07-16-92 Council Workshop Minutes

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MINUTES CITY COUNCIL JULY 16, 1992 1993. Voto also noted that the Legislature effectively reduced additional State aid by imposing sales tax on local governments effective June 1, 1992. Another Legislative action requires cities to collect a$5.21 fee from all water accounts to be remitted to the State and used for testing of water supplies. The City has begun collecting this fee with water billings in 1992. Voto noted that State aids represented 20% of the General and Special Revenue Funds in 1991, while property taxes represent 57% and 22% is made up of other sources. Voto pointed out that during 1991 the City received $71,935 in Local Government Aid and $204,061 in Homestead Credits. The City is estimating that it will receive $64,140 in LGA's in 1992 and $224,400 in Homestead Credits. However, Voto noted that there are no guarantees that the State will not reduce these amounts. Voto reviewed the City's tax levy history, noting that the only significant increase was 27% in the 1988/1989. This was due to the State's shift of LGA's from cities to school districts, as well as an increase in the levy for the new fire station. Scalze pointed out that the City's bonded debt is high, and asked what percentage of bonded debt would be more typical. Voto replied that the percentage of bonded debt depends on the age of the city and how much of its infrastructure is financed. Voto noted that the City's bonded debt for 1991/1992 made up approximately 370 of the City's tax levies. Voto noted that in 1982/1983, the City received 20% of each tax dollar collected. This percentage for 1991/1992 is 15%. Voto noted that the County is becoming a larger share of the tax picture. Some of the reason for this is the State's shift of dollars for social programs. Voto noted that the City has basically flat revenues over the past three years, as well as flat expenditures. In reviewing the account balance of the combined Page 2