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MINUTES <br />City Council <br />July 28, 1993 <br />operations plus the reserve requirement increases for that <br />year. Other money is put into the General Capital <br />Improvement Fund to finance all major Capital Outlay. The <br />City is in the process of building those reserves such that <br />when there is major Capital Outlay, the financing would be <br />in place already as opposed to looking at bonding or some <br />other source of funding. <br />Morelan asked why the budget items vary so much from the <br />actual budget. Voto stated that the details of that are <br />identified in the Annual Financial Report. The City <br />Administrator indicated that the largest variance was on the <br />revenue side. He stated that 96% was budgeted as a <br />collection rate for property taxes due to the concern of an <br />economic down turn which would push the collection rate <br />down. The collection rate came in at 99% so the difference <br />between what was budgeted and what the rate actually was <br />accounts for that surplus. The City Administrator stated <br />that the licenses and permits would have been very close to <br />budget. However, St. Jude and Presbyterian Homes were <br />constructed unexpectedly during the course of the year which <br />generated excess revenues. The City Administrator stated <br />that he had been very conservative on budgeting for <br />interest. Therefore, the revenues came in over budget <br />there. He stated that fines and forfeits were down due to <br />declining fine collections from traffic violations. <br />Currently, the City is conducting a study with the Sheriff's <br />Department on this issue since it seems that whoever <br />contests a tag they receive, gets their fine reduced. The <br />City Administrator stated that an additional $5,000 was <br />received in Local Government Aid last year which was not <br />known about until December. He stated that the balance of <br />the increase in revenue relates to excess tax increment. <br />Morelan asked if the property tax collection rate will be <br />changed this year. The City Administrator stated that this <br />would be up to the Council. He indicated that last year <br />when there was talk of trying to balance the budget, he had <br />stated that the collection rate could be taken to 970. <br />However, the majority of the Council wanted to keep it at <br />96% to play it safe. <br />The City Administrator stated that the other big variance on <br />the revenue side was the other revenue which was generated <br />from basically one time situations. He stated that the <br />Sheriff's Liaison Committee had been reviewing the worker's <br />compensation experience modification with the Sheriff's <br />Department and had found that the experience modification <br />-4- <br />