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City of Laramie Biennial Budget 2013-2014 Page 45 REVENUE HANDBOOK ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 46 CITY OF LARAMIE REVENUE SOURCES: I. TAXES Property Tax (Ad Valorem) 47 Sales & Use Tax 48 Franchise Fees 49 General Purpose Excise Tax (5th Cent Tax) 50 Specific Purpose Excise Tax (6th Cent Tax) 51 II. INTERGOVERNMENTAL REVENUE Cigarette Tax 52 Federal Mineral Royalties 53 Severance Tax 54 Fuel Taxes 55 Supplemental State Funding 56 III. CHARGES FOR SERVICES/CITY OF LARAMIE FEES 57 ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 47 REVENUE CATEGORY: TAXES REVENUE ACCOUNT: GENERAL FUND 100-0000-311-20-00 REVENUE ACCOUNT TITLE: PROPERTY TAX Description: A tax levied according to the assessed value of the property. The taxation rate is based upon mill levies. The mill levy for cities and towns may not exceed eight mills. Mill levies are defined in W.S. §39-13-104. The taxable value means a percent of fair market value. The county treasurer shall keep accurate records of taxes collected for each governmental entity for which a tax levy is made and shall pay taxes collected to the treasurer of each governmental unit. A one-half percent fee is deducted from payments to cities and towns to reimburse county expenditures for collecting taxes for them. Legal Basis: W.S. 39-13-101 through 39-13-111 Current Rate Fee: Gross products of mineral and mines is taxed at one hundred percent (100%), property for industrial purposes is eleven and one-half percent (11.5%) and all other property real or personal is taxed at nine and one-half Collection/Admin: Property owners in the city limits remit the tax to Albany County Treasurer. The county treasurer maintains records of taxes collected for each governmental entity for which a tax levy is made and returns taxes collected to the treasurer of each governmental unit. A one-half percent fee is deducted from payments to cities and towns to reimburse the county for expenses associated with tax collection. Method of Estimation: Property tax (Ad Valorem) revenue is estimated using the City of Laramie’s assessed valuation to determine how much revenue should be raised with an 8 mill levy (the maximum levy the City is allowed by statute) Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $1,671,868 $1,682,619 $1,675,000 $1,700,000 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 48 REVENUE CATEGORY: TAXES REVENUE ACCOUNT: GENERAL FUND 100-0000-322-10-00 100-0000-322-20-00 REVENUE ACCOUNT TITLE: SALES AND USE TAX Description: Sales Tax – The State of Wyoming levies a sales tax upon all sales, purchases, and leases of tangible property sold or leased by persons engaged in the State. There is a 3% levy that shall be paid by the purchaser on all sales and excise tax. Effective July 1, 1993 the state imposed an additional 1% that is administered as if the sales tax rate increased from 3% to Use Tax – A tax levied upon the privilege of persons to use, store, or consume tangible personal property, purchased or leased. There is a 3% levy that shall be paid by the purchaser on all sales and excise tax. Effective July 1, 1993 the state imposed an additional 1% that is administered as if the sales tax rate increased from 3% to Legal Basis: Sales Tax – W.S. 39-15-101 through 39-15-111 Use Tax – W.S. 39-16-101 through 39-16-111 Current Rate Fee: Sales and Use Tax – 4% Fund Distribution: The state allocates the levies for both Sales and Use Tax as follows: 69% of the State’s tax goes to the State General Fund, with 31% going back to local governments. Distribution is determined by computing the percentage that net sales and use taxes collected by the vendors in each county (including its cities and towns) bears to the total net sales collected from all vendors in the state. One percent is deducted for administrative expenses. Collection/Admin: The state shall pay to the treasurers of the counties, cities, and towns for payment to their respective general funds. Method of Estimation: Sales and Use Tax revenues are estimated using trend analysis. General economic trends such as the health of the national, state, and local economy are used to make these estimates. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $4,578,567 $4,813,410 $4,525,000 $4,525,000 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 49 REVENUE CATEGORY: TAXES Description: Franchise Fee – Utility companies pay franchise fees in exchange for the right to operate as a franchise within the city limits. A franchise agreement grants utility companies the right to construct, maintain, and operate utility infrastructure. Legal Basis: W.S. 15-1-103, L.M.C. 1470 & 1591, L.M.C. 172, L.M.C. 1527, L.M.C. 1582 Current Rate Fee: Natural Gas: $0.0142 per therm for gas delivered to residential and commercial customers within the City through Grantee’s distribution. Telephone: 1% of gross revenue, exclusive of revenue paid by the City to the franchise Grantee and of Federal and State excise taxes Electricity: 5% of gross operating revenue Cable Television: 5% of gross revenues Last Revision Date: Gas – July 2000 Electric – November 2001 Telephone – March 1962 Cable – November 2000 Fund Distribution: Collection/Admin: The state shall pay to the treasurers of the counties, cities, and towns for payment to their respective general funds. Method of Estimation: Franchise fees are estimated by analyzing trends that will affect the profits of each utility company. For example, if the population grows rapidly, one can estimate that all of the utility companies will receive more money, which will result in them paying more franchise fees. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $1,462,641 $1,411,385 $1,431,050 $1,431,050 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. REVENUE ACCOUNT: GENERAL FUND 100-0000-312-10-00 - 100-0000-312-40-00 REVENUE ACCOUNT TITLE: FRANCHISE FEES ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 50 REVENUE CATEGORY: TAXES REVENUE ACCOUNT: GENERAL FUND 100-0000-322-11-00 100-0000-322-21-00 REVENUE ACCOUNT TITLE: GENERAL PURPOSE OPTIONAL TAX: 5th CENT SALES TAX Description: General Purpose Excise Tax – By statute this tax must be imposed at a rate in increments of one-half of one percent not to exceed a rate of one This tax must be renewed by the voters every four years and is levied on retail sales of tangible personal property, admissions & services, sales and storage, and upon use and consumption of tangible personal property. Albany County voters renewed a 1% General Purpose Excise tax in 2010. Monies generated by this tax are available for general use by the City. Legal Basis: W.S. 39-15-203a Current Rate Fee: 1% (1 cent/dollar) Fund Distribution: The Dept. of Revenue collects and disperses the monies, keeping a one percent administration fee. It is distributed to cities, towns, and counties according to the 1990 census. Method of Estimation: Sales and Use Tax revenues are estimated using trend analysis. General economic trends, such as the health of the national, state, and local economy are used to make these estimates. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $3,973,549 $3,690,000 $3,875,000 $3,875,000 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 51 REVENUE CATEGORY: TAXES REVENUE ACCOUNT: SPT FUND 350-0000-314-17-00 - 350-0000-362-10-99 REVENUE ACCOUNT TITLE: SPECIFIC PURPOSE OPTIONAL TAX: 6TH CENT SALES TAX Description: Specific Purpose Excise Tax – In addition to the General Purpose Excise Tax, counties can levy a Specific Purpose Excise Tax (the 6th Cent Sales Tax). Both taxes are authorized in W.S. 39-15-204a(i) and (ii), but the proposition to impose each tax must be individually stated and voted upon. Unlike the General Purpose tax, the Specific Purpose tax does not expire after four years. Instead, this tax remains in place until approved projects are fully funded. Specific purpose taxes may not include ordinary operations of local government except those operations that are related to a specific project. No debt may be incurred or approved which, when added to the existing indebtedness of the sponsoring entity or entities, would exceed the constitutional debt limitation of the sponsoring entity or entities. Albany County voters approved a 6th cent tax in 2010 for projects totaling $42 million dollars. The tax will not expire until all projects are funded. Legal Basis: W.S. 39-15-203a (iii) Current Rate Fee: 1% (1 cent/dollar) Fund Distribution: The Specific Purpose Tax money is set to be used for the following: 1) Planning, design, construction, and improvements to the City’s water infrastructure. 2) Planning, design, construction, and improvements to the City’s wastewater infrastructure. 3) Planning, design, construction, and maintenance of street improvements. 4) Planning, design, construction of improvements, and maintenance for the protection of the well head properties in Zone I, and the vulnerable properties in Zone II, as defined in the 2008 Caper Aquifer Protection Plan (CAPP). Also the acquisition of property surrounding the well heads in Zone I and property containing vulnerable features in Zone II. 5) Planning, design, construction, equipment, and improvements for the City’s solid waste disposal facilities. Method of Estimation: Sales and Use Tax revenues are estimated using trend analysis. General economic trends, such as the health of the national, state, and local economy are used to make these estimates. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $1,903,972 $3,304,578 $2,722,000 - *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 52 REVENUE CATEGORY: INTERGOVERNMENTAL REVENUE/STATE SHARED REVENUE ACCOUNT: GENERAL FUND 100-0000-322-30-00 REVENUE ACCOUNT TITLE: CIGARETTE TAXES Description: Wyoming imposes an excise tax of $.006 on each cigarette or 12 cents per package of 20 cigarettes sold by a wholesaler. Distribution rate to the State General Fund is 25.5% of tax collected with 74.5% of the tax collected distributed to incorporated cities, towns and counties where cigarettes are sold. There is also a 20% excise tax on other tobacco products. One hundred percent of this tax is distributed to the general fund. Legal Basis: W.S. 39-18-101 through 39-18-111 Current Rate Fee: Wyoming imposes an excise tax of $.006 per cigarette. Cigars, snuff, and other tobacco products are taxed at a rate of 20% of the wholesale purchase price. Fund Distribution: Thirty-three and one-third percent (33 1/3%) of the taxes collected pursuant to W.S. 39- 18-104 shall be distributed to incorporated cities and towns and to boards of county commissioners in the proportion the cigarette taxes derived from sales within each incorporated city or town or county bears to total cigarette taxes collected. Method of Estimation: Revenue from cigarette taxes is estimated by trend analysis. The trends analyzed include growth/decline of smokers, growth/decline of cigarette sales, and overall economic climate. Collection Variables: Cigarette sales statewide, City sales tax receipts, State sales tax receipts, Legislative action, and rates. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $108,680 $347,508 $375,000 $375,000 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 53 REVENUE CATEGORY: INTERGOVERNMENTAL REVENUE/STATE SHARED REVENUE ACCOUNT: General Fund 100-0000-322-70-00 REVENUE ACCOUNT TITLE: FEDERAL MINERAL ROYALTIES Description: Wyoming Statute provides that 9.375% of the Federal Mineral Royalties received by the State of Wyoming, to incorporated cities and towns to be used for planning, construction or maintenance of public facilities or providing public services. Any city or town may expend these revenues or pledge future revenues for payment of revenue bonds issued to provide public facilities. Pledges of this income for revenue bonds shall not exceed ten (10) years. Fund Distribution: The state distributes funds on a quarterly basis. The state divides the estimated distribution for the year by one-fourth. The annual distribution is reevaluated in October and January of each year, and the October payment is adjusted for any variances. The base payment is usually included in the July payment. One percent of these revenues shall be credited to the state general fund as an administrative fee. Legal Basis: W.S. 9-4-601 Current Rate Fee: Each city or town with a population over 325 receives a $15,000 base payment. For towns under 325 the base payment is $12,000. Estimates are received from forecast by the State’s CREG (Consensus Revenue Estimating Group). The amount to be distributed is based on the municipalities within each county ratio of county school (ADM) Average Daily Membership to the total States ADM. Method of Estimation: The City estimates this revenue source using available information from the State’s CREG. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $710,542 $711,903 $710,542 $710,542 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 54 REVENUE CATEGORY: INTERGOVERNMENTAL REVENUE/STATE SHARED REVENUE ACCOUNT: General Fund 100-0000-322-60-00 REVENUE ACCOUNT TITLE: SEVERANCE TAX Description: This tax is levied by the State on the extraction of oil, gas, and minerals. Depending on revenues, a maximum of $155 million in severance taxes is distributed by varying percentage to the State General Fund, water development accounts, the highway fund, capital construction funds, counties and county road construction funds, and cities. Cities receive 9.25% of the severance tax distribution. State severance tax assumptions: Prices for oil, natural gas, coal, and trona are based on the average gross sales price for all Wyoming production. Production is the total volume of all commodities produced. Legal Basis: W.S. 39-14-201 through W.S. 39-14-802 Current Rate Fee: Coal: Surface Underground 3.75% Crude Oil, Lease Condensate, or Natural Gas: 6% Trona: 4% Bentonite: 2% Uranium: 4% Sand & Gravel: 2% Other valuable deposits: 2% Fund Distribution: The distribution of severance taxes to cities and towns is based on population. Each municipality receives an amount proportional to the percentage of the population of the municipality to the state incorporated population. Collection/Admin: Taxes are now being distributed on a quarterly basis. Estimates are made by the State yearly and adjusted in October for differences of estimated versus actual. Method of Estimation: The City uses the State’s estimate when estimating this revenue. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $1,150,227 $1,130,856 $1,150,227 $1,150,227 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 55 REVENUE CATEGORY: INTERGOVERNMENTAL REVENUE/STATE SHARED REVENUE ACCOUNT: General Fund 100-0000-322-40-00 100-0000-322-50-00 REVENUE ACCOUNT TITLE: FUEL TAXES Description: Tax is levied and collected on all gasoline used, sold, or distributed for sale or use in the state. Legal Basis: Gasoline Tax - W.S. 39-17-101 through 39-17-111 Special Fuel (Diesel) Tax - W.S. 39-17-201 through 39-17-211 Current Rate Fee: Total gasoline tax is fourteen cents per gallon (thirteen cents per gallon plus an additional one cent license tax per gallon). Gasoline sold for use in aircraft is taxed at four cents per gallon. Fund Distribution: The State allocation is as follows: Thirteen and one-half percent (13.5%) distributed to counties for county road fund. Fourteen percent (14%) is credited to state treasurer for the counties’ road construction account. Fifteen percent (15%) shall be distributed to highway fund and amount equal to the cost of technology transfer program or thirty-one thousand two hundred fifty dollars ($31,250.00) whichever is less and the rest distributed to cities or towns of which seventy-five percent (75%) based on taxes paid on gasoline sold in municipality and twenty-five percent (25%) based on the population of each city or town to the total population of towns and cities. Special Fuel (diesel) –calculated the same as above Collection/Admin: The State is responsible for the collection and redistribution of the tax to the city on a basis. Method of Estimation: The City uses the State’s estimate when estimating this revenue. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $568,385 $547,370 $525,000 $525,000 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 56 REVENUE CATEGORY: INTERGOVERNMENTAL REVENUE/STATE SHARED Description: Supplemental State-Shared Revenue: The State Legislature has authorized supplemental funding for cities, towns, and counties for the FY 2013-2014 biennium. The total allotment for cities and towns during the biennium (FY 2013-14) is $52,515,000 . The distribution method is identical to that used during the prior biennium (HB01, Section 325). Projections indicate that the City of Laramie will receive a total of $4,895,887 in supplemental funding for the biennium FY 2013-2014. Hardship Assistance: The State Legislature has authorized an allotment of $4,455,000 to cities, and towns experiencing revenue “hardship” for the FY 2013-2014 biennium. Hardship assistance revenues are distributed to counties, cities, and towns based upon a history of consistently low property tax and/or sales tax collections. Projections indicate that the City of Laramie will receive $2,363,662 in hardship assistance funding in Fiscal Year 2013-2014. (HB01, Section 325). Legal Basis: 2013-2014 State of Wyoming Biennium Budget Fund Distribution: For Supplemental State-Shared Revenue, each municipality receives a base payment of $10,000 (municipalities with population of 35 or less receive a base of $5,000). The remainder payment is distributed in accordance with the municipal supplemental funding formula, with each city or town receiving amounts in the proportion to which the population of the city or town bears to the population of all cities and towns in Wyoming. Collection/Admin: The State is responsible for distribution of the tax to the city on an annual basis. Collection Variables: Sales tax receipts, State revenues, political climate Method of Estimation: The City uses the State’s estimates when estimating this revenue. Occasionally, the City will adjust this estimate if presented with a strong indicator that this revenue will be different than the amount initially estimated by the state. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $3,781,014 $4,600,000 $3,781,014 $3,478,533 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. REVENUE ACCOUNT: General Fund 100-0000-322-71-00 REVENUE ACCOUNT TITLE: SUPPLEMENTAL STATE SHARED REVENUE & HARDSHIP ASSISTANCE ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 57 REVENUE CATEGORY: CITY OF LARAMIE CHARGES FOR SERVICES REVENUE ACCOUNT: GENERAL FUND: 100 REC CENTER FUND: 130 ENTERPRISE FUNDS: 510, 520 REVENUE ACCOUNT TITLE: COL FEES AND CHARGES FOR SERVICE Description: All services provided by the City of Laramie that provide a benefit to individuals or a specific group of citizens rather than the general benefit to all citizens shall charge a fee for use of that service. Fund Distribution: Enterprise Funds - Water Fund (510), Waste Water (510), Solid Waste (520) General Fund - Miscellaneous (100) (Revenue accounts 01-0100) Collection/Admin: Department Head recommends fees to the City Manager. City Council approves fees and each department collects accordingly. Current Rate Fee: Fees and charges for each type of service will be set administratively based on one of four levels of cost recovery as established by city council. Full Cost Recovery – Includes all direct costs and indirect costs including administrative costs from other departments, capital, debt service, and depreciation. This level of cost recovery would typically occur in an enterprise type operation. Water Wastewater, and Solid Waste are the only Enterprise Funds that currently practice this level of recovery. Direct Cost Recovery – Includes all direct costs and may include some indirect costs, including administrative charges from other departments or facility operation and maintenance costs. Partial Cost Recovery – May include all directs costs or can establish a percent of the cost. Less than full cost recovery may also be appropriate as an incentive to increase use or in recognition of user ability to pay. Token – This is a nominal fee that is established without a direct relationship to cost that has a purpose of controlling consumption of a service or covering a cost deemed not appropriate expenditure of public funds. Method of Estimation: In general, the City estimates user fees by analyzing usage data and comparing that to the fees that are charged. For example, to estimate revenue from Recreation Center passes, current rates would be compared with usage data from the Recreation Center. Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $17,192,293 $19,532,720 $22,004,832 $19,401,868 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. ---PAGE BREAK--- City of Laramie Biennial Budget 2013-2014 Page 58 SERVICE FEE SUMMARY: Fund/Department Type of Fees General/Animal Control Boarding, Licensing, and Adoption Fees General/Police Police Protection, DARE, VIN Inspections, UWPD Assistance Grants General/ Police, Municipal Court Parking District Fines, Court Costs, and Fines General/City Clerk Liquor Licenses, Business Licenses General/Parks Facility Rentals General/Cemetery Lot Fee, Perpetual Care Fee, Plot Opening and Closing Fee General/Mosquito Control Mosquito Control Fee General/ Code Administration Building Inspection, Building Permits, Food Licenses General/ Planning Annexation, Permitting, Plan Review Fees General/Fire IMH Ambulance Agreement, Fire Prevention, Inspection, Wildland Firefighting Enterprise/Solid Waste Trash collection and Disposal2 Enterprise/Water Water Base Rate, Consumption Charges, Line Replacement Fee 2 Enterprise/Wastewater Sewer Fee, Garbage Removal Fee, Landfill Fees2 General/Recreation Services Laramie Ice Rink Facility Rentals, Admission, Skate Rentals Recreation Center Facility Rentals, Memberships, Class Fees, & SACC Fees 1. BUSINESS & LIQUOR LICENSES/ZONING & BUILDING PERMITS Business and Liquor License 100-0000-351-10-00 to 100-0000-351-22-00 Building Permits 100-0000-347-10-00 to 100-0000-347-25-00 Zoning 100-0000-344-30-00 to 100-0000-344-40-00 Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $123,415 $125,519 $116,000 $116,000 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited. 2. COURT FINES Court Fines 100-0000-331-10-00 to 100-0000-331-40-00 Collection History: FY 2011 ACTUALS FY 2012 (YTD) ACTUALS* FY 2013 PROJECTED FY 2014 PROJECTED $809,983 $926,727 $805,000 $805,000 *Note: “2012 (YTD) Actuals” are as of 7/25/2012 and are unaudited.