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1999 Budget Memo <br />August 31, 1998 <br />Page 4 <br /> <br />Licenses/Permits <br /> <br />This category is projected to increase by $21,200. The major changes include <br />an increase in building permit fees (+$15,000) and plumbing/heating permit <br />fees (+$5,000). <br /> <br />Other Revenues <br /> <br />No changes are projected in this category. <br /> <br />Transfers <br /> <br />This budget category fluctuates more from year to year than any other <br />budget revenue category. The initial 1999 projections show a decrease of <br />$83,300. The adjusted decrease is $54,900, due to the liquor store <br />participation with the City Hall debt being moved out of the general fund. <br />Accordingly, the $54,900 transfers decrease can be found in the cash flow <br />reserve (-$25,700), capital outlay reserve (-$14,150), the street reserve <br />(-$10,000), and the liquor store (-$5,050). As the Council knows, staffis <br />always concerned about becoming too dependent on transfers from reserves <br />as these reserves are finite in nature and limited. Using cash flow reserves is <br />a poor budgeting habit that we try not to do on an annual basis. The capital <br />outlay transfers went down due to (1.) the balancing of the school liaison <br />program and use of D.A.R.E. reserves and (2.) the fact that no election is <br />scheduled for 1999, and therefore, no election transfers are moving into the <br />budget. From a realistic point of view it is understood that some transfers <br />from reserves will have to increase in 1999 from this original projection. <br /> <br />Summa~ <br /> <br />Overall the revenue picture is not very pleasant. Total revenues are <br />projected to increase $178,500. This will not be sufficient to meet our needs. <br />The main source of additional funds will have to be taxes, but some reserves <br />could be added and/or cuts in expenditures will need to be made. Besides the <br />tax class changes/NTC growth issue, we are starting to realize the impact of <br />the COPS FAST revenue going down. This revenue will continue to decrease <br />substantially in 2000 and 2001 and is anticipated to go from $131,000 in <br />1999 to zero by 2001. This will make balancing the budget in 2000 and 2001 <br />difficult. <br /> <br />It should be noted that last year the total tax rate went down in spite of the <br />city and county tax rates going up. This was mainly due to action by the <br />state legislature to increase funding for school districts. At this point we can <br /> <br /> <br />