CCAgenda_05Nov30_Budget - Laserfiche WebLink

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GENERAL FUND REVENUES ® • The modified accrual basis of accounting, as described in the general fund summary, is used to record general fund revenues. The city has several sources from which it derives revenue: ~ PROPERTY TAXES: Taxes applied.to all taxable property within the city's boundaries are the primary revenue •source for the city. This includes current and delinquetrt property taxes and the fiscal disparities tax, which is based on ~ new commercial and industrial property valuation growth in the metropolitan area. The city sets its property tax levy at a level (when combined with other expected revenues) to adequately cover the general fund operating budget. ~ LICENSES & PERMITS: Licenses and permits include revenues received from businesses -and occupations for activities conducted within the city. ~ INTERGOVERNMENTAL• These are shared revenues generally received from the state of Minnesota. LGA: Local Governmetrt Aid was established in 1971 as a form of property tax relief.. The state uses a distribution formula to calculate the upcoming year`s LGA and notifies each city of its share by August 1. .HACA: Homestead and. Agricultural Credit Aid provides aid to local governments that levy property taxes for lost tax base due to class rate reductions. The Minnesota Departrnerrt of Revenue ~ notifies cities of their HACA distribution . by September 1 of each year. Beginning in 1997, Local Performance Aid (a permanent reduction in the city's HACA) was awarded for having a system of performance measures in place. HACA was discontinued for 2002 and future years. MSA: Municipal State Aid is distributed through the state's highway user distribution fund and is used for construction and maintenance of city highways and streets. FlRE AID: The city receives state aid for fire services which is passed through to the firefighter's relief association. ~ CHARGES FOR SERVICES: The city collects various administrative fees and also contracts out to the city of Lauderdale for firefighting services. ~ FlNES & FORFEffS: These are revenues received from penalties imposed for the violation of laws or regulations. ~ MISCELLANEOUS: Other sources of revenue include iirterest on investments, facility rental, and miscellaneous. ~ OTHER FlNANCING SOURCES: Transfers into the general fund (see Appendix 2 for the 2006 schedule of transfers). •