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_--� _-�___ __� v.. � - - �-_ ,..— —r _. �_ _ - — . --- . _ _ �.. <br />City Financial Status Executive Summary <br />City Financial Sia#us <br />• Both cities have very similar levels of total revenue and expenditures per capita. <br />In both cities, intergovernmental revenue {mainly State aid} as a percentage of total reven�e has declined <br />sharply over the last five years, requiring a greater portion of revenues to be generated firom local taxes <br />and assessments. <br />- The reduction in local government aid by the State in 1991 indicates that more pressure on revenues <br />will likely occur in the future. <br />- Falcon Heights may find it more difficult than Roseville to Compensate for future State aid reductions <br />since its tax capacity per capita is substantially lower. <br />For 1991, tax capacity rates for the two cities are identica�. � <br />- Average city tax on a$90,000 home has also been very similar over the iast five years. <br />� Roseville's tax increment financing (TIF} districts are generating cash flow above projections while one <br />poor performing TIF project in Falcon Heights is projected to cause overall TiF deficits from 1991 to �998. <br />- However, substantial TIF reserves in Falcon Heights should adequately fund the projected deficits. <br />Falcon Heights' overall reserve balances are higher on a per capita basis thar� Roseville. These higher <br />reserves are somewhat offset by: <br />- Substantially higher capita! spending per capita by <br />street improvement over the last five years. <br />- Surpluses from previous years will likely be drawn <br />Heights. <br />Roseville in storm sewer, sanitary sewer, water and <br />down to fund the upcoming TfF deficits in Falcon <br />• Fiscal disparities are projected to be minimally impacted by a merged entity, if the cities pursue that <br />alternative (estimates made by fiscal disparities program administ�ators}. <br />14 <br />ROS-0417 - 3430 - Working DraR <br />� <br />