02/19/2013 Meeting Minutes - Laserfiche WebLink

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Finance Committee Report from budget Hearings Revenue Assumptions: Copfer reviewed the revenue projections for 2013. Most assumptions were based on historical comparison. I will discuss the exceptions: • Property taxes are per the county fiscal officer's 7% reduction in assessed valuations. Our positive commercial development activity the last two years reduced that reduction to 5.12% • Our permit valuation ended at 39 million in 2012. The budget reflects slightly lower permit activity, but somewhere nearer the average of $ 30,000,000 million in permit valuations. • Municipal income taxes, which ended up in 2012 due to a 2% increase in withholding and a revival of the net profit, which is usually estimated payments coming in the .fourth quarter. Individual income tax is down 3.9%, which is due to either smaller incomes or more than likely, their workplace cities increased the tax rate, thus receiving less since we give a 100% credit up to two percent. In 2013, the projections are based on 2012 actual, with acknowledgement of Heartland Payroll Systems leaving mid year of 2012 affected 12 months in 2013 offset by knowledge that both the city and the schools did negotiate pay increases for 2013. • Another change in the general fund is the $150,000 in reimbursement for Mayor's court costs, which is conservative to what the mayor had projected. • Lastly, the state cuts in local government funds are an additional $400,000 along with the elimination of the estate tax beginning on January 1, 2013, which will reduce the second half collection possibly and definitely next year. Estate taxes estimated are only what has been filed and in the process to be remitted in the first half collections thus far. • Recreation center revenues are based on historical activity, except knowing the ice will be down for the chiller replacements and the tennis courts will be down to two after moving gymnastics downstairs mid year, rentals are down in both those cost centers. • Revenues in the solid waste and recycling fund, which is 15% of the income tax collections, are up. The important thing is that with stabilized and slightly increased income tax collections and a much more cost effective contract for solid waste collection, the fund will be able to support the entire solid waste contract and the leaf pick up contract of $195,000 without having to be support from the general fund - $ 270,000 in transfers and the entire $195,000 of the leaf pick up was paid for out of the general fund in 2012. • The Sewer Revenue Fund estimated resources reflects the rate increase offset by a :, projected decline in usage. The Sewer Improvement Fund reflects the EPA loans.