging facilities.

The five-year forecast assumes no growth in the out-years.

Development Services Fund (206) The Development Services Fund is a special revenue fund used to account for the collection of planning, building, and engineering fees. The expenditures of these funds are restricted to the costs associated with processing building, engineering and planning applications. FY 18-19 and FY 19-20 revenues are projected to be $4.9 million and $5.3 million, respectively. Revenues collected are completely dependent on the level of development activity. In November 2017 Council adopted an updated user fee study to be phased-in over two years, beginning in January 2018. Even with the updated user fees, the fund is projected to continue to have an annual structural deficit of approximately $450,000. This is primarily due to activity in the Department that generates little or no revenue. The fund is projected to be depleted by FY 21- 22 and will have to rely on support from another fund at that time, if all assumptions related to revenue and expenditure hold true, as described in the Development Services section of the recommended budget. Wastewater Operations Fund (640) The Wastewater Operations Fund receives revenues from user charges based on water usage. All expenditures for the operation of the wastewater (sewer) system, including maintenance and debt service, are charged to the Wastewater Operations Fund. Total revenue for FY 18-19 and 19-20 are budgeted at $10.7 million and $11.3 million, respectively.

Transient Occupancy Tax

$10 $12 $14 $16 $18 Millions

$- $2 $4 $6 $8

Street Fund (202) The Street Fund is a special revenue fund used to account for the receipt and disbursement of State and Federal gas tax and grant monies, and other monies that are to be used for the maintenance, repair, and design of streets. State gas tax funds are distributed to cities based on population from gas taxes collected at the point of sale. The use of gas tax funds is restricted to street expenditures by State and Federal laws. Revenues for street maintenance are realized in this fund and are then transferred to the General Fund. In FY 18-19 and 19-20, gas tax revenues are expected to stay fairly flat at approximately $0.7 million.

BUDGET SUMMARY 87