12-11-91 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL DECEMBER 11, 1991 The Administrator pointed out that the City is proposing a 5.69% increase in its tax rate, which amounts to a.8% increase on a property owner's total tax bill. The City Administrator then presented some graphs, the first one showing a tax capacity rate comparison for all taxing jurisdictions. The next graph presented compared General Fund expenditures for City departments. The Administrator pointed out that the General Fund budget for 1991 was $1,381,998, and proposed for 1992 is $1,408,756, which represents a 1.9% increase. The Administrator pointed out that during 1991 the City took significant cuts in LGA's which had to be absorbed by the General Fund budget through reductions in expenditures. The Administrator also pointed out that in the area of General Fund revenues, the City is dealing with possible decline in interest earnings, building permit revenue, LGA payments, and increased fees associated with the City's recreation program that relate to the hiring of a full-time Parks & Recreation Director as well as other factors. The Administrator reported that recycling grant income to the General Fund is a direct offset on the expense side. The City is also anticipating an increase in HACA credits, which is aid paid to the City by the State. The Administrator reported that General Fund sources of revenue include property taxes, license and permit fees, LGA's, and charges for services. General Fund expenses are up $27,118 from 1992, which is a 2% increase over the 1991 Budget, but actually a 5.5% increase when accounting for the cuts that were made to the 1991 budget. The Administrator reported that the General Fund budget has had to absorb a$34,000 increase in the cost of police protection, as well as a$47,145 increase in the Parks & Recreation Department budget. The Administrator presented a graph comparing the City's debt service levy. The Administrator explained the Council's recent actions in refunding the 1986 storm sewer bonds, which resulted in an interest savings to the City of $110,000 over the life of the bond issue. The Council also called in two bonds with funds on hand from early assessment payments. The result of these actions is the stabilizing of the City's debt service levy through the year 1999, and an immediate reduction of almost $19,000 over what would have had to be levied for debt service in 1992. Page 4