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Property taxes and intergovernmental revenues combined account <br /> for 84.8% of the City's General Fund revenues. The level of <br /> those two revenues are controlled by the State of Minnesota <br /> through property tax levy limitation laws and by the levels of <br /> funding of local government aids and homestead credits, which <br /> are the two largest sources of intergovernmental revenues the <br /> City receives. In recent years the State Legislature, in an effort <br /> to solve the State's fiscal problems, has reduced the amount of <br /> local government aids given to the City and severely limited the <br /> City's ability to levy property taxes. Such actions by the State <br /> Legislature dramatically affect the City's ability to provide <br /> services to its residents since intergovernmental revenues and <br /> property taxes account for 84.8% of total General Fund revenues. <br /> Other revenue sources used to finance governmental services are <br /> licenses and permits and user fees. A review of the adequacy of <br /> licenses, permits, and other fees is conducted annually. As a <br /> result of such reviews fees have been increased periodically in <br /> order that they may recover the cost of providing the particular <br /> service. Such actions have lessened the City's reliance on <br /> property taxes and intergovernmental revenues. The City will <br /> continue to review fees and to investigate other revenue sources. <br /> One area in which the City has worked to lessen reliance on <br /> property taxes is Parks and Recreation. Recreation programming <br /> is accounted for in the Recreation Activity Fund. Over the past <br /> few years many costs which formerly had been supported by <br /> property taxes and paid from the General Fund have been <br /> transferred to the Recreation Activity Fund. Such costs include <br /> personnel, materials and supplies, and equipment needed for <br /> recreational programming. In addition fees charged participants <br /> of recreation programs have been increased with the goal of <br /> making the programs self supporting. In doing this the City has <br /> sought to maintain a balance between the necessity to reduce <br /> reliance on property taxes and the affordibilty of recreation <br /> programs. <br /> The City will continue to investigate the feasibility of financing <br /> various other services with user fees. All statutorily authorized <br /> user fees will be considered. <br /> 36 <br />