Agenda Packets - 1991/07/01 - Laserfiche WebLink

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REVENUE ASSUMPTIONS FOR THE 1992 BUDGET o Property tax collections are estimated to be 99.5% of the amount levied. This estimate is based upon collection rates for the past ten years. o Licenses and permits are estimated by looking at the trend of collections for the past three, five, and ten years and reviewing recently enacted legislation. o Intergovernmental revenues are budgeted per the amount estimated by State and County agencies disbursing the revenues. The estimates provided have had a tendency to be slightly understated compared to actual revenues received over the past five years. The numbers provided are used in the budget as this coincides with the City's policy of conservatism in budgeting: slightly underestimate revenues and slightly overstate expenditures. o Transfers are actual amounts which will be transferred from one fund to another during the upcoming budget year. o User fees are based upon several factors: 1) past activity, 2) projections of future activity, and 3) the principle that fees charged should cover the costs of providing the service(s) purchased. Each year the City reviews all fees for their adequacy in recovering the costs of providing service(s) and adjusts them accordingly. An example is utility rates. Past consumption is examined and the number of units projected to be sold during the budget year is estimated. To those estimates is added consumption to be used by new residences and/or businesses based upon a review of building permits and development agreements. Then the estimated cost of providing the service is calculated and compared to the user fees estimated to be received. Should anticipated user fees prove to be not sufficient to cover the costs of providing the services they are adjusted until the fees collected equal the costs of providing the service. These same factors are considered when setting other types of user fees.