CITY OF SOUTH DAYTONA FISCAL YEAR PRELIMINARY OPERATING AND CAPITAL BUDGET HIGHLIGHTS

CITY OF SOUTH DAYTONA FISCAL YEAR 2017 2018 PRELIMINARY OPERATING AND CAPITAL BUDGET HIGHLIGHTS 1

Citywide Budget Overview 2

CITYWIDE TOTAL BUDGET FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase BUDGET BUDGET (Decrease) (Decrease) General Fund $ 15,278,560 $ 12,857,690 $ (2,420,870) -15.84% Police Confiscated Fund 10,000 7,585 (2,415) -24.15% Parks Improvement Fund 315 - (315) -100.00% Redevelopment Trust Fund 1,210,388 1,330,337 119,949 9.91% Transportation Fund 4,009,673 2,063,417 (1,946,256) -48.54% Capital Project Fund 100,000 - (100,000) -100.00% Utility Service Fund 8,836,149 8,318,400 (517,749) -5.86% Interservice Fund 165,836 165,296 (540) -0.33% Community Trust Fund 22,500 20,000 (2,500) -11.11% Total $ 29,633,421 $ 24,762,725 $ (4,870,696) -16.44% City of South Daytona Preliminary Citywide - All Funds Fiscal Year 2017-2018 Parks Improvement Fund $- 0% Capital Project Fund $- 0% Transportation Fund $2,063,417 8% Utility Service Fund $8,318,400 34% Redevelopment Trust Fund $1,330,337 5% General Fund $12,857,690 52% Interservice Fund $165,296 1% Community Trust Fund $20,000 0% Police Confiscated Fund $7,585 0% 3

CITYWIDE TOTAL REVENUE SOURCES FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase BUDGET BUDGET (Decrease) (Decrease) Taxes $ 6,917,572 $ 7,351,218 $ 433,646 6.27% Licenses / Permits 350,724 378,205 27,481 7.84% Intergovernmental 5,210,045 3,090,637 (2,119,408) -40.68% Charges for Services 9,475,263 9,491,705 16,442 0.17% Fines 35,244 32,400 (2,844) -8.07% Miscellaneous 284,741 115,437 (169,304) -59.46% Other Sources 7,359,832 4,303,123 (3,056,709) -41.53% Total $ 29,633,421 $ 24,762,725 $ (4,870,696) -16.44% City of South Daytona Preliminary Citywide Revenues - All Funds Fiscal Year 2017-2018 Miscellaneous $115,437 0% Other Sources $4,303,123 17% Taxes $7,351,218 30% Fines $32,400 0% Charges for Services $9,491,705 38% Intergovernmental $3,090,637 13% Licenses/Permits $378,205 2% 4

CITYWIDE TOTAL EXPENDITURES BY FUNCTION FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 226,283 $ 226,283 - Personal Services $ 7,963,045 $ 8,035,703 $ 72,658 0.91% Operating Expenses 9,650,915 8,266,237 (1,384,678) -14.35% Capital Outlay 2,649,387 1,588,410 (1,060,977) -40.05% Debt Service 5,382,763 2,531,369 (2,851,394) -52.97% Aid to Private Organizations 10,000 51,955 41,955 419.55% Non-Operating 3,549,097 3,178,415 (370,682) -10.44% Transfer to Reserves 428,214 884,353 456,139 106.52% Total $ 29,633,421 $ 24,762,725 $ (4,870,696) -16.44% Contingency $226,283 1% Non-Operating $3,178,415 13% City of South Daytona Preliminary Citywide Expenditures - All Funds Fiscal Year 2017-2018 Personal Services $8,035,703 33% Transfer to Reserves $884,353 4% Debt Service $2,531,369 10% Capital Outlay $1,588,410 6% Operating Expenses $8,266,237 33% Aid to Private Organizations $51,955 0% 5

FY 2017-2018 major funds: General Fund decreased $2,420,870 or 15.84% primarily attributable to a debt service expense of $1,500,000 and operating expenses attributable to Hurricane Matthew of $1,717,700. This decrease includes an increase in ad valorem taxes dedicated to debt service payments of $166,538. Redevelopment Trust Fund increased $119,949 or 9.91% primarily attributable to costs related to streetscape and streetlight maintenance along US1 of $83,960 as well as an increase in ad valorem taxes dedicated to debt service payments of $37,124. Transportation Fund decreased $1,946,256 or 48.54% attributable to the scheduled debt service on a grant anticipation loan for prior year capital projects including the Lantern Park bridge replacement, Venture Drive traffic signal replacement, and US1 median landscape improvements $1,555,000. Utility Service Fund decreased $517,749 or 5.86% attributable to the completion of prior year grant funded capital projects including Lantern Park stormwater retention pond development, Sherwood Forest stormwater pump replacement, Cutter s Way sewer line extension and Jones St. drainage improvements as well as the purchase of a sewer vacuum truck funded with a bank loan.. 6

Citywide Expenditure Adjustments Florida Retirement System employer contributions increased by 2.3% or $19,840.. Health insurance premiums increased by 4.2% or $36,438. Employees budgeted to receive a 2% wage adjustment plus variable merit of 1.5% for an estimated combined average increase of 3% at an estimated cost of $184,320 including benefits. 7

Future concerns Homestead exemption legislation November 2018 ballot question potentially effects FY 2019-2020 Currently, homeowners receive the original $25,000 exemption plus an exemption for the value between $50,000 and $75,000. Approval of the amendment would mean the first $25,000 and the value between $50,000 and $100,000 would be exempt (does not apply to school property tax levies). The bill provides that the rolled back rate used by local governments in FY 2019-2020 must be calculated as if the tax base had not been reduced by the increased homestead exemption. Per Volusia County Property Appraiser estimated revenue loss of $132,000 in today s dollars. Scheduled debt service increase/balloon payment In FY 2015, the City refinanced three existing notes in order to lower the interest rates on those loans. The original debt included balloon payments on two of those notes. The refinanced note continued those balloon payments as well as incorporated scheduled debt service increases. In FY 2018-2019 there is a scheduled increase of $260,000, equivalent to a year s worth of new revenue. Balloon payment of almost $1.1M is scheduled in FY 2022-2023 to pay off the loan. This loan is allocated to the General Fund and the CRA and both would participate in paying down the loan. 8

Note 117 Amortization Schedule FY Year Due Date Principal Balance 4,109,192.26 Beginning balance 2016 1/1/2016 98,424.56 4,010,767.70 7/1/2016 98,424.57 3,912,343.13 2017 1/1/2017 98,964.30 3,813,378.83 7/1/2017 98,964.29 3,714,414.54 2018 1/1/2018 101,133.54 3,613,281.00 7/1/2018 101,133.54 3,512,147.46 2019 1/1/2019 234,847.76 3,277,299.70 267,428.44 scheduled increase 7/1/2019 234,847.76 3,042,451.94 2020 1/1/2020 239,995.50 2,802,456.44 7/1/2020 239,995.49 2,562,460.95 2021 1/1/2021 245,256.06 2,317,204.89 7/1/2021 245,256.07 2,071,948.82 2022 1/1/2022 250,631.95 1,821,316.87 7/1/2022 250,631.95 1,570,684.92 2023 1/1/2023 256,125.66 1,314,559.26 6/30/2023 256,125.66 1,058,433.60 6/30/2023 1,058,433.60 - balloon total 4,109,192.26 Refinancing of projects originally debt financed US1 Corridor Utility burial Oak Lea Bridge City Hall Community Center James Street 9

Future concerns Personnel needs FISCAL YEAR 2017-2018 Staffing remains below FY 1997-1998 levels while employees continue to maintain levels of services and aging infrastructure. Operating reserve Reserves are budgeted to be 13.30% of operating expenditures by end of FY 2018 meeting minimum policy requirements but falling short of 10%-20% identified in City policy and 15%-20% recommended by GFOA. Hurricane reserve No hurricane reserve exists currently forcing the City to obtain a loan to cover Hurricane Matthew expenses of approximately $1.7 million pending receipt of grant funding. Funding a hurricane reserve is a long-term goal of the City to occur after meeting the operating reserve goal. Capital needs Capital needs continue to grow with needs repeatedly deferred. Limitations on operating expenditures Operating expenditures, including maintenance, artificially constrained. Not keeping up with actual costs or even inflation. 10

Revenue options Dedicated millage of 0.4 mills to avoid the impact of the scheduled debt service increase and balloon payment. Approximately $203,662 annually. Year 1 and 2 funds put into reserve until prepayment penalty expires. Year 3 and beyond funds used to cover scheduled increase and paydown debt. As other debt is paid off, staff recommends keeping debt service constant and applying those payments to this loan as well. If the additional millage were adopted and total debt service kept constant, funds would be available to pay down this loan by its scheduled maturity (6/30/23) without the need to refinance and extend terms. Without the dedicated millage, this loan would likely require refinancing to obtain extended terms due to the balloon payment. This loan is also the only outstanding loan the City has with no prepayment penalty (beginning 10/1/19). Beginning in FY 2023-2024, staff recommends continuing this millage to establish and build a hurricane reserve until an appropriate reserve of $3M is built by FY 2026-2027. Two years provides $1.5M and 4 years provides $3M in hurricane reserve funding. Complete fee review to ensure appropriate fees in comparison with peer group projected revenue impact unknown. Parks & Recreation Building Permits Community Development/Impact Fees Water and Sewer Rate Study 11

Revenue options Increased emphasis on collections and liens Dedicated staff to develop and implement collection procedures First year revenue projection cost of program during setup. Fire assessment fee Strict timelines and requirements Could be implemented FY 2018-2019 Revenue projection varies depending on extent of costs included in fee. Lake Helen implemented $129/residential unit. Total charges annually approximately $220,000. Availability fee water & sewer Temporary seasonal accounts 50 estimated accounts. Vacant/developed properties 100 estimated accounts. Revenue projection at minimum charge approximately $89,000 annually. Garbage contract extension Fee adjustment to implement minimum charge per resident for multi-family on par with existing residential rates Revenue projection unknown to be determined upon approval of final contract language. 12

Dedicated Revenues and Reserve Balances Estimated 9/30/17 Balance Expenditures Balance Public Safety Impact Fees 198,970 (198,970) - Transportation Impact Fees 10,310 (10,310) - Tree Replacement Reserve 160,197 (80,197) 80,000 Total 369,477 (289,477) 80,000 Water Impact Fees 74,873 (62,560) 12,313 Sewer Impact Fees 16,406-16,406 General Fund: 9/30/16 Balance $ 272,069 Net Increase to General Fund Operating Reserves - Prior Years Expenditures 289,477 Addition Due to Debt Financing Received in FY 2017 401,000 Estimated 9/30/17 Balance 962,546 Budgeted Addition FY 2018 400,000 Estimated 9/30/18 Balance $ 1,362,546 Budgeted Operating Expenditures FY 2018 $ 10,247,639 Reserves as a % of FY 2018 Operating Expenditures 13.30% 13

CITY-WIDE FULL TIME EQUIVALENT POSITIONS Department Approved Positions Positions Budgeted Positions Vacant Department Executive 3 3 0 Finance * 6 5 1 Staff Assistant III Community Development 13 10 3 Assistant Community Development Director, Deputy Chief Building Official, Staff Assistant III Human Resources 2 1 1 Human Resources Specialist Other General Government 2 1 1 Custodian Police 36 36 0 Fire ** 14 13 1 Office Manager Public Works - Administration 4 3 1 Assistant Public Works Director Parks and Recreation 14.5 8.5 6 (6) Park Maintenance Workers Community Center 0.5 0.5 0 Community Redevelopment 1 1 0 Transportation 10 4 6 (6) Street Maintenance Workers Water and Sewer Operations 10 5 5 (5) Utility Maintenance Workers Utility Billing 5 4 1 Utility Billing Clerk Internal Service Fund 3 2 1 Mechanic Totals - FY 2017-2018 124 97 27 Totals Totals - FY 2016-2017 ** 124 94 30 Transportation 0 2 (2) 2 Vacant Street Maintenance Workers hired in FY 2017 Police 0 1 (1) 1 Part-time Officer reclassified to Full time in FY 2017 Totals - FY 2017-2018 124 97 27 Totals * In FY 2017, budget amended to fund Accountant rather than UB Clerk previously funded ** Does not include 4 positions funded under Safer Grant through 2013 14

Number of Budgeted FTEs FISCAL YEAR 2017-2018 City of South Daytona Full Time Equivalent Budgeted Positions 140 130 120 110 100 90 98.50 128.00 118.50 122.50 124.00 115.00 115.50 115.50 118.00 110.00 112.00 105.50 108.00 98.00 98.00 98.50 92.50 90.25 93.50 94.00 97.00 80 70 60 50 40 30 20 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1998 Population 13,310 Fiscal Year Ended September 30 2016 Population 12,635 15

Dollar Amount FISCAL YEAR 2017-2018 City of South Daytona Personal Services - All Funds 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1998 Population 13,310 Fiscal Year Ended September 30 2016 Population 12,635 16

Millage Rate and Tax Roll Information 17

COUNTY-WIDE PROPERTY VALUE INCREASES As of January 1, 2017 2017 JUST VALUE % CHANGE 2017 TAXABLE VALUE % CHANGE Rank Taxing Authority 2017 JUST VALUE $ 2017 TAXABLE VALUE $ EXEMPTIONS 1 Edgewater 1,533,356,875 12.52% 838,044,501 11.74% 370,858,936 2 Daytona Beach 7,101,525,874 9.34% 4,356,500,642 10.44% 2,080,412,955 3 DeLand 2,674,693,912 11.41% 1,602,938,528 10.41% 799,107,277 4 Deltona 4,448,705,949 16.08% 2,114,977,451 10.26% 1,276,427,716 5 New Smyrna Beach 5,037,129,665 8.10% 3,436,884,382 8.98% 808,266,824 6 Lake Helen 167,528,094 13.39% 86,679,513 8.33% 47,141,412 7 Ormond Beach 4,757,104,007 8.45% 3,247,814,850 7.89% 855,099,121 8 South Daytona 847,722,338 9.70% 535,951,546 7.72% 186,519,596 9 Oak Hill 189,603,907 5.72% 102,475,841 7.71% 61,709,166 10 Volusia County 49,898,011,673 8.63% 31,172,579,149 7.55% 11,032,700,573 11 Port Orange 4,741,896,085 8.28% 2,990,702,263 7.36% 1,051,841,747 12 Orange City 940,558,341 8.47% 631,380,462 7.28% 231,419,799 13 Pierson 113,093,773 5.75% 48,710,600 7.21% 43,100,103 14 Holly Hill 812,069,107 7.50% 575,808,282 6.78% 158,787,128 15 Daytona Beach Shores 1,797,840,164 3.32% 1,529,007,918 4.19% 127,592,602 16 Ponce Inlet 1,084,851,519 3.80% 819,927,758 4.15% 105,644,515 17 DeBary 2,312,506,620 5.47% 1,662,335,704 3.01% 350,886,569 18

Preliminary taxable valuation has increased $38,400,246 or 7.72% to $535,951,546 Includes net new taxable value of $1,287,514 or 0.26%. Excluding new taxable values, the taxable value increased $37,112,732 or 7.46%. The proposed millage rate is 7.8 mills which is an 11.97% increase over the rolled-back rate of 6.966. The proposed millage rate generates an additional $424,635 over the rolled-back rate. Taxable value increased 7.72% and is the eighth highest in the County out of 17 taxing authorities. Edgewater had the highest increase in the County at 11.74%; Debary had the lowest at 3.01% Just Value increased 9.70% and is the fifth highest increase in the County out of 17 taxing authorities. Residential taxable values increased 8.10% from previous year; Residential taxable values still down 41.88% since peak year of 2007. Total taxable value is $218,846,730 or 28.99% less than 2008, the peak taxable value year of $754,798,276. Majority vote required to adopt. Tax increase advertisement would be required. 19

Ad Valorem Tax Levy Calculation FY 2016-2017 FY 2017-2018 Adopted/Proposed Millage Rate: 7.4000 7.8000 Taxable Value $ 497,551,300 $ 535,951,546 Tax Levy (100%): $ 3,681,880 $ 4,180,422 General Fund $ 3,046,171 $ 3,418,402 Redevelopment Trust Fund $ 635,709 $ 762,020 Ad Valorem Tax Increase From Prior Year (100%) Increased Revenue $ 216,267 $ 498,542 General Fund $ 139,829 $ 340,446 Redevelopment Trust Fund $ 76,438 $ 158,096 Note: Only 95% of Ad Valorem tax revenue is budgeted. 20

Basic Millage Rate Options Millage Rates Tax Levy - 100% Increase Over Rolled-back Rate Total Ad Valorem Revenue General Fund Ad Valorem Revenue CRA Ad Valorem Revenue Total Total Incremental Incremental Increase Levy Increase - 100% Revenue - 95% Rolled-Back Rate 6.9660-3,733,438 3,052,896 680,542 51,558 48,980 Increase/(Decrease) over PY tax levy 51,558 (25,060) 76,618 Vote Required Majority vote/ no tax increase advertisement required Current Rate 7.4000 6.23% 3,966,041 3,243,099 722,942 232,603 220,973 Increase/(Decrease) over PY tax levy 284,161 165,143 119,018 Vote Required Majority vote/tax increase advertisement required Alternative Rate (.2 mills Debt Service) 7.6000 9.10% 4,073,232 3,330,751 742,481 339,794 322,804 Increase/(Decrease) over PY tax levy 391,352 252,795 138,557 Vote Required Majority vote/tax increase advertisement required Proposed Rate (.4 mills Debt Service) 7.8000 11.97% 4,180,422 3,418,402 762,020 446,984 424,635 Increase/(Decrease) over PY tax levy 498,542 340,446 158,096 Vote Required Majority vote/tax increase advertisement required Note: By adopting the Rolled-Back rate, General Fund ad valorem revenue would actually decrease because the CRA percentage of total values is slightly higher than in the previous year. 21

$800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 City of South Daytona Taxable Values 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 January 1 Tax Year $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 City of South Daytona Ad Valorem Taxes Levied 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 January 1 Tax Year 22

Mills FISCAL YEAR 2017-2018 City of South Daytona Adopted/Proposed Millage Rate vs. Rolled-Back Rate Comparison 9.0000 8.0000 7.0000 6.0000 5.0000 4.0000 3.0000 2.0000 1.0000 0.0000 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 Fiscal Year Rolled-Back Rate Adopted Rate 23

COUNTY-WIDE NEW CONSTRUCTION AND ANNEXATION VALUES 1 VOLUSIA COUNTY $ 447,721,917 54.29% 2 DAYTONA BEACH 93,309,182 11.32% 3 NEW SMYRNA BEACH 69,858,003 8.47% 4 DELAND 62,860,766 7.62% 5 ORMOND BEACH 45,830,463 5.56% 6 PORT ORANGE 29,792,640 3.61% 9 EDGEWATER 26,631,986 3.23% 7 DEBARY 16,485,553 2.00% 8 DELTONA 13,888,566 1.68% 10 PONCE INLET 6,880,647 0.83% 11 ORANGE CITY 2,993,546 0.36% 12 HOLLY HILL 2,703,361 0.33% 13 OAK HILL 2,098,115 0.25% 14 SOUTH DAYTONA 1,287,514 0.16% 15 LAKE HELEN 1,238,032 0.15% 16 DAYTONA BEACH SHORES 746,700 0.09% 17 PIERSON 288,151 0.03% $ 824,615,142 100.00% 24

COUNTY-WIDE POPULATION RANK TAXING AUTHORITY POPULATION % OF TOTAL POPULATION 1 Volusia County 114,020 22.12% 2 Deltona 88,922 17.25% 3 Daytona Beach 64,539 12.52% 4 Port Orange 59,315 11.51% 5 Ormond Beach 40,362 7.83% 6 DeLand 31,792 6.17% 7 New Smyrna Beach 25,140 4.88% 8 Edgewater 21,297 4.13% 9 DeBary 20,242 3.93% 10 South Daytona 12,635 2.45% 11 Holly Hill 11,825 2.29% 12 Orange City 11,681 2.27% 13 Daytona Beach Shores 4,291 0.83% 14 Ponce Inlet 3,062 0.59% 15 Lake Helen 2,664 0.52% 16 Oak Hill 1,974 0.38% 17 Pierson 1,694 0.33% TOTAL 515,455 100.00% 25

SOUTH DAYTONA HISTORICAL VALUES TAX FISCAL TAXABLE MILLAGE TAX YEAR YEAR VALUE RATE LEVY 2018 2016-2017 $ 535,951,546 7.80000 $ 4,180,422 2017 2015-2016 497,551,300 7.40000 3,681,880 2016 2014-2015 468,326,087 7.40000 3,465,613 2015 2013-2014 442,812,655 7.40000 3,276,814 2014 2012-2013 428,610,274 7.40000 3,171,716 2013 2011-2012 428,570,070 5.90000 2,528,563 2012 2010-2011 450,961,295 5.90000 2,660,672 2011 2009-2010 488,842,651 5.90000 2,884,172 2010 2008-2009 590,759,487 5.77810 3,413,467 2009 2007-2008 655,030,666 4.92003 3,222,771 2008 2006-2007 754,798,276 4.24930 3,207,364 2007 2005-2006 703,834,686 4.80000 3,378,406 2006 2004-2005 556,516,369 5.54659 3,086,768 2005 2003-2004 468,859,463 5.65000 2,649,056 2004 2002-2003 431,417,683 4.63900 2,001,347 2003 2001-2002 403,518,553 4.63900 1,871,923 2002 2000-2001 391,417,918 4.49870 1,760,872 2001 1999-2000 $ 380,724,815 4.59701 $ 1,750,196 26

SOUTH DAYTONA TAXABLE VALUE CALCULATION JAN 1, 2016 VALUATION JAN 1, 2017 VALUATION DIFFERENCE $ DIFFERENCE % % OF ASSESSED VALUE Just Value $772,780,094 $ 847,722,338 $ 74,942,244 9.70% Assessed Value 679,961,498 722,471,142 42,509,644 6.25% Exemptions $25,000 Homestead Exemption 73,985,949 74,092,380 106,431 0.14% 10.26% $25,000 Homestead Exemption - Amend. #1 Additional 55,168,836 57,301,452 2,132,616 3.87% 7.93% Age 65 and Older Exemption 7,693,625 7,865,207 171,582 2.23% 1.09% Tangible Personal Property - 1st $25,000 Exemption - Amend. #1 5,531,192 5,374,726 (156,466) -2.83% 0.74% Governmental Exemption 18,263,104 19,358,119 1,095,015 6.00% 2.68% Institutional Exemption (Charitable, Religious, Scientific, Literary, Educational) 14,528,750 15,424,899 896,149 6.17% 2.14% Widows / Widowers Exemption 184,000 174,000 (10,000) -5.43% 0.02% Disability / Blind Exemption 6,633,616 6,479,371 (154,245) -2.33% 0.90% Lands Available for Taxes 8,625 - (8,625) -100.00% 0.00% Disabled Veterans' Homestead Discount 400,332 436,398 36,066 9.01% 0.06% Deployed Service Member's Homestead Exemption 12,169 13,044 875 7.19% 0.00% Taxable Value $497,551,300 $ 535,951,546 $ 38,400,246 7.72% 25.82% 27

SOUTH DAYTONA AVERAGE TAX LEVY CLASSIFICATION PARCELS HOME- STEADS JUST VALUE ASSESSED VALUE EXEMPT TAXABLE FY 2017-2018 AD VALOREM TAX LEVY AVERAGE CITY TAX LEVY Agricultural - - $ - $ - $ - $ - $ - $ - Commercial 269 1 124,616,695 122,637,894 2,536,438 120,101,456 936,791 3,482.50 Governmental 75-20,038,392 18,537,998 18,537,998 - - - Industrial 191-27,560,795 27,534,734-27,534,734 214,771 1,124.46 Institutional 19-17,485,578 17,385,437 12,071,938 5,313,499 41,445 2,181.33 Miscellaneous 38-386,970 356,835 1,001 355,834 2,776 73.04 Residential 4,878 2,974 597,676,342 476,712,644 146,672,609 330,040,035 2,574,312 527.74 Vacant 208 3 19,616,738 18,964,772 350,300 18,614,472 145,193 698.04 Tangible Personal Property 1,531-38,029,701 38,029,701 6,313,897 31,715,804 247,383 161.58 Centrally Assessed 83-2,311,127 2,311,127 35,415 2,275,712 17,751 213.86 Totals 7,292 2,978 $847,722,338 $ 722,471,142 $186,519,596 $535,951,546 $ 4,180,422 $ 573.29 28

RESIDENTIAL PARCELS TAX EFFECT SOUTH DAYTONA RESIDENTIAL PARCELS HISTORICAL TAX EFFECT TAXABLE PARCEL AVERAGE MILLAGE AVERAGE INCR. / (DECR.) FYE 9/30 VALUE COUNT PARCEL TAX VALUE RATE PARCEL TAX LEVY FROM PRIOR YEAR 2018 $ 330,040,035 4,878 $ 67,659 7.8000 $ 527.74 $ 27.06 2018 330,040,035 4,878 67,659 7.4000 500.68 37.43 2017 305,304,978 4,877 62,601 7.4000 463.25 30.94 2016 286,723,371 4,908 58,420 7.4000 432.31 28.32 2015 268,103,500 4,911 54,592 7.4000 403.98 11.95 2014 259,852,827 4,905 52,977 7.4000 392.03 77.97 2013 261,094,017 4,905 53,230 5.9000 314.06 (18.07) 2012 275,722,922 4,898 56,293 5.9000 332.13 (28.17) 2011 299,292,057 4,901 61,068 5.9000 360.30 (41.96) 2010 342,031,747 4,913 69,618 5.7781 402.26 36.03 2009 379,330,974 5,096 74,437 4.9200 366.23 (33.42) 2008 460,100,279 4,892 94,052 4.2493 399.65 (65.41) 2007 468,262,664 4,833 96,889 4.8000 465.07 11.14 2006 369,421,654 4,514 81,839 5.5466 453.93 63.89 2005 $ 311,066,758 4,506 $ 69,034 5.6500 $ 390.04 $ 94.97 RESIDENTIAL PARCELS COUNTY-WIDE TAX EFFECT COMPARISON TAXING PARCEL TAXABLE AVERAGE FY 17-18 PROPOSED AVERAGE RANK AUTHORITY COUNT VALUE VALUE OPERATING MILLAGE TAX LEVY 1 Pierson 387 $ 15,170,568 $ 39,200 5.8358 $ 228.76 2 DeBary 8,308 774,728,166 93,251 3.4247 319.36 3 Deltona 33,665 1,776,849,201 52,780 7.8500 414.32 4 Edgewater 9,150 580,773,869 63,473 6.7000 425.27 5 Oak Hill 918 68,837,117 74,986 5.6820 426.07 6 Port Orange 21,317 2,021,601,625 94,835 4.5673 433.14 7 Hollly Hill 4,636 291,574,076 62,893 6.8949 433.64 8 Orange City 2,519 141,369,977 56,121 7.8100 438.31 9 Lake Helen 997 58,359,185 58,535 7.8000 456.57 10 South Daytona 4,878 330,040,035 67,659 7.8000 527.74 11 Daytona Beach 22,904 1,884,497,958 82,278 6.6000 543.03 12 DeLand 9,661 834,242,886 86,352 6.8231 589.19 13 Ormond Beach 16,377 2,261,787,903 138,108 4.2843 591.70 14 New Smyrna Beach 15,816 2,835,848,234 179,302 3.7362 669.91 15 Volusia County 208,028 20,993,229,510 100,915 6.6520 671.29 16 Daytona Beach Shores 6,172 1,313,796,661 212,864 5.2300 1,113.28 17 Ponce Inlet 3,125 $ 758,402,413 $ 242,689 5.6500 $ 1,371.19 29

ALL PARCELS TAX EFFECT SOUTH DAYTONA ALL PARCELS HISTORICAL TAX EFFECT TAXABLE PARCEL AVERAGE MILLAGE AVERAGE INCR. / (DECR.) FYE 9/30 VALUE COUNT PARCEL TAX VALUE RATE PARCEL TAX LEVY FROM PRIOR YEAR 2018 $ 535,951,546 7,292 $ 73,499 7.8000 $ 573.29 $ 29.40 2018 535,951,546 7,292 73,499 7.4000 543.89 36.81 2017 497,551,300 7,261 68,524 7.4000 507.08 28.40 2016 468,326,087 7,240 64,686 7.4000 478.68 25.76 2015 442,812,655 7,235 61,204 7.4000 452.91 12.88 2014 428,610,274 7,208 59,463 7.4000 440.03 93.17 2013 428,570,070 7,290 58,789 5.9000 346.85 (16.68) 2012 450,961,295 7,319 61,615 5.9000 363.53 (29.30) 2011 488,842,651 7,342 66,582 5.9000 392.83 (71.46) 2010 590,759,487 7,352 80,354 5.7781 464.29 27.49 2009 655,030,666 7,378 88,782 4.9200 436.81 (8.60) 2008 754,798,276 7,201 104,819 4.2493 445.41 (11.69) 2007 703,834,686 7,391 95,229 4.8000 457.10 16.70 2006 556,516,369 7,009 79,400 5.5466 440.40 62.34 2005 $ 468,859,463 7,007 $ 66,913 5.6500 $ 378.06 $ 87.89 ALL PARCLES COUNTY-WIDE TAX EFFECT COMPARISON TAXING PARCEL TAXABLE AVERAGE FY 16-17 PROPOSED AVERAGE RANK AUTHORITY COUNT VALUE VALUE OPERATING MILLAGE TAX LEVY 1 Pierson 1,564 $ 48,710,600 $ 31,145 5.8358 $ 181.76 2 Oak Hill 1,954 102,475,841 52,444 5.6820 297.99 3 Lake Helen 2,027 86,679,513 42,762 7.8000 333.54 4 Deltona 41,219 2,114,977,451 51,311 7.8500 402.79 5 Edgewater 13,163 838,044,501 63,667 6.7000 426.57 6 Port Orange 30,499 2,990,702,263 98,059 4.5673 447.86 7 DeBary 11,936 1,662,335,704 139,271 3.4247 476.96 8 Hollly Hill 7,629 575,808,282 75,476 6.8949 520.40 9 New Smyrna Beach 23,033 3,436,884,382 149,216 3.7362 557.50 10 Ormond Beach 24,666 3,247,814,850 131,672 4.2843 564.12 11 South Daytona 7,292 535,951,546 73,499 7.8000 573.29 12 Volusia County 334,476 31,172,579,149 93,198 6.6520 619.95 13 DeLand 16,032 1,602,938,528 99,984 6.8231 682.20 14 Orange City 6,492 631,380,462 97,255 7.8100 759.56 15 Daytona Beach 36,158 4,356,500,642 120,485 6.6000 795.20 16 Daytona Beach Shores 7,776 1,529,007,918 196,632 5.2300 1,028.39 17 Ponce Inlet 3,936 $ 819,927,758 $ 208,315 5.6500 $ 1,176.98 30

City of South Daytona Average Residential Parcel Property Tax Bill $600 $500 $400 $300 $200 $100 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fiscal Year Ended September 30 $600 $500 $400 $300 $200 $100 $0 City of South Daytona Citywide Average Property Tax Bill - All Parcel Types 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fiscal Year Ended September 30 31

COUNTY-WIDE PROPOSED COMPOSITE MILLAGE RATES VOLUSIA COUNTY TAXING AUTHORITY COMPOSITE MILLAGE RATES - FY 2017-2018 PROPOSED RESIDENTIAL RANK TAXING AUTHORITY PARCEL COUNT VOTED DEBT FIRE CONTROL MSD TOTAL 1 DeBary 3.4247 - - - 3.4247 2 New Smyrna Beach 3.7362 0.3750 - - 4.1112 3 Ormond Beach 4.2843 0.2519 - - 4.5362 4 Port Orange 4.5673 0.3402 - - 4.9075 5 Ponce Inlet 5.6500 - - - 5.6500 6 Holly Hill 6.8949 - - - 6.8949 7 Edgewater 6.7000 0.2509 - - 6.9509 8 Daytona Beach 6.6000 0.3729 - - 6.9729 9 DeLand 6.8231 0.2348 - - 7.0579 10 Daytona Beach Shores 5.2300 2.0300 - - 7.2600 11 South Daytona 7.8000 - - - 7.8000 12 Lake Helen 7.8000 - - - 7.8000 13 Orange City 7.8100 - - - 7.8100 14 Deltona 7.8500 - - - 7.8500 15 Oak Hill 5.6820-4.0815-9.7635 16 Pierson 5.8358-4.0815-9.9173 17 Volusia County 6.6520 0.4000 4.0815 2.2399 13.3734 32

Review of Major Funds 33

General Fund Budget Highlights 34

GENERAL FUND TOTAL REVENUE SOURCES FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase GENERAL FUND BUDGET BUDGET (Decrease) (Decrease) Taxes $ 5,368,147 $ 5,677,881 $ 309,734 5.77% Licenses/Permits 350,724 378,205 27,481 7.84% Intergovernmental 3,287,653 2,055,569 (1,232,084) -37.48% Charges for Services 2,150,290 2,163,215 12,925 0.60% Fines 35,244 32,400 (2,844) -8.07% Miscellaneous 241,830 95,437 (146,393) -60.54% Other Sources 3,844,672 2,454,983 (1,389,689) -36.15% Total $ 15,278,560 $ 12,857,690 $ (2,420,870) -15.84% Miscellaneous $95,437 1% Fines $32,400 0% City of South Daytona Preliminary Revenues - General Fund Fiscal Year 2017-2018 Charges for Services $2,163,215 17% Include graph Other Sources $2,454,983 19% Taxes $5,677,881 44% Intergovernmental $2,055,569 16% Licenses/Permits $378,205 3% 35

$800,000 City of South Daytona State Revenues $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fiscal Year Ended September 30 Communications Service Tax Half-cent Sales Tax Municipal Revenue Sharing 36

GENERAL FUND STATE REVENUES Fiscal Year Municipal Revenue Sharing Half-Cent Sales Tax Communications Services Tax 2018 $ 463,000 $ 720,000 $ 372,000 2017 454,560 710,988 418,800 2016 436,898 646,737 446,487 2015 416,898 637,293 447,599 2014 399,395 591,478 467,132 2013 387,208 564,315 506,888 2012 373,172 533,527 556,874 2011 372,309 551,740 558,385 2010 370,724 552,906 598,073 2009 371,741 563,933 572,902 2008 389,115 640,933 650,967 2007 469,017 715,167 593,189 2006 486,594 766,841 593,349 2005 473,374 762,596 582,834 2004 389,398 724,953 577,627 2003 344,469 719,647 574,486 Total $ 6,597,872 $ 10,403,054 $ 8,517,592 37

GENERAL FUND TOTAL EXPENDITURES BY FUNCTION FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase GENERAL FUND BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 190,348 $ 190,348 - Personal Services 7,067,414 7,002,737 $ (64,677) -0.92% Operating Expenses 4,893,426 3,244,902 (1,648,524) -33.69% Capital Outlay 38,224 40,000 1,776 4.65% Debt Service 2,603,195 1,170,312 (1,432,883) -55.04% Aid to Private Organizations - 41,955 41,955 N/A Non-Operating 676,301 600,899 (75,402) -11.15% Transfer to Reserves - 566,537 566,537 N/A Total $ 15,278,560 $ 12,857,690 $ (2,420,870) -15.84% Contingency $190,348 2% Debt Service $1,170,312 9% Capital Outlay $40,000 0% Aid to Private Organizations $41,955 0% City of South Daytona Preliminary Expenditures General Fund Fiscal Year 2017-2018 Graph expenditures Operating Expenses $3,244,902 25% Personal Services $7,002,737 55% Transfer to Reserves $566,537 4% Non-Operating $600,899 5% 38

GENERAL FUND TOTAL EXPENDITURES BY DEPARTMENT FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase ORG DEPARTMENT BUDGET BUDGET (Decrease) (Decrease) 01429 CONTINGENCY $ - $ 190,348 $ 190,348 N/A 01511 LEGISLATIVE 209,417 208,337-1,080-0.52% 01512 EXECUTIVE 672,715 669,362-3,353-0.50% 01513 FINANCE 935,944 616,481-319,463-34.13% 01514 LEGAL 182,132 153,944-28,188-15.48% 01515 COMMUNITY DEVELOPMENT 837,936 953,860 115,924 13.83% 01516 HUMAN RESOURCES 0 157,259 157,259 N/A 01517 DEBT SERVICE 2,521,436 1,102,132-1,419,304-56.29% 01519 GOVERNMENT 71,840 100,018 28,178 39.22% 01521 POLICE 2,998,645 2,977,506-21,139-0.70% 01522 FIRE 1,339,326 1,345,953 6,627 0.49% 01534 SANITATION 1,387,497 1,387,267-230 -0.02% 01541 PUBLIC WORKS 1,916,374 379,043-1,537,331-80.22% 01572 PARKS/RECREATION 1,182,685 1,105,842-76,843-6.50% 01573 COMMUNITY CENTER 65,467 50,038-15,429-23.57% 01574 SPECIAL EVENTS 54,700 61,024 6,324 11.56% 01578 SUMMER/SPRING DAY CAMP 50,799 54,482 3,683 7.25% 01579 RECREATION PROGRAMS 175,346 177,358 2,012 1.15% GENERAL 01581 TRANSFERS OUT 676,301 1,167,436 491,135 72.62% FUND TOTAL $ 15,278,560 $ 12,857,690 $ (2,420,870) -15.84% 39

What's included in the budget? Transfer to reserves to restore reserve balances to 10% $400,000 Transfer to reserves for future debt service $166,537 Funding for Fire/EMS fee and property tax consulting $16,000 Safer Grant Match net of anticipated overtime savings $10,948 Funding for First Step Shelter $30,500 Funding for Hope Place through CDBG program $11,455 Operating Contingency $52,500 Funding for Personal Leave Payout (PLPO) at 75% of eligible costs (limited to 100 hours) $104,400 Air conditioning repairs at City Hall $10,000 Insurance cost for cell tower $1,848 Safety Grant 50% match for specific safety expenditures (body cam storage & water vests for water rescue - river, canal, pond, etc.) $5,000 PIO/Grants Coordinator moved from Finance to Community Development Human Resources Department moved from Finance to its own department Restored funding for pressure washing City Hall complex including roofs $6,000 Munis Needs Assessment for accounts payable/purchasing and payroll (split with Utility Services Fund) $5,000 Payment in lieu of taxes calculated at 9% of revenues $659,564 Transfer from Utility Services Fund increased by $66,332 to $1,459,700 Update to Comp Plan $33,700 (grant funded) Reclassification of Public Works Director to Deputy City Manager no fiscal impact Security cameras at Youth Activity Building $5,000 40

General Fund - Capital Outlay Requests - Funded $ 40,000 Parks and Recreation 4 Electronic scoreboards (grant funded) 35,000 Camera system at the Youth Activity Building 5,000 Capital Outlay Requests Not Funded $ 506,876 Police Department Patrol Vehicle Laptop Replacements (2) 5,000 Exterior Storage for Department Safety Equipment 4,500 Parks and Recreation Replacement A/C at the Youth Activity Building 20,000 Replace lights at James Park T-ball Field 150,000 Replace lights at Riverfront Park Tennis Courts 131,000 Replace backstop & sideline fence at James Park Ball Fields 65,000 Pave part of Parking Area in Reed Canal Park 15,000 Replace Scag 61 Mower 10,612 Replace Artificial Turf under Playground @ Reed Canal Park 66,748 Replace Artificial Turf under Playground @ Riverfront Park 34,816 Install Safety Glass and Doorway in Piggotte Center Office 4,200 41

Contingency $137,848 is budgeted in Reserve Contingency funds $ 10,948 SAFER grant costs $ 10,000 Repair A/C in City Hall $ 104,400 PLPO $ 10,000 Fire/EMS assessment fee study $ 2,500 Liability insurance deductibles $ 54,000 is budgeted in Operating Reserve Contingency funds Projected Unassigned Fund Balance Audited Unassigned Fund Balance @ 09.30.16 $ 272,069 Estimated Additions to Fund Balance @ 09.30.17 Prior Year debt proceeds 401,000 Prior Years expenditures 289,477 Estimated Unassigned Fund Balance @ 9.30.17 962,546 Budgeted Addition to Unassigned Fund Balance @ 09.30.18 400,000 Projected Unassigned Fund Balance @ 9.30.18 $ 1,362,546 Projected Unassigned Fund Balance at 9/30/17 of $962,546 or 9.39% Projected Unassigned Fund Balance at 9/30/18 of $1,362,546 or 13.30% City policy requires Unassigned Fund Balance of 10% - 20% of operating expenditures GFOA recommends Unassigned Fund Balance of 15% - 20% of operating expenditures 42

Redevelopment Trust Fund Budget Highlights 43

CRA TOTAL REVENUE BY SOURCES FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase REDEVELOPMENT TRUST FUND BUDGET BUDGET (Decrease) (Decrease) Taxes $ 1,210,388 $ 1,330,337 $ 119,949 9.91% Total $ 1,210,388 $ 1,330,337 $ 119,949 9.91% City of South Daytona Preliminary Revenues Redevelopment Trust Fund Fiscal Year 2017-2018 Taxes $1,330,337 100% 44

CRA TOTAL EXPENDITURES BY FUNCTION FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase REDEVELOPMENT TRUST FUND BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 6,200 $ 6,200 - Personal Services 125,694 126,721 1,027 0.82% Operating Expenses 29,355 112,586 83,231 283.53% Capital Outlay - 10,650 10,650 - Debt Service 244,800 241,518 (3,282) -1.34% Aid to Private Organizations 10,000 10,000-0.00% Non-Operating 701,612 718,893 17,281 2.46% Transfer to Reserves 98,927 103,769 4,842 4.89% Total $ 1,210,388 $ 1,330,337 $ 119,949 9.91% Transfer to Reserves $103,769 8% City of South Daytona Preliminary Expenditures Redevelopment Trust Fund Fiscal Year 2017-2018 Contingency $6,200 0% Personal Services $126,721 10% Debt Service CRA expenditures graph $241,518 Transfers Out $718,893 54% 18% Operating Expenses $112,586 8% Capital Outlay $10,650 1% Aid to Private Organizations $10,000 1% 45

Community Redevelopment Area (CRA) valuation increased by $11,788,222 or 5.82% to $214,296,312. Fourth consecutive increase after six successive years of decreases. CRA Valuation still down $98,615,404 or 31.52% from peak year (2007 tax year). Total CRA tax increment payments down $816,641 or 24.15% from peak (FY 2007-2008). Combination of lower valuations and reduced millage rates for contributing taxing authorities. Additional ad valorem revenues of $37,124 budgeted for dedicated debt service reserves. 46

SOUTH DAYTONA CRA HISTORICAL TAX INCREMENT REVENUE AS OF JANUARY 1, 2017 GROSS INCREMENTAL VARIANCE OVER BASE YEAR STATUTORY PROPORTION ALLOWANCE NET INCREMENTAL VARIANCE OVER BASE YEAR TOTAL TAX INCREMENT REVENUE ALL TAXING AUTHORITIES FISCAL YEAR TAX YEAR TIF YEAR CRA CERTIFIED VALUE 2017-2018 2017 20 $ 214,296,312 $ 97,694,858 95.00% $ 92,810,115 $ 1,330,337 2016-2017 2016 19 202,508,090 85,906,636 95.00% 81,611,304 1,210,388 2015-2016 2015 18 192,178,613 75,577,159 95.00% 71,798,301 1,071,435 2014-2015 2014 17 184,519,878 67,918,424 95.00% 64,522,503 985,184 2013-2014 2013 16 176,944,748 60,343,294 95.00% 57,326,129 874,628 2012-2013 2012 15 177,652,792 61,051,338 95.00% 57,998,771 788,773 2011-2012 2011 14 184,795,846 68,194,392 95.00% 64,784,672 905,599 2010-2011 2010 13 200,323,551 83,722,097 95.00% 79,535,992 1,099,181 2009-2010 2009 12 258,508,023 141,906,569 95.00% 134,811,241 1,885,685 2008-2009 2008 11 281,564,832 164,963,378 95.00% 156,715,209 1,938,641 2007-2008 2007 10 312,911,716 196,310,262 95.00% 186,494,749 2,146,978 2006-2007 2006 9 284,219,341 167,617,887 95.00% 159,236,993 1,986,147 2005-2006 2005 8 210,518,991 93,917,537 95.00% 89,221,660 1,265,671 2004-2005 2004 7 162,615,354 46,013,900 95.00% 43,713,205 657,781 2003-2004 2003 6 146,914,507 30,313,053 95.00% 28,797,400 383,962 2002-2003 2002 5 139,915,737 23,314,283 95.00% 22,148,569 217,520 2001-2002 2001 4 132,649,698 16,048,244 95.00% 15,245,832 159,848 2000-2001 2000 3 127,627,338 11,025,884 95.00% 10,474,590 111,946 1999-2000 1999 2 122,819,371 6,217,917 95.00% 5,907,021 47,977 1998-1999 1998 1 119,683,863 3,082,409 95.00% 2,928,289 28,277 1997-1998 1997 BASE YEAR $ 116,601,454 N/A 95.00% N/A N/A 47

$350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 City of South Daytona Community Redevelopment Area Taxable Valuation 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 January 1 Tax Year $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 City of South Daytona Community Redevelopment Agency Tax Increment Revenue 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 January 1 Tax Year 48

CITY TAX INCREMENT REVENUE CALCULATION FY 2016-2017 FY 2017-2018 January 1 CRA Valuation $ 202,508,090 $ 214,296,312 January 1, 1997 CRA Base Year Valuation 116,601,454 116,601,454 Gross Incremental Increase 85,906,636 97,694,858 % of Collections (based on FL Statutes) 95% 95% Net Incremental Increase 81,611,304 92,810,115 Millage Rate 7.4000 7.8000 City TIF Payment $ 603,924 $ 723,919 49

What's included in the budget? US1 Median Maintenance and streetlight maintenance (redevelopment plan update required) $83,916 Transfer to Reserves future debt service $37,125 Transfer to Reserves unspecified $66,644 CRA - Capital Outlay Requests - Funded $ 10,650 Community Redevelopment Halifax River and Reed Canal Road Intracoastal dredging consulting and permitting 10,650 50

Transportation Fund Budget Highlights 51

TRANSPORTATION FUND TOTAL REVENUES BY SOURCE FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase TRANSPORTATION FUND BUDGET BUDGET (Decrease) (Decrease) 1-6 Cent Local Option Fuel Tax $ 193,954 $ 198,000 $ 4,046 2.09% 1-5 Cent Local Option Fuel Tax 145,083 145,000 (83) -0.06% Intergovernmental 1,390,224 970,158 (420,066) -30.22% Miscellaneous 5,676 - (5,676) -100.00% Other Sources 2,274,736 750,259 (1,524,477) -67.02% Total $ 4,009,673 $ 2,063,417 $ (1,946,256) -48.54% 1 st Local option fuel tax operating. 2 nd Local option fuel tax - capital City of South Daytona Preliminary Revenues - Transportation Fund Fiscal Year 2017-2018 Other Sources $750,259 36% Add graph Intergovernmental $970,158 47% 6 Cent Local Option Fuel Tax $198,000 10% 5 Cent Local Option Fuel Tax $145,000 7% Miscellaneous $- 0% 52

HISTORICAL LOCAL OPTION GAS TAXES Fiscal Year 6 Cent LOFT 5 Cent LOFT 2018 * $ 198,000 $ 145,000 2017 * 193,954 145,083 2016 191,317 143,969 2015 181,323 132,457 2014 174,117 131,344 2013 174,145 129,683 2012 174,785 130,448 2011 174,227 129,881 2010 175,719 130,148 2009 176,222 133,078 2008 178,653 130,762 2007 187,855 134,854 2006 188,261 133,972 2005 188,512 135,697 2004 174,674 129,070 2003 169,241 126,327 Total $ 2,901,005 $ 2,141,773 * Budget $250,000 $200,000 $150,000 $100,000 $50,000 $0 City of South Daytona Gas Tax Revenues 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 January 1 Tax Year 6 Cents 5 Cents 1st 6 cent gas tax may be used for roadway and ROW maintenance and equipment and drainage, street light installation, operation and maintenance and traffic signs. 2nd 5 cent gas tax may be used for expenditures related to capital when the construction of new roads, reconstruction or resurfacing of existing paved roads, or the paving of existing graded roads are deemed to increase capacity. 53

TRANSPORTATION FUND TOTAL EXPENDITURES BY FUNCTION FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase TRANSPORTATION FUND BUDGET BUDGET (Decrease) (Decrease) Personal Services $ 106,899 $ 173,438 $ 66,539 62.24% Operating Expenses 450,099 352,364 (97,735) -21.71% Capital Outlay 1,577,482 1,264,350 (313,132) -19.85% Debt Service 1,570,000 - (1,570,000) -100.00% Non-Operating 304,757 273,265 (31,492) -10.33% Transfer to Reserves 436 - (436) -100.00% Total $ 4,009,673 $ 2,063,417 $ (1,946,256) -48.54% City of South Daytona Preliminary Expenditures- Transportation Fund Fiscal Year 2017-2018 Non-Operating $273,265 13% Personal Services $173,438 9% Operating Expenses $352,364 17% Transfer to Reserves $- 0% Capital Outlay $1,264,350 61% Debt Service $- 0% 54

What's included in the budget? Funding for two additional staff following cancellation of contractual services in FY 2017 including benefits $82,720 Transportation - Capital Outlay Funded $ 1,264,350 Ridge Blvd. Railroad Crossing Rehab. 102,600 ** US1 / Big Tree Intersection Improvements 20,000 ** US1 / Ridge Blvd. Mast Arm 17,400 ** US1 Median Landscaping 380,190 * Big Tree Road Shared Use Path 657,160 * Railroad Quiet Zone 82,000 * Concrete Mixer 5,000 ** * Denotes prior year carry-over project ** Funded by 1-5 cent gas tax (capital) Transportation - Capital Outlay - Not Funded $ 430,000 Replacement Trucks for Street Maintenance (2) 46,000 Road Resurfacing Magnolia Ave. N & Ridge Blvd. 190,000 Road Resurfacing Kenilworth Ave. 120,000 Road Resurfacing Garfield Dr. 60,000 Replacement Trailers for Mowers & Roller (2) 14,000 55

Capital Projects Fund Budget Highlights 56

CAPITAL PROJECTS FUND TOTAL REVENUES AND EXPENDITURES FY 2016-2017 FY 2017-2018 $ % CAPITAL PROJECTS FUND AMENDED PRELIMINARY Increase Increase Revenues BUDGET BUDGET (Decrease) (Decrease) Other Sources 100,000 - (100,000) -100.00% Total $ 100,000 $ - $ (100,000) -100.00% FY 2016-2017 FY 2017-2018 $ % CAPITAL PROJECTS FUND AMENDED PRELIMINARY Increase Increase Expenditures BUDGET BUDGET (Decrease) (Decrease) Non-Operating 100,000 - (100,000) -100.00% Total $ 100,000 $ - $ (100,000) -100.00% 57

Utility Service Fund Budget Highlights 58

UTILITY SERVICE FUND TOTAL REVENUES BY SOURCE FY 2016-2017 FY 2017-2018 $ % UTILITY SERVICE FUND AMENDED PRELIMINARY Increase Increase Revenues BUDGET BUDGET (Decrease) (Decrease) Intergovernmental $ 532,168 $ 64,910 $ (467,258) -87.80% Charges for Services 7,324,973 7,328,490 3,517 0.05% Miscellaneous 14,420 - (14,420) -100.00% Other Sources 964,588 925,000 (39,588) -4.10% Total $ 8,836,149 $ 8,318,400 $ (517,749) -5.86% Other Sources $925,000 11% City of South Daytona Preliminary Revenues Utility Service Fund Fiscal Year 2017-2018 Intergovernmental $64,910 1% Miscellaneous $- 0% Charges for Services $7,328,490 88% 59

UTILITY SERVICE FUND TOTAL EXPENDITURES BY FUNCTION FY 2016-2017 FY 2017-2018 $ % AMENDED PRELIMINARY Increase Increase Expenditures BUDGET BUDGET (Decrease) (Decrease) Contingency $ - $ 29,735 $ 29,735 - Personal Services 530,666 594,960 64,294 12.12% Operating Expenses 4,218,586 4,501,351 282,765 6.70% Capital Outlay 1,033,681 273,410 (760,271) -73.55% Debt Service 958,253 1,119,539 161,286 16.83% Non-Operating 1,766,112 1,585,358 (180,754) -10.23% Transfer to Reserves 328,851 214,047 (114,804) -34.91% Total $ 8,836,149 $ 8,318,400 $ (517,749) -5.86% Exp graph Transfer to Reserves $214,047 3% City of South Daytona Preliminary Expenditures Utility Services Fund Fiscal Year 2017-2018 Debt Service $1,119,539 14% Non-Operating $1,585,358 19% Operating Expenses $4,501,351 54% Contingency $29,735 0% Personal Services $594,960 7% Capital Outlay $273,410 3% 60

What's included in the budget? Transfer to reserves to improve reserve balances $214,047 Funding for Water and Sewer rate study $25,000 Reserve Contingency funding for Personal Leave Payout (PLPO) at 75% of eligible costs (limited to 100 hours) $29,735 Transfer of Utility Maintenance Worker I from Operations to Utility Billing Part time staffing to focus on receivables, collections and lien processing - (Pilot program) Munis Needs Assessment for accounts payable/purchasing and payroll (split with General Fund) $5,000 and Needs Assessment for Utility Billing $10,000 Payment in lieu of taxes calculated at 9% of revenues $659,564 Bathroom renovation at PW Compound $10,000 NPDES permit renewal $7,988 61

Capital Outlay - Funded Utility Service Fund Water and Sewer Operations $ 243,410 Lift Station Improvements 7,000 Lift Station # 8 US1/Palmetto Replacement 86,000 Waterline Improvements 25,000 Stainless Steel Water Testing Site (Pilot) 4,000 Sewerline Improvements 25,000 Teague Street Sewer Extension 64,910 Vehicle Replacement 31,500 Flood Control $ 30,000 Drainage Improvements 25,000 Fountain @ Lantern Park Drainage Pond 5,000 62

Capital Outlay Utility Service Fund - Not Funded Water/Sewer Operations $ 525,500 Green Acres LS replacement 68,000 LS # 4 pump replacement 20,000 LS valve LS inspection camera 2,000 Portable chlorine booster station 56,000 Pipe locator 5,000 Pipe tapping kit 5,000 Upsize 2" galvanized water line on Slayton Ave. 32,000 Upsize 2" galvanized water line on Bellewood Ave. 50,000 Utility body for Supervisor truck 6,500 Install 3 stainless steel water sampling stations 12,000 Backhoe - Vehicle # 225 - replace a 1997 model 92,000 2 replacement utility body trucks for water/sewer fleet 60,000 Water/sewer dump truck - vehicle # 201 - over 20 years old 50,000 WS139 Diaphragm pump - recently seized 17,000 Sanitary sewer lining 50,000 63

Capital Outlay Utility Service Fund - Not Funded Flood Control $ 377,000 Park of Honor stormwater pond pump replacement 90,000 Reed Canal stormwater control facility rock wall repair 10,000 Reed Canal stormwater facility weir gate manual lift 20,000 Windle Lane pond expansion 257,000 64

Internal Service Fund Budget Highlights 65

INTERNAL SERVICE FUND TOTAL REVENUES BY SOURCE FY 2016-2017 FY 2017-2018 $ % INTERNAL SERVICE FUND AMENDED PRELIMINARY Increase Increase Revenues BUDGET BUDGET (Decrease) (Decrease) Other Sources $ 165,836 $ 165,296 $ (540) -0.33% Total $ 165,836 $ 165,296 $ (540) -0.33% City of South Daytona Preliminary Revenues Internal Service Fund Fiscal Year 2017-2018 Other Sources $165,296 100% 66

INTERNAL SERVICE FUND TOTAL EXPENDITURES BY FUNCTION FY 2016-2017 FY 2017-2018 $ % INTERNAL SERVICE FUND AMENDED PRELIMINARY Increase Increase Expenditures BUDGET BUDGET (Decrease) (Decrease) Personal Services $ 132,372 $ 137,847 $ 5,475 4.14% Operating Expenses 26,949 27,449 500 1.86% Debt Service 6,515 - (6,515) -100.00% Total $ 165,836 $ 165,296 $ (540) -0.33% City of South Daytona Preliminary Expenditures- Internal Service Fund Fiscal Year 2017-2018 Operating Expenses $27,449 17% Personal Services $137,847 83% 67

Internal Service Fund Capital Outlay Not Funded $ 35,000 Solar Message Board 20,000 Vehicle Diagnostic Scanner 15,000 68

Questions? 69

Not done need 17-18 rolled back millage rates FISCAL YEAR 2017-2018 TITLE RANK VOLUSIA COUNTY TAXING AUTHORITY COMPOSITE ROLLED-BACK RATES - FY 2017-2018 PROPOSED RESIDENTIAL TAXING AUTHORITY PARCEL COUNT VOTED DEBT FIRE CONTROL MSD TOTAL Daytona Beach 6.6367 0.3729 - - 7.0096 DeBary 2.9247 - - - 2.9247 New Smyrna Beach 3.5699 0.4000 - - 3.9699 Ormond Beach 4.2843 0.2519 - - 4.5362 Port Orange 4.4542 0.3402 - - 4.7944 Ponce Inlet 5.7900 - - - 5.7900 Holly Hill 6.8949 - - - 6.8949 Edgewater 6.7000 0.2509 - - 6.9509 DeLand 6.9231 0.2348 - - 7.1579 Daytona Beach Shores 5.1590 2.0300 - - 7.1890 South Daytona 7.4000 - - - 7.4000 Orange City 7.4500 - - - 7.4500 Lake Helen 7.8000 - - - 7.8000 Deltona 7.9500 - - - 7.9500 Oak Hill 5.6820-4.0815-9.7635 Pierson 5.8358-4.0815-9.9173 Volusia County 6.6520 0.4000 4.0815 2.2399 13.3734 70