12-12-2016 Council Packet - Laserfiche WebLink

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General Fund Revenues The primary revenue source for the General Fund, accounting for 52.5% of the revenue budget, is the property tax levy. The 2017 General Fund tax levy is $4,197,244 which is the same amount is $180,744 (4.5%) higher than the 2016 General Fund levy. Total General Fund revenues are budgeted to increase by $294,294 (3.8%) in 2017. Of the revenue amounts that are increasing, the largest is an increase of $61,000 for contracted police services. Plan Check fees are being increased by $15,000; with the related Variance and Engineering & Legal fees increasing by a total of $10,000. Investment interest is being increased by $19,000. Finally, golf course revenue is being increased by $12,000. Effective 1/1/2017, the City will no longer be issuing dog licenses. This revenue amount ($4,000) has been removed from the Revenue Budget. Special Revenue Funds The special revenue funds that budgets are adopted for are the Park Fund, The Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. In the Park Fund the primary revenue source is park dedication fees collected from developers. By state law, these funds must be used for parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department's drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. Debt Service Levies The 2017 levy for debt service is $754,990. This levy is used to pay the debt service on the City's outstanding bonds. Enterprise Funds The Water, Sewer, Stormwater, and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. As part of the 2017 fee schedule, the following rate increases were approved: Water 11 %; Sewer 4%, Stormwater 10%, and Recycling by 10%. The fee schedule was approved at the November 28 council meeting. Water The water fund has historically been operating at a loss. Because depreciation is a non-cash expenditure, the fund has had a positive operating cash flow since 2009. In most years, the operating loss has been covered by the revenue received from antenna leases on the water towers. Due to consolidations in the cellular industry and changing technologies, the lease revenue is not guaranteed to continue indefinitely.