Agenda Packets - 1991/11/12 - Laserfiche WebLink

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BACKGROUND INFORMATION It's no secret that many factors outside the control of the City have dealt a painful and potentially debilitating blow to the City's ability to maintain current and future service demands at current and projected decreasing revenues . Mid year unanticipated cuts to the City's previously promised Local Government Aid, the reclassification of real estate property tax rates, the State of Minnesota's yearly and costly mandates, as well as absorbing revenue generating programs previously conductcd by citics resulting in dccrcaccd =venues for cities, levy limits, the elimination of the annual inflation factor, future mid year Local Government Aid cuts and eventual elimination of the aid system as we know it, has prompted the City to explore the following revenue programs: 1. Street Light Utility 2 . Utility Franchise Fees The advantages of implementing of one or both of these proposed programs include: General 1. Movement toward the nation-wide trend of user fee programs and activities. 2 . Implementation of fee-based revenue programs which shift the tax burden from one's real estate value and the tax imposed upon such property -- over which the taxpayer has little or no control-- to user activities over which the consumer has some measure of control. 3 . Allow flexibility of funding service and program activities of the City. In the case of the franchise fees, the City would have the flexibility to use the monies for General Fund Operation (police, fire, streets, and recreation) . The street light utility is a restricted use revenue source designated only for the construction, lighting and maintaining of street lights . Street Light Utility 1. Make it possible for the City to transfer the cost of installing, lighting and maintaining street lights from the General Operating Fund and free up monies to thereby reinstate portions of or terminated programs or services .