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<br />GENERAL FUND REVENUES <br />The modified accrual basis of accounting, as described in the general fund summary, is used to <br />record general fund revenues. The city has several sources from which it derives revenue: <br />~ PROPERTY TAXES: Taxes applied to all taxable property within the city's boundaries are <br />the primary revenue source for the city. This includes current and delinquent property <br />taxes and the fiscal disparities tax, which is based on new commercial and industrial <br />property valuation growth in the metropolitan area The city sets its property tax levy at <br />a level (when combined with other expected revenues) to adequately cover the general <br />fund operating budget. <br />~ LICENSES & PERMITS: Licenses and permits include revenues received from businesses <br />and occupations for activities conducted within the city. <br />~ INTERGOVERNMENTAL• These are shared revenues generally received from the state of <br />Minnesota. <br />LGA: Local Government Aid was established in 1971 as a form of property <br />tax relief. The state uses a distribution formula to calculate the <br />upcoming year's LGA and notifies each city of its share by August 1. <br />HACA: Homestead and Agricultural Credit Aid provides aid to local <br />governments that levy property taxes for lost tax base due to class <br />rate reductions. The Minnesota Department of Revenue notifies <br />cities of their HACA distribution by September 1 of each year. <br />Beginning in 1887, Local Performance Aid (a permanent reduction in <br />the city's HACA) was awarded foe having a system of performance <br />measures in place. HACA was discontinued for 2002 and future <br />years. <br />MSA: Municipal State Aid is distributed through the state's highway user <br />distribution fund and is used for construction and maintenance of city <br />highways and streets. <br />FlRE AID: The city receives state aid for fire services which is passed through to <br />the firefighter's relief association. <br />• <br />~ CHARGES FOR SERVICES: The city collects various administrative fees and also contracts <br />out to the city of Lauderdale for firefighting services. <br />~ FlNES & FORFEITS: These are revenues received from penalties imposed for the violation <br />of laws or regulations. <br />~ MISCELLANEOUS: Other sources of revenue include interest on investments, facility <br />rental, and miscellaneous. <br />~ OTHER FlNANCING SOURCES: Operating transfers into the general fund (see Appendix 2 <br />for the 2004 schedule of operating transfers). <br />~a <br />