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General property taxes increased in 2002 reflecting the growth in the tax base of the City and the additional
<br />service needs arising from that growth. The City issued building permits for 2 major commercial buildings in
<br />2001 which inflated the permit revenue for that year; accordingly, licenses and permits decreased in 2002,
<br />although building permits issued for new housing continued at a strong pace. The state legislature enacted a new
<br />Market Value Homestead Credit Aid in 2002 that accounts for the marked increase in intergovernmental revenue.
<br />A change in policy relating to administrative charges for processing of development applications accounts for the
<br />decrease in service charges. In the past a flat 3% of the contract cost was charged for administrative purposes.
<br />Starting in 2002 the actual cost of providing administrative services was charged to the developer, which resulted
<br />in lower administrative revenues. Fines and forfeitures decreased slightly due to a reduced emphasis on traffic
<br />enforcement employed throughout the year. Decreases in refunds and reimbursements and cable TV franchise
<br />fees and the receipting of revenue from the sale of used equipment into a equipment replacement revolving fund
<br />resulted in a reduced miscellaneous revenue in 2002. Investment earnings were lower in 2002 due to
<br />dramatically lower interest rates in response to a sagging economy. The Federal Reserve lowered the federal
<br />funds rate 12 times in 2001 and 2002.
<br />General fund expenditures totaled $6,213,645 in 2002 compared to $5,808,265 in 2001. The breakdown of
<br />expenditures is shown in the following table:
<br />2002 2001 $ Change % Change
<br />General Government $1,982,096 $1,871,615 $110,481 5.90%
<br />Public Safety 2,519,152 2,246,146 273,006 12.15%
<br />Public Works 872,193 868,289 3,904 0.45%
<br />Parks and Recreation 696,511 663,360 33,151 5.00%
<br />Conservation of Natural Resources 122,490 158,855 (36,365) (22.89 %)
<br />Other - Contingency 21,203 -0- 21,203 100.00%
<br />Total
<br />$6,213,645 $5,808,265 X105,380 6.98%
<br />Personnel costs drove the majority of the increase in expenditures across all categories in 2002. Salaries and
<br />wages increased an average of 3% and medical insurance premiums increased by 26 %. This was the primary
<br />reason for the increase in the General Government category. Energy costs and contractual services to update the
<br />zoning and subdivision codes also contributed to the increase. Public safety increased mainly due to higher
<br />personnel costs, including the addition of a patrol officer and a building inspector, additional capital outlay
<br />expenditures and increased fire contract costs. Public Works costs were fairly stable in 2002, with higher labor
<br />costs being offset in other expenditure categories. The increase in Parks and recreation expenses was primarily
<br />due to labor costs. Lower contractual expenditures for tree maintenance and environmental purposes were the
<br />principal reasons for the decrease in the Conservation of Natural Resources area in 2002. The `Other' category is
<br />the expenditure of contingency funds that the City has budgeted for unforeseen circumstances. The fund balance
<br />of the General fund continues to grow as shown below:
<br />Expenditure Fund Balance Percent
<br />Budget Beginning of Year of Budget
<br />1993 2,829,202 1,406,296 49.71%
<br />1994 3,169,862 1,756,659 55.42%
<br />1995 3,551,957 1,870,934 52.67%
<br />1996 3,966,738 2,086,231 52.59%
<br />1997 4,400,087 2,723,025 61.89%
<br />1998 5,524,646 3,057,912 55.35%
<br />1999 5,252,474 3,411,332 64.95%
<br />2000 5,601,671 3,434,474 61.31%
<br />2001 6,056,426 3,541,596 58.48%
<br />2002 6,751,953 3,924,669 58.13%
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