Laserfiche WebLink
12 <br />SECTION 5 - REVENUE <br />Purpose <br />The City is committed to managing public revenues in a manner that provides maximum <br />service value to the community and ensures a diversified and stable revenue system. Revenue <br />sources will be matched with appropriate expenditures to ensure adequate long-term resources <br />to fund various municipal programs and services. Additionally, user fees will be designated to <br />the funds they are used to support (i.e. Park charge fees will be designated to the Parkland <br />Acquisition Fund). Any deviation from this policy must be pre-approved by the City Council. <br />Property Tax Policy <br /> <br />Property taxes are the most important source of revenue for both services and capital investment. <br />In managing property taxes, the City will seek a balance between providing appropriate level of <br />services, maintaining infrastructure, and affordability for residents. The following considerations <br />and procedures will be used to comply with this policy: <br /> <br /> Property tax planning shall seek to identify future opportunities such as changes in the tax <br />base, and the impact of levy supported debt. <br /> Forecasting future valuation is an essential element of financial planning, but a difficult <br />task. Taxable property valuation depends on many variables — actual development, <br />statutory tax capacity rates, use of tax increment financing, operation of the fiscal <br />disparities system, and County valuations. <br /> The City will seek a balanced tax base through support of a sound mix of residential, <br />commercial, and industrial development. <br /> City planning efforts will be impaired by a lack of local control over the property tax <br />system. Legislative changes in the property tax system and other elements of local <br />government finance require on-going adjustment to plans and projections. Future possible <br />property tax reform may enhance or limit the future ability to use property taxes. <br /> Planning must account for the likelihood that the ability to levy general property taxes will <br />be subject to some form of limitation in a future year, such as Levy limits. <br /> <br />Other Revenues Policy <br /> <br />The City will maintain a diversified and stable revenue system to shelter it from short-run <br />fluctuations in any one revenue source. The City will conservatively estimate its annual revenues <br />by an objective, analytical process. All existing and potential revenue sources will be re-examined <br />annually. The following considerations and procedures will be used to comply with this policy. <br /> <br /> The total sum appropriated for the General Fund shall be less than the total estimated <br />revenue by a safe margin. It is the policy of the City that this “safe margin” will allow for <br />property tax collections of 97.5% in any given budget year. <br /> Financial planning should consider the instability of intergovernmental sources and the <br /> the limits and demands on property taxes. Therefore City must continue to make effective <br />use of fees, charges, and other non-tax revenues. <br /> Planning must recognize the relationship between finance and community development. <br />Significant fee revenue associated with redevelopment and commercial expansions should