Agenda - Council Work Session - 06/13/2017

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The following graph reflects the City's General Fund revenues, budget and actual, for 2016: Taxes Intergovernmental Fines and forfeits Licenses and Permits Charges for Services Other General Fund Revenues Budget and Actual �so�f'r4�4�4242 s�s�6�s�-> -> � O '00 -0 's0'0 -«i -'�'s�'%'0 s'�0'0 s�0'%'s� �o -'0-'0%DO�'O�'0-'0OO'0 -'0 '0 -'00 -0 -'0 '0 -'00 OO 0,0 -'00 0 • Actual • Budget Total General Fund revenues for 2016 were $10,110,798, a decrease of $112,597 (1.1 percent) from the previous year and $77,927 (0.8 percent) more than budget. The change from prior year and favorable variance was primarily in licenses and permits and charges for services which fluctuate with development levels in the City. Conservative budgeting for these categories contributed to revenues surpassing budget even with the decrease in the volume of activity in the current year. The following graph presents the City's General Fund revenues by source for the last five years: $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 General Fund Revenue by Source Year Ended December 31, Taxes Intergovernmental All Other 0 2012 ■ 2013 ■ 2014 ■ 2015 ■ 2016 The trend of increased reliance on tax revenue and decreasing intergovernmental (primarily state revenue) is typical to Minnesota cities. As presented in the graph above, property taxes account for 81.7 percent of General Fund revenues. During 2016, tax sources reflect an increase of $299,658 due to an increase in the approved General Fund levy. The City received $11,530 more intergovernmental revenue in 2016. The 2016 decrease in the category for "all other" ($423,785) above includes licenses, permits, and charges for services related to less development in the City in the current year. -11-