Agenda Packets - 1991/07/01 - Laserfiche WebLink

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GENERAL FUND REVENUE COMMENTARY Current Ad Valorem property taxes are estimated to be $1,420,645 in 1992 compared to $1, 310, 388 that was levied in 1991. This is an increase of 8.41%. This increase is the result of levying an additional $78, 330 to make up for a decrease in State Aids mandated by the Legislature and including the former levy for Forestry $31,927 in the General Fund. A number of years ago the City received State grants for the inspection of diseased elm trees. That grant program is no longer in effect. As a consequence their is no longer a reason to have a Forestry Fund. Forestry will become a department of the General Fund under the Parks and Recreation division in 1992 and the Forestry Fund will ' be closed. The Minnesota Legislature has reduced the amount of Local Government Aid it will provide to cities in 1992 . For the City of Mounds View this reduction is estimated to be $78, 330. In addition cities' levy limit bases were limited to 1991 levels by the Legislature eliminating the previously allowed adjustment for inflation and population or household growth. The City's levy limitation is calculated by subtracting the amount of Local Government Aid it is certified to receive from it's levy limit base( Current Ad Valorem property taxes + Local Government Aid) . The resultant sum is the City's property tax levy limitation. The amount of Local Government Aid that the City is scheduled to receive in 1992 is estimated to be $78,330 less than the amount it received in 1991. Since the amount of Local Government Aid the City is scheduled to receive is subtracted from the levy limit base to arrive at the levy limitation a reduction in Local Government Aid will result in an increase in the levy limitation. In this case $78, 330. License and permit revenues are estimated to decrease by 5. 98% in 1992 . This decrease is a result of the current economic downturn and the fact that a major portion of the Mounds View Business Park was completed and accounted for higher than normal activity in these accounts in previous years. Fines and forfeitures are estimated to decrease by 1.80% in 1991. This increase is expected to be a result of a continuing trend of decreased Ramsey County court fines which has occurred over the past several years. Minnesota Highway Patrol fines are anticipated to decrease by 33 . 33% in 1992 continuing a decline that began approximately 4 years ago. Administrative Offenses is expected to show a decrease of 14.22% based upon the average amount collected for the past three years. Intergovernmental revenues are expected to decrease by approximately 10.40% in 1992 . This decrease is primarily attributable to a permanent decrease in the amount of Local Government Aid that the City will be receiving in 1992 and future years as a result of legislation enacted in 1991 by the State Legislature. Other intergovernmental revenues