Laserfiche WebLink
City of Roseville — 2012 Budget <br />Discussion Items <br />From 2008 -2012, overall funding sources for the City's governmental fund operations have remained <br />fairly stable with a few exceptions. <br />Since 2008, the City has become more reliant on the property tax to fund current operations. This has <br />resulted in large part due to the loss in Homestead Credit State -Aid reimbursement. This was an <br />intended effect resulting from the State Legislature's decision to remove the homestead credit <br />reimbursement to help finance the State's takeover of the general education (per pupil) funding. The <br />City's reliance on the property tax also resulted from the decline in interest earnings and other non -tax <br />revenue sources. For 2012, the increase in the tax levy was used to strengthen the City's vehicle and <br />equipment replacement program. <br />Property Tax Levy <br />Over the next 5 years, it is expected that the City's tax levy will need to increase at levels that are above <br />inflation. This will be necessary to offset expected increases in personnel - related costs and to continue <br />improving the City's asset replacement funding mechanisms. <br />The City expects to see stabilizing investment earnings over the next few years — albeit at lower levels <br />than three or four years ago. While cash reserve levels are expected to remain relatively unchanged, <br />long -term interest rates remain near low historical levels. <br />Charges for Services also remain a significant revenue source for the City, accounting for approximately <br />12% of total Governmental Fund revenues. These revenues include; internal service charges from the <br />General Fund to other general purpose functions, IT- related charges collected from joint partnerships, <br />and recreation program fees. These revenues are expected to grow at inflationary -type levels in the <br />future. They are depicted below. <br />17 <br />