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City of St Anthony Financial Plan REVENUE MANAGEMENT It is essential to responsibly manage the City's revenue sources to provide maximum service value to the community. Some revenue sources, such as intergovernmental transfers (LGA and HACA) are outside of direct City control and are consequently unaddressed by this policy. This policy establishes guidance for the two major sources of City revenue: property taxes and fees/charges. PROPERTY TAXES The property tax rate will not be increased without exploring all other alternatives. If, after reviewing these alternatives, an increase is required, the goal of the City will be to keep the property tax rate increase at or below the prevailing inflation rate. Basic City services, as annually defined and approved by the City Council, will be funded to the maximum extent possible by increases in market valuation, (i.e., new tax base growth and valuation increase). Priorities for increasing the property tax rate include: • Long-term protection of the City's infrastructure. • Meeting legal mandates imposed by outside agencies. • Maintaining adequate fund balance and reserve funds sufficient to maintain or improve the City's bond rating. Property tax rate increases to meet other purposes will be based on the following criteria: • A clear expression of community need. • The existence of community partnerships willing to share resources. • Establishment of clearly defined objectives and measurements of success. SERVICE FEES AND CHARGES The City will establish service fees and charges wherever appropriate for the purpose of keeping the property tax rate at a minimum and to fairly allocate the full cost of services to the users of those services. Specifically, the City will: • Establish utility rates sufficient to fund both the operating costs and the replacement of capital equipment items, plus maintain an adequate level of working capital. 115