Laserfiche WebLink
1994 PROPOSED GENERAL FUND BUDGET <br /> By: Jessie Hart, Finance Officer <br /> <br /> CASE <br />DISCUSSION <br /> <br /># 2 <br /> <br />Background: <br /> <br />On September 14, 1993, the City Council adopted a proposed levy for collection in 1994 of <br />$1,787,243 of which $955,811 was direct property tax in support of the 1994 Proposed General <br />Fund Budget. This is the amount of property taxes that are necessary to fund the budget as it was <br />presented at the meeting on September 13, 1993 (please refer to your copy of the budget from that <br />meeting). While this amount cannot be increased, the Council does have the option to decrease it <br />to any level that they feel comfortable with. <br /> <br />We have proposed an increase in general property taxes of $220,731 to support the 1994 General <br />Fund Budget. Included in this increase is approximately $134,102 that results from our increase in <br />the local taxable value. <br /> <br />It is important to note that for payable 1994, the equalization aid has been eliminated and has been <br />rolled into the HACA calculation. This new calculation for HACA results in a decrease in aids for <br />1994 of $59,365 and when combined with the increase in the Fiscal Disparity Transfer results in a <br />net decrease of $48,409 in aids that the City will be receiving as compared to payable 1993. A <br />portion of this loss in aids can be offset by the need to levy less in 1994 for debt service. This <br />offset is $1,409 which leaves $47,000 in lost aids that are being replaced by general property <br />taxes. <br /> <br />Fiscal Disparities Transfer <br />HACA/Equalization Aid <br />Debt Service Levy <br />Collected as Property Tax <br /> <br />PAY PAY <br />1993 19~4 <br />280,379 291,335 <br />574,610 515,245 <br />26,261 24,852 <br />759.932 955.811 <br />1,641,182 1,787,243 <br /> <br />The proposed amount for property taxes payable in 1994 includes the recovery of the $47,000 in <br />lost aids. This recovery of aids, combined with the increase available from the tax capacity <br />increase from the 1993 level, make up $181,102 of the proposed $220,731 increase for 1994.The <br />remaining $39,629 is the cost equivalent of a full-time police officer which is a recommended <br />permanent increase in operational costs within the 1994 budget and beyond. <br /> <br />It should also be noted that the 1994 Proposed General Fund Budget is reliant on a number of <br />factors that are being addressed in the establishment or revision of various revenue and expenditure <br />polices for a number of the City's funds. If those policies are rejected, we then face an additional <br />problem of funding in various areas. <br /> <br />33 <br /> <br /> <br />