Laserfiche WebLink
revenues to pay for related capital projects and operating costs. She noted that <br />understanding the likely fiscal impacts of growth helps cities develop a long-range <br />financial plan and develop alternative planning scenarios. The objectives of the study are <br />to determine growth-related property tax revenues and operating and capital costs for <br />2000-2005, determine the fiscal impact on the general fund in the tax rate on various <br />residential market values and on a per capita basis, and determine the City's ability to <br />support additional personnel. Ms. Klumpp pointed out that the study methodology <br />identifies total revenues and costs associated with growth and the difference is the net <br />fiscal impact. Ms. Klumpp used the following assumptions: State tax law remains the <br />same, with exception of personnel and contractual service requests for 2000, City service <br />levels remain the same, basic City cost and revenue structure remain the same, General <br />Fund non-levy tax revenues are offset, all amounts are expressed in 1999 dollars, new <br />low density housing valued at $150,000, new medium density housing valued at <br />$100,000, population density is 3.00 persons per household for 2000 - 2005, new <br />commercial and office space valued at $65 per square foot, new industrial office space <br />valued at $35 per square foot, all industrial growth and 50% of commercial growth will <br />occur in TIF districts, enterprise revenue rate structures cover all capital and maintenance <br />costs, all projects are financed on a net tax capacity basis and County and School <br />Districts impacts are outside the scope of this study. The tables Ms. Klumpp presented <br />were the growth related revenues - summary, growth related expenditures (operating), <br />Total CIP 1999-2005 uses, sources of Revenue CIP 1999 - 2005, growth related <br />expenditures (capital), general fund impact summary, and calculation of tax rate. The <br />fiscal impact of growth budget analysis trends 2000-05 stated increased reliance on <br />property taxes and intergovernmental revenues, licenses, permits, fees for service <br />declining as a soume of revenue and public works decreasing as a percentage of <br />expenditures. The fiscal impact of growth findings are new projected growth does not <br />appear to be financially self-sufficient and future growth will result in a net property tax <br />burden of approximately $888,993 from 1999 - 2005, or $6.98 per resident per year. Ms. <br />Klumpp suggested fiscal impact of growth future actions for consideration are to develop <br />a long-range financial plan and review financial management policies, explore <br />opportunities to diversify General Fund revenues and to explore the fiscal impact of <br />different planning scenarios. <br /> <br />Councilmember Hendriksen stated he would like to know what has to happen to close the <br />$888,993 amount. <br /> <br />City Administrator Norman noted that in the year 2006, when the next TIF District comes <br />off, that makes a big difference. <br /> <br />Councilmember Hendriksen felt that doing a 10-year impact study instead of a five-year <br />would be okay but not to do six years. <br /> <br />Councilmember Zimmerman stated he would be "suspicious" of a 1 O-year plan. <br /> <br />Ms. Klumpp ended her presentation encouraging the Council and staff to think in terms <br />of financial planning - where do you want to see yourself financially. <br /> <br />City Council Work Session/September 8, 1999 <br /> Page 2 of 7 <br /> <br /> <br />