7.1. SR 12-06-2004 - Laserfiche WebLink

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Truth in Taxation fuporl December 6, 2004 Page3 of 4 The property tax amount in the general fund is projected to increase 16.7% and this is very close to the percentage increase in the overall tax levy and the percentage increase in the city NTC... the LGA amount went from $293,150 in 2004 to $686,800 in 2005. In 2004, LGA amounted to 3.7% of the general fund budget and in 2005 this figure has doubled to be 7.4% of the general fund budget... the growth related revenues (building permits, plan check fees, and plumbing/heating permits) collectively are projected at 75% of the amount that was actually received in 2003. In this regard, a slight slow down in construction activities is anticipated. By way of background information, over the past 15 years the city has never issued permits for more than 300 new dwelling units in anyone year. In 2001 and 2002, the city issued permits for 244 new dwelling units in each year. However, in 2003 the city issued permits for 550 new dwelling units. Obviously this is an astounding increase. Furthermore, the city expects to reach the same level in 2004 but a slight slow down in the amount of new permits being issued has been seen toward the end of 2004. The increase in taxes, LGA, and growth related revenues is allowing the city to add personnel that has been put on hold for the last few years. Seven full time and two part time positions have been added in the 2005 budget. However, personnel services, as a percent of the total general fund budget, remains about the same in 2005 as compared to 2004 at approximately 75%. Regarding the expenditures by service activities, there are no changes of significance. Public safety (police, fire, building/ environmental) continues to be the largest expenditure activity with about 47% of the total general fund budget. Other BudlletslProllrams In addition to the general fund, the city has special revenue fund budgets, enterprise fund budgets, and the EDA and HRA budgets. The EDA and HRA tax levies and budgets have already been approved and will not be part of this truth in taxation presentation. The enterprise fund budgets were recendy reviewed and approved by the City Council at the November 15, 2004 meeting. The enterprise fund budgets are the liquor operation, the wastewater treatment system, and the garbage/recycling program. There are no tax revenues associated with these enterprise funds. The special revenue budgets are either funded with tax revenues, city reserves, ot monies generated by specific activities (i.e. ice arena). There are no changes of significance in any of the special revenue budgets and the presentation on these programs is expected to be somewhat brief. It should be noted that the equipment certificate total is funded over a number of years so only a portion of the proposed 2005 expenditure shows up in the tax levy. Conclusion The truth in taxation presentation by staff will be similar to the one last year. This presentation will include a review of revenues and expenditures by categories and activities and will not include a discussion of individual departments or line item details unless requested by the City Council or the public. The presentation will include charts and graphs that display percentages and show relationships and trends. Please see the attached PowerPoint handout. Handouts will be provided so that the public in attendance can follow along with the presentation. s: \ Council \ Pat \Budb'tt \2005 \ truthintaxation.doc