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STAFF REPORT <br /> PAGE TWO <br /> JULY 29, 1993 <br /> REVENUES <br /> The City has received notification from the Minnesota Department <br /> of Revenue that 1994 Local Government Aid(LGA) for the City will <br /> be $596, 874; an increase of $19, 010 compared to 1993 LGA. The <br /> initial estimate of LGA used in the 1994 Revenue Estimates, <br /> obtained from Minnesota House of Representatives Research, was <br /> $1, 392 higher than the amount in our aid notice from the State. <br /> Our Revenue Estimates have been adjusted accordingly. <br /> Estimated 1994 General Fund Revenues of $2,993, 119 are $1, 392 <br /> less than previous estimates as a consequence of LGA <br /> certification discussed above. This is a 0.52% increase over <br /> 1993 Estimated General Fund Revenues. <br /> EXPENDITURES VS REVENUES <br /> Proposed Third Draft 1994 General Fund Expenditures of $3, 162, 156 <br /> are $169, 037 greater than Estimated 1994 Estimated Revenues of <br /> $2, 993, 119. The gap between revenues and expenditures was <br /> reduced $85, 569 between the second and third drafts of the <br /> budget. <br /> POSSIBLE SOLUTIONS <br /> The following options were identified as possible solutions at <br /> the July 19, 1993 Budget Work Session and further analysis of <br /> these options were requested of Staff. <br /> • Possibly use more of the Franchise Fees to balance the <br /> 1994 Budget <br /> • Consideration of increasing the property tax levy <br /> (maximum of 10%) to balance the 1994 budget <br /> • Further expenditure adjustments <br /> Attached is a worksheet showing several combinations of the use <br /> of franchise fees, property taxes, and revenue <br /> enhancements/expenditure adjustments which could be used to <br /> achieve a balanced budget. This worksheet is based upon the <br /> following assumptions: <br /> • The present 1994 General Fund Revenue Estimate includes <br /> a 5% increase in the property tax levy. Any increase <br />