Revenue Trends


Property Taxes

The July 1 Taxable Value increased by 17.88% over FY 2022-23 generating $8.5 million in additional ad valorem revenue bringing the total property tax revenue for the Adopted FY 2023-24 to $61,473,485 excluding the tax increment financing payment to the CRA.

Franchise Fees


The City grants authorization to companies to provide electric, gas and towing services within the City limits in exchange for a franchise fee that is derived from customer charges. The companies generally pass these fees directly on to the consumers. Franchise fees provide revenue to the General Fund for ongoing operations. The franchise fee rate for electric is 5.9% and payments are affected by changes in both the base rate and the fuel surcharge. The gas franchise fee paid to the City is based on 6% of the company’s gross revenue, less specific adjustments. Other franchise fees are set dollar amounts pursuant to contractual agreements. Most of this revenue is derived from the electric franchise fee and has been conservatively budgeted.


Projection Methodology: The main factor considered in projecting this revenue for the existing sources is the historical trend. In previous years the City remained conservative in projecting the franchise fees revenues and are estimating the FY 2023-24 Adopted budget 20.5% above the FY 2022-23 adopted budget.

Franchise Fees – Electricity


The City grants authorization to Florida Power & Light (FPL) to provide electric service within the City limits in exchange for a franchise fee that is derived from customer charges. FPL passes this fee of 5.9% on to the consumer by adding it directly to the monthly electric bill. The franchise fee payment is affected by both base rate and fuel surcharge changes made by FPL.


Projection Methodology: The Adopted is based on prior year actuals with an increase in $700,000 in revenues totaling $3,200,000 or 28% increase for the Adopted FY 2023-24 due to customer growth.

Public Service Taxes - Total (Includes, Gas, Electricity and Water)


The City levies a 10% public service tax on consumers for the purchase of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled, and water services within the City. The payments are made by the utility end users to the service provider and then remitted to the City. The electric public service tax payment is only affected by base rate changes, not fuel charge changes by Florida Power & Light (FPL). These taxes provide revenue to the General Fund for ongoing operations with the largest portion coming from the electric public service tax (approximately 77%).


Projection Methodology: The revenue rate increased by $1,064,590 for the Adopted FY 2023-24 due to an increase in the utility rates.

Public Service Tax – Gas


The City levies a 10% public service tax on consumers for the purchase of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled, and water services within the City. The payments are made by the utility end users to the service provider and then remitted to the City. The electric public service tax payment is only affected by base rate changes, not fuel charge changes by Florida Power & Light (FPL). These taxes provide revenue to the General Fund for ongoing operations with the largest portion coming from the electric public service tax (approximately 77%).


Projection Methodology: The revenue remains flat for the Adopted FY 2023-24.

Public Service Tax – Electricity


The City levies a 10% public service tax on the electric utility payments made within the City, through FPL. The electric public service tax payment is only affected by base rate changes, not fuel charge changes by FPL; as fuel charges are exempt from public service taxes. This tax provides revenue to the General Fund for ongoing operations and is the largest portion of the public service taxes.


Projection Methodology: The Adopted is based on prior year actuals with an increase in $700,000 in revenues totaling $4,300,000 for the Adopted FY 2023-24.

Public Service Tax – Water


The City levies a 10% public service tax on the total amount of water usage the City charges to its customers monthly. This tax provides revenue to the General Fund for ongoing operations.


Projection Methodology: The revenue rate increased by $362,590 for the FY 2023-24.

Licenses and Permits – General Fund


Licenses and permits, the revenue in the General Fund includes Business Tax Receipts, which are fees charged to all businesses, occupations and professions operating in the City. These license fees vary based on the type of business operated. Also included in the General Fund are zoning fees such as hotel registration fees and temporary use permits; and code enforcement fees such as vacation rental registration fees, foreclosed property registration fees and vacant property/lot registration fees.


Projection Methodology: The Adopted is slightly lower than prior years due to the decrease in the business tax receipt fees that were adopted by Commission in June of 2023 with an implementation date of October 1, 2023.

Intergovernmental Revenue – General Fund


State Shared Revenue: The City receives revenue distributions from the State of Florida that are shared with local governments. These revenue sources include the City’s portion of the state half-cent sales tax, sales and use tax collections from the Revenue Sharing Trust Fund for Municipalities, alcoholic beverage license taxes, cardroom penny ante poker taxes, mobile home license taxes and motor fuel taxes.


Municipal Revenue Sharing: The Florida Revenue Sharing Act of 1972 established a Revenue Sharing Trust Fund for Municipalities wherein a portion of the sales and use tax revenue collected by the State is returned to eligible counties and local municipalities. To be eligible to participate in the revenue sharing, a municipality must meet strict eligibility requirements.


City Portion of Half-Cent Sales Tax: Authorized in 1982, the Local Government Half-Cent Sales Tax Program generates the largest amount of revenue for local governments from State revenue sources. The revenue is distributed to counties and municipalities based on a population driven allocation formula and strict eligibility requirements must be met. The Program’s primary purpose is to provide relief from ad valorem and utility taxes in addition to providing counties and municipalities with revenues for local programs.


Projection Methodology: The largest reduction in intergovernmental revenue can be attributed to ARPA funds which are being Adopted to be appropriated in FY 2023-24 in the ARPA funds. The other slight decreases can be attributed to a decrease in sales tax revenues.

Communication Service Tax


The Communication Service Tax applies to telecommunications, cable, direct-to-home satellite, video, and related services. The tax is imposed on retail sales of communications services which originate and terminate in the state and are billed to the City’s residents. The Florida Department of Revenue is responsible for the administration of this tax which is comprised of two sources, the Florida communications service tax, and the local communications service tax. The local communications service tax for the City of Hallandale Beach is 5.22%. These taxes provide revenue to the General Fund for ongoing operations.


Projection Methodology: The FY 2023-24 Adopted budget includes a slight increase of $107,092 due to trend analysis using prior year data.

Fire Assessments


The revenue generated from the Fire Assessment Fee (a non-ad valorem tax), which is charged annually, funds a portion of the cost of providing fire protection services to properties within the City that derive a special benefit from the availability of these services. Property types are assigned based on their designation by the Broward County Property Appraiser’s Office and the fee is apportioned according to the number of non-medical calls dispatched to that property type in comparison to other property types. No costs for Emergency Medical Services (EMS) and Ocean Rescue are funded by this assessment.


The residential rate remains unchanged at $265.06 as approved by the City Commission. The fire assessment rates recover ninety-five (95%) of the total fire Adopted service costs budgeted. The remainder of these costs are funded by General Fund revenues. The City is looking into completing a fire assessment study to prepare an update to the fire methodology and report.


Projection Methodology: The Adopted revenue is based on the ad valorem tax roll of property types, assuming a slight increase of $157,940 for Adopted FY 2023-24.

Slots Revenue


A Gross Slots Revenue percentage is imposed on the City’s pari-mutuel facilities (Gulfstream and the Big Easy Casino) based on an Agreement executed between each pari-mutuel facility and Broward County. The FY 2023-24 proposed budget includes $1,600,000 from this source.


Projection Methodology: The Adopted budget is based on prior year actuals after COVID and the Agreement between each pari-mutuel and Broward County.