FY23 FULL BUDGET REPORT ADOPTED

• The estimated percentage of collection will not exceed the percentage of the levy actually realized in cash as of June 30 th during the preceding fiscal year, in accordance with state law. • The tax rate will be set each year based on the cost of providing general governmental services & paying debt service. Consideration will be given to future net revenue requirements for capital improvement project operational expenditure impacts & debt service. User Fees: The Town sets fees that maximize user charges in lieu of Ad Valorem Taxes for services that can be individually identified and where the costs are directly related to the level of service. Emphasis of user charges over Ad Valorem Taxes results in the following benefits: • User Fees are paid by all users, including those exempted from property taxes. • User Fees avoid subsidization in instances where the service is not being provided to the general public. • User Fees are a means of rationing the provision of certain services to assist in offsetting cost. • User Fees for certain services can be justified on the basis of equity & efficiency, by producing information on the demand level for services & by helping to make the connection between the amount paid & the service received. Lost Revenue: When program revenue may be impacted by economic factors/facility closings, a relatively conservative approach will be utilized to forecast revenue to help mitigate these effects. The Town will strategically look for other funding sources to replace lost revenues and offset expenditures.

Other Revenue: All other revenues will be programmed through the annual budget process to meet Town Council’s goals.

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