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71 <br />72 <br />73 <br />74 <br />75 <br />7{> <br />77 <br />78 <br />79 <br />SO <br />S� <br />82 <br />83 <br />8� <br />8S <br />86 <br />87 <br />88 <br />89 <br />�a <br />91 <br />92 <br />93 <br />94 <br />9S <br />96 <br />97 <br />98 <br />99 <br />104 <br />10� <br />102 <br />103 <br />I0� <br />�as <br />The following chart shor�vs a cozx�parison ai the City's praper�y tax levy azac� t�Ze local infla�inn <br />ra�e, <br />5-yea�r Cumulative �ncrease <br />35.�4°/v - _ <br />25.00% - ��°'°°�� <br />1 S.Oa% -- <br />5.00% -- <br />W�.��n/0 2003 2004 20�5 2�06 2007� <br />�� Tax I.evy —�— Inflatian <br />As is s�own in ih� chart, over �he past 5 years the City's tax levy has xncreased a cornbined 28%, <br />connpared to the local inflation rate which has increased a com.biz��d 1�%. T�e reasnn the City's <br />tax levy �as ou�pac�d inflaiian is twa-£old. Firsi, the City lost over $704,OQ0 in general purposc <br />sta�e aid dur�ng this �:ime, abaut l�alf af which was levied back. In addztic�n, nan-tax revenues <br />such as caurt ��es, si:reet repair state aid, police and fire state aid, and in�eres� earnings, <br />remained stagz�ant which place� even greater pressure on tl�e tax levy to provide new naonies. <br />Bear in mind, tnat far the praperty fax-s��por�ed pro�rams, �O% IS �Ci�� 1I1T'DU�I1 $�1� taX IBV�, <br />�he rest coarz�es fram oih�r sources. <br />The end result is t�at des ite health increases i� the ro eri t� lev ihe Cit �Zas realized a <br />decline in real doliaars — necessiia�ing the elimznatzon of staff posi�ions, and th� �eed to draw <br />upon reserves. <br />Iie�dgefi Inapacts �o� 2008 and Beyoncl <br />As is so�aewhat implied above, the City's heavy reliance on 1;he property tax wili li�ely eontinue <br />for the foreseeable f�tuare. We do not anticipate any s�abstantive inerease in �on-tax revenue <br />sources �or the City's police, fire, streets, and �er�eral �dnninistratzve and �'inance �nctio�s. <br />For 2008 a�.d beyond, it is expec�ed that the City's opera�ing costs will continue to o�tpac� <br />inflation, unless fi�z�thex s�affing recluctio�s are made. This is largely attributable to the fact that <br />the majority of City se��ices are labor-i�t�nsive, which generally run hig�.er than most other <br />operating costs. As a result, ii the City desixes ic� maintain prngra�s and services at fiheir <br />existing level, fi�tuz�e �ro er� t� 1ev incr�ases will have �o be at leas�: 1-2% hi her than <br />ir�fiation. <br />Adcli�ional tax �e�y pressur�s are also expected io co�ne frnrn t%e City's Asset Replacement <br />prQgra�ns which are currently d�ficient t�y several hundred ti�nusand dollars annually. Finally, <br />az�y added em�hasis o� new initiatives that mighi result from the City's Irnagiz��; Raseville 2025 <br />pracess will also req�ire additio�al iax levy dollars. <br />