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<br />Elk River city Council Meeting <br />September 8, 1993 <br /> <br />Page 3 <br /> <br />e <br /> <br />Overall, the revenues are projected to change by catagories in the <br />following amounts: <br /> <br />General property taxes: up $216,750 (16%) <br /> <br />Governmental revenues: up $51,200 (5.8%) <br /> <br />Charges for services: up $100,900 (35.9%) <br /> <br />Fines and forfeits: down $5,000 (-5%) <br /> <br />Licenses and permits: up $27,550 (20%) <br /> <br />other revenues: down 10,000 (-9%) <br /> <br />Transfers: down $15,500 (-8%) <br /> <br />Budget Issues <br /> <br />e <br /> <br />This City Council and staff reviewed some of the budget issues <br />associated with the proposed 1994 budget. These issues include an <br />increase in taxes, wages for employees, personnel additions, capital <br />outlay expenditures, the equipment certificate policy, a storm sewer <br />city-wide fee, assessments for seal coating, and changes in the <br />assessment manual for street projects. <br /> <br />It was noted that a 3% across the board increase in wages is included <br />in the budget, however, this money can be distributed in any manner <br />deemed appropriate by the City Council. It is stated that the City is <br />currently in compliance with the State Comparable Worth law. The <br />Council decided to deal with the wage plan at a later date. <br /> <br />Discussion took place regarding the tax revenues in the projected <br />budget and its affect on the local tax rate. Concern was expressed <br />regarding the growth in the City tax base, and how this growth is <br />off-set by a decrease in the taxes generated by the power plants. It <br />was noted that in 1993, the City's net tax capacity decreased and it is <br />uncertain as to whether or not any growth will be realized in 1994. If <br />there is no change in the net tax capacity in the City, then the budget <br />includes tax revenues that will result in an almost 11% increase in the <br />urban tax rate. On the other hand, if the City net tax capacity <br />increases by 5%, the budget projection shows tax revenues resulting in <br />a 5.6% increase in the urban tax rate. <br /> <br />e <br /> <br />Extensive discussion took place regarding the increase in the rural tax <br />rate as the City has made an adjustment in the urban and rural taxing <br />ratio. This adjustment was required due to a major decrease in the <br />1993 rural tax rate from 17% to 13%. With no change in the amount of <br />taxes generated, this adjustment made by the City Council will result <br />in a tax rate change in the rural district from 13 up to 18. With the <br />increased taxes projected in the draft budget, this would place the <br />1994 rural rate in the 19.6 to 20.6 range. The Council discussed <br />