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City of Roseville — 2013 Budget Discussion Items From 2009-2013, overall funding sources for the City's governmental fund operations have remained fairly stable with a few exceptions. S�nce 2009, the City has become more reliant on the property tax to fund current operations. This has resulted in large part due to the loss in Homestead Credit State -Aid reimbursement. This was an intended effect resulting from the State Legislature's decision to remove the homestead credit reimbursement to help finance the Mate's takeover of the general education (per pupil) funding. The City's reliance on the property tax also resulted from the decline in interest earnings and other non -tax revenue sources. For 2013, the increase in the tax levy was necessary to pay for added inflationary -type costs and to pay for added debt service costs related to the bonds issued to finance the construction of a new fire station and park renewal program. $18 b $17 $16 $15 $14 $13 $12 Property Tag Levy 2009 2010 2011 2012 2013 Over the next 5 years, it is expected that the City's tax levy will need to increase at levels that are above inflation. This will be necessary to offset expected increases in personnel- related costs and to continue improving the City's asset replacement funding mechanisms. The City expects to see stabilizing investment earnings over the next few years — albeit at lower levels than five or six gears ago. ale cash reserve levels are expected to remain relatively unchanged, long- term interest rates remain near low historical levels. Charges for Services also remain a significant revenue source for the City, accounting for approximately 11 % of total Governmental Fund revenues. 'These revenues include; internal service charges from the General Fund to other general purpose functions, IT- related charges collected from joint partnerships, and recreation program fees. These revenues are expected to grow at inflationary -type levels in the future. They are depicted below. 16