Council approves Public Service Tax on the sale of water to Cocoa residents
City of Cocoa City Council adopts new Public Service Tax in lieu of raising property tax rates to address budget shortfalls.
Considered and evaluated as part of the City’s Strategic Plan, and in an effort to diversify revenue sources and maintain essential and critical public services, the City of Cocoa City Council has determined that a 10% Public Service tax (PST) on the sale of water to inside City of Cocoa customers was needed effective October 1, 2017.
This PST (allowed by s. 166.231, Florida Statutes), is a common revenue source levied by other communities throughout the State and within Brevard County. The PST was initially identified during the City’s Fiscal Year 2015 budget workshops, and has subsequently been evaluated each fiscal year during budget development based on the need to maintain municipal services, such as public safety and infrastructure operations and maintenance, at existing levels.
During the June 29, 2017 FY2018 Budget Priorities workshop and at its August 9th Budget Workshop City Council, in lieu of increasing the property tax rate to cover revenue shortfall, supported levying the Public Service Tax on the sale of water to inside City of Cocoa customers. This will enable the City to further attain its goals of maintaining essential and critical public services and remaining fiscally sustainable long-term.
The PST will be implemented along with targeted reductions in operating costs (12% decrease compared to the current year’s budget). The average increase per month to our residents will be about $2.73, and customers can expect to see the first billing of the PST on their November 2017 utility bill.