2.0. SR 09-08-1993 - Laserfiche WebLink

Home Browse Search

Budget Work Session Memo September 2, 1993 Page 2 e Some revenue additions are a direct offset to some, or part of some, planned new City expenditures. These new revenues include an increase in the recreation fees by $15,500, a D.A.R.E. contribution of $50,000, a police contract revenue of $14,000 (for mall activity), and an apartment licensing fee of $6,000. The other major revenue increases are mostly development related. The City cannot get too dependent on these development related revenues as the economy could change and so could the amount of revenues generated from these activities. These changes include an increase in administrative project fees by $25,000 (2.5% of public improvement projects to cover City expenses), an increase in plan check fees of $19,000, an increase in building permits by $17,500, and an increase in plumbing/heating permits of $4,800. A few revenue decreases include a $10,000 reduction in interest revenue, a $16,000 reduction in equipment reserve transfers, $5,000 less in police fines, and a $5,000 decrease in EDA contributions to the General Fund. e As previously projected in increase or a The proposed amount. noted, proposed general fund revenues are the amount of $3,372,300. This is a 12.17% $365,900 increase over the adopted 1993 budget. expenditures are $145,800 more than this revenue The proposed general fund revenues include a net tax levy increase of approximately $216,750. This 16% increase in taxes is offset by an increase in the net tax capacity so the affect upon the taxpayers will be much less of an increase. How much of an increase is a guess at this point due to the uncertainty in the growth of the net tax capacity. The amount of the increase will be a major issue for the City Council to consider. 1994 BUDGET ISSUES e As noted in the previous paragraph, one of the most important issues facing the City Council will be a determination on how much tax revenue should be generated. This will be difficult based on the uncertainty as to the growth in the City net tax capacity. However, various scenarios were distributed at the end of the last meeting which showed the net affect on the taxpayers based on some assumed growth rate in the City NTC. What will make the issue even more difficult is the automatic increase in the rural tax rate based on changes in the tax ratio between the urban and rural districts. This rural increase is shown in the attached 1993 tax rate page that was distributed at the 8/30 meeting and which is offered again for City Council review.