|
<br />I
<br />
<br />I
<br />
<br />I
<br />
<br />Council Meeting Minutes
<br />December 6, 1999
<br />
<br />Page 2
<br />
<br />Public Hearing, continued
<br />
<br />The 2000 Budget is fully funded, and nonwtax revenues provide the majority of the
<br />financing in the amount of $9,810,100 or 76% oftotal funding. Remaining funding
<br />arrives from taxes in the amount of $3, 173,600 or 24% of total financing. Water and
<br />sewer utilities are exclusively paid by customer charges and equal about $3 million in
<br />non-tax revenue. Other sources of non-tax revenue include: golf course and driving range
<br />fees - $422,000, building permit fees - $250,000, park and recreation and Family Service
<br />Center customer charges - $975,000, stormwater utility - $80,000, engineering fees -
<br />$400,000, State Aids - $2 million, reserves - $1,375,000, police fines and forfeitures-
<br />$231,000, License Bureau - $87,000, franchise fees - $191,000, and others - $846,000.
<br />
<br />A recent study of the stormwater utility fee showed the General Fund has carried costs. It
<br />is recommended that a shift be made so that the stormwater utility fund finances its own
<br />costs. To enable this shift, $80,000 in additional annual revenues is needed to finance the
<br />stormwater utility fund. Fee changes in this fund will be analyzed more closely in the
<br />Utility Rate Study to be performed this upcoming Spring.
<br />
<br />The City's reserves will be actively involved in financing services, and total $20,457,000.
<br />Reserves arrive from the Environmental Restoration Fund, General Fund, Park
<br />Endowment Fund, and Closed Bond Fund. Currently, only interest earnings are used to
<br />pay infrastructure work. Beginning with the 2000 Budget, Council authorized a
<br />withdrawal of $2,445,000 from the reserves to pay for parks improvements. After thc
<br />withdrawal, the reserves will remain at a level adequate to continue community needs.
<br />
<br />Egan summarized how the 2000 Budget would affect property taxes for both residential
<br />and commercial properties. The following property classifications and valuations would
<br />apply these annual increases: $75,000 residential property - $5, $150,000 residential
<br />property - $7, $150,000 commercial property - $11, $250,000 residential property - $26,
<br />and $250,000 commercial property - $51.
<br />
<br />The municipal tax rate is a measure of the total levy against the total value of properties to
<br />taxes. The tax rate makes for reliable comparisons of taxes between communities. A
<br />survey of area communities found that New Brighton continues to maintain a tax rate
<br />competitive to neighboring cities. Fulton added that the City is maintaining current
<br />service levels, and will continue strong interest earnings and building permit levels.
<br />
<br />In regards to Samuelson's question, Egan verified that stormwater utility fees for
<br />residential properties are flat fees regardless of parcel size. However, commercial
<br />properties are billed according to parcel's condition and size.
<br />
<br />Benke explained that the City has tried to accomplish a move to a user paid system which
<br />better reflects the true cost of managing utilities and avoidance of any charges applied to
<br />the property tax bill.
<br />
<br />Larry Justin, 1225 Imperial Lane, feels the information was well presented, but requested
<br />detail of how street and stonnwater projects are paid. Egan explained that street and
<br />stonnwater projects are capital items, and each Spring staff determines which projects will
<br />go forward and ifthere are changes reflected in stormwater fees. She noted that a
<br />storm water rate change is anticipated this Spring. The budget reflects the installment
<br />bond cost of the City's share for projects already constructed.
<br />
<br />Public Hearing
<br />
<br />Truth in Taxation
<br />Hearing
<br />
|