FY2016-17 Budget Final

January 31. State law requires that a penalty be charged on taxes paid after January 31. Delinquent taxes are subject to a 6% penalty and 1% interest. Delinquent taxes not paid before July 1 become subject to an additional 15% penalty. Hotel and Sales Taxes represent approximately 9% of total budgeted revenues for all funds. Sales taxes are collected by retailers and remitted to the State Comptroller's Office for the sale of goods and services within the City of DeSoto. The State returns the portion designated for the City. The City collects 2 cents of the total sales tax collected. One and one half (1.5) cents is used in the General Fund, 3/8 cent is used for the DeSoto Economic Development Corporation and 1/8 cent belongs to the DeSoto Park Development Corporation. Hotel Occupancy tax is remitted directly to the City from hotels within the City based upon 7% of gross hotel room rental revenue. Funds received are budgeted to fund the efforts of the Chamber of Commerce; annual Arts Grants; advertisement and events to attract tourist and visitors to the City. Hotel Occupancy tax revenues are budgeted to increase from the prior fiscal year budget. City staff and the Chamber of Commerce have increased their efforts to promote the City as a destination for sporting events, family reunions, and the arts which has resulted in additional hotel tax revenue in the prior three fiscal years. Franchise Fees are charged to specific businesses that conduct business in the City of DeSoto. Utilities (electric, water, sanitation, telephone, gas and cable) that operate in the City pay this fee for their use of the City's right of way to conduct their business. Franchise fees are based on a percentage of gross receipts. Projections are based on population increase and projected utility use. Franchise fees for the 2017 fiscal year are estimated to be $5,023,290 a slight decrease from the prior year's projected revenues of $5,163,984. Although permits issued for new residential and commercial buildings increased during FY2016, citizens’ usage fluctuates and can be influenced by conservation efforts. Miscellaneous Revenue and other financing sources are generated from a variety of sources. Revenues for lease and rental; auction proceeds; reimbursement of insurance claims and bond proceeds are the significant sources of this revenue. In the current year, approximately $10.7 million is budgeted for miscellaneous revenue to reflect the projected amount of issuances for general obligation and certificate of obligations bonds as detailed in the five year Capital Improvement Plan . Southwest Regional Communications Center (SWRCC) provides police, fire, medical aid and emergency service communications to the cities of Cedar Hill, DeSoto and Duncanville. Participant share revenue to support the Regional Dispatch fund is contributed by the three cities (Cedar Hill, DeSoto and Duncanville) serviced by the operation. All 911 Franchise Fee revenue collected by the three cities will also support its operations. The total budgeted revenue increase is budgeted at approximately 9.55%.to support increased personnel, operational and maintenance costs. In the prior two fiscal years, the Center utilized its fund balance for operations. The current fiscal year’s budget provides for an addition to fund balance. Revenues generated from the alarm monitoring program are expected to remain unchanged from the prior fiscal year. Fiscal year 2017 represents the second year of an operational transfer of $93,000 to the Center’s Stabilization Fund with a projected fund balance of $186,200. The Regional Jail was established to maintain a central location for expedient and professional book-in and detention services of arrested individuals for the police agencies of Cedar Hill, DeSoto and Lancaster in a cost-effective manner. Participant share revenues are the primary funding source for the Regional Jail. Funding for the Regional Jail is budgeted to remain the same as the two prior fiscal years. The Regional Jail has utilized a small amount of its fund balance for operations in FY2016 and budgeted for FY2017.

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