2016 Approved Budget and CIP - Laserfiche WebLink

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Discussion Items From 2012-2016, overall funding sources for the City’s governmental fund operations have remained fairly stable with a few exceptions. Since 2012, the City has become more reliant on the property tax to fund current operations. This has resulted in large part due tothe added debt service costs associated with the bonds that wereissued to finance the construction of a new fire station and the park renewal program. The City’s reliance on the property tax also resulted from the decline in interest earnings and other non-tax revenue sourcesduring this period.The chart below depicts the property tax levy for the past 5 years. Property Tax Levy $20 Millions $18 $16 $14 $12 $10 $8 $6 $4 $2 $- 20122013201420152016 Over the next fiveyears, it is expected that the City’s tax levy will need to increase at levels that are somewhat 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. After several years of decline, the City has realized a stabilization of its investment earnings,albeit at lower levels than a few years ago. Charges for Services also remain a significant revenue source for the City, accounting for 12-19% 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 futureand are depicted below. 17