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City of Ramsey 2006 Proposed General Fund Budget REVENUES Revenne Overview Depending on their unique governmental operation, cities may receive revenues from a variety of sources. Minnesota state law, however, does not empower cities to use a great diversity of local revenue sources. For example, unlike in some other states, local governments in Minnesota may not impose an income tax. As a general rule, it' the state does not specifically authorize cities to use a revenue (such as special authority for local sales taxes) the city cannot legally use that source. The classification of budget accounts listed below are those that the City of Ramsey utilizes and are in conlbrmance with recommendations from the "Classification of Accounts for Use by Fiscal Officers in Cities," published by the State Auditor's Office: * Taxes * Licenses and Permits * Intergovernmental Revenues * Charges for Services * Fines and Forfeitures * Investment Earnings * Miscellaneous Taxes - Tax revenues include current real property taxes, delinquent real property taxes, apportionments from tax Ibrfeit sales, and the fiscal disparities distribution [a tax base sharing of commercial/industrial property in the seven county metropolitan area]. Licenses and Permits - Cities receive revenues from both businesses and occupations which the city licenses such as sales of food, beer, and cigarettes; liquor establishments, bowling alleys, waste disposal contractors, and heating and utilities connections. This classification also includes non-business licenses, such as those regulating dogs, signs, bicycles and buildings. Intergovernmental Revenues - Cities in Minnesota receive a variety of shared revenues from the state. Each of these programs has a separate policy goal and taken in combination the programs and their impact on city finances can be confusing. Some of the shared revenues that the City of Ramsey receives are Local Government Aid (LGA), Homestead and Agricultural Credit Aid (HACA), Police Insurance Premium Tax, Municipal State Aid and various grants. Charges for Services - Cities also receive revenues from election filing fees, sales of maps and ordinances, assessment searches, and court fees, police patrol and fire services; street and sidewalk repair; parking fees; mi'usc collection; water and sewer charges; inspection fees; and recreation facilities charges. Fines and Forfeitures - Included in this category are expected receipts from violations bureaus, courts, confiscated deposits, and collections on bonds or sureties held for enforcement or security purposes. Investment Earuings - Projected earnings of each fund based on interest pooled in a common fund and distributed at year end based on average cash balances. Miscellaneous - Revenues not reported in other categories include income from rent or sale of property, deposits on contracts, profits fi'om city-operated concessions, contributions from other funds, donations or borrowings. Public Hearing - December 5, 2005