4.0. SR 09-07-1999 - Laserfiche WebLink

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. . . At the 8/30/99 worksession, the Mayor requested information regarding revenues which are generated by various departments. In response to this request, Finance Director Lori Johnson has taken the 9/7 general fund revenues and put them together in a different order. Please see the attached material from Lori. On 8/30/99, the Mayor also requested some information regarding the year end statement for revenues exceeding expenditures. This information is impossible to accurately put together at this time. Better information will be available in December, prior to the setting of the tax levy, however, the December figure will still be an estimate. Historically the city has added to its year end fund balance because revenues exceeded expenditures. It is expected that there will be more revenues received in 1999 than expenditures in the general fund, and at the end of the year the City Council will be requested to make some decisions regarding these funds. The decisions include approving some end of year expenditure requests, transferring funds to cover some capital expenditures, adding monies into designated reserves, or adding money into the fund balance. I support the auditor's recommendation and past City Council action to improve the fund balance in order to help ensure we retain the recently improved bond rating status. I do not support use of a significant amount of the fund balance (or use of excess revenue over expenditures from the current year) in order to balance the budget. The reason is that this money is a non-reoccurring revenue source and becomes very difficult to replace in future years in addition to this practice hurting the fund balance status. At the 8/30/99 worksession, Councilmember Dietz requested additional information regarding adding tax revenues to the general fund budget in order to balance the 2000 proposal. The request was to add $150,000 of additional tax revenue. This additional tax revenue would eliminate a budget gap. This is in addition to the general fund tax monies identified in the 8/30 proposal which already is $167,650 more than the 1999 budget. This 8/30 (and 9/7) tax amount of $3,161,600 reflects no change in the tax rate of 29.324 assuming that the net tax capacity (NTC) grows by 5 percent. We have recently heard from the County Assessor that this 5 percent growth figure is accurate (excluding increases from decertified TIF districts). Please see the attached material from Finance Director Lori Johnson regarding this requested information. It appears that the impact on the tax rate is small for adding the additional tax revenue.