The following summary represents planned or anticipated revenues for all funds, excluding unbudgeted special revenue funds, debt service funds and capital project funds. The total amount of anticipated revenues fluctuates up or down from year to year, depending on special projects and grants which may occur during the plan budget period.
In 2011 budgeted revenues for all funds total $22,094,754. Total 2011 budgeted revenues increased from 2010 actual revenues by 5.7%, due primarily to tax increment revenues as the last project completed came on the tax rolls.
The largest source of revenue by category is property taxes of $12,082,152 comprising 54% of total revenues. Property taxes are levied to support the general fund activities, help pay debt and provide tax increment redevelopment funding sources.
Currently the City is collecting tax increment revenues from several districts to pay off redevelopment notes, redevelopment bonds and help in future redevelopment costs of properties within certain districts. Levy limits re-instated in 2004 were removed once again in 2005 and were re-instated in 2009 and remain in place. Levy limits while providing assurances to taxpayers do give the City the additional challenges in meeting citizen’s requests for sustained services or in some instances increased services. In 2011 budgeted taxes remained fairly constant as one tax increment district expired but another was completed.
Intergovernmental revenues total $655,870 or 3% of the City’s revenues. The City currently receives highway funding, police and fire aid, chemical assessment grants, PERA aid, fire grants, Community Development Block Grant funds and other miscellaneous state grants. The City’s Local Government Aid (LGA) of $50,000 earmarked for the Hopkins Center for the Arts was reinstated for 2011 after being unallotted at 50% for the second half of 2008 and 100% for 2009 and 2010. Estimates for intergovernmental revenues are based on known revenue sources and projections are based on information from the various state and county agencies from which the revenues are received. The City has reduced its reliance on revenues from state and federal governments due to their uncertainty.
Utility fees for water, sewer, refuse and storm sewer account for $5,169,510 of the City’s revenue or 23%. In 2007 a utility master plan was completed for the water, sewer and storm sewer funds looking at anticipated revenues, expenditures and planned capital improvements. The rate structure for each fund was then adjusted to meet those needs. Beginning in 2008 and going forward, rates will be adjusted as set forth in the Utility Master Plan. In doing so revenues should be adequate to meet the future need of those systems. In 2008 an analysis of the Refuse fund was also done and rates were adjusted to ensure we continue to meet operational and capital needs. In 2011 rates for sewer, and refuse were increased. Revenue projections are based on the Utility Master Plan as developed by the City Engineer which will be updated in 2011.
Charges for services, other than utilities are $1,406,251 or 9% of the City’s revenues. The City charges for plan reviews, special police or fire services, parking permits for city parking facilities, facility rental, concessions, ice time and other miscellaneous services. Included in charges for services is $302,009, which is charged to the general and special revenue funds for equipment replacement. A large portion of the charges for services include plan review fees from building permits and due to the economic downturn that began in 2008 the budget for 2011 was set conservatively. While there is still potential commercial re-development we did not want to rely on that income when setting the 2011 budget. With the exception of building plan review fees, revenues for other charges remain stable. Finance relies on plan review fee projections prepared by the City’s Building Official and input from departmental managers on the level of activity expected in their departments when setting the budget for this revenue category.
Special Assessments and Special Assessment Fees for housing projects are $829,150 or 4% of City revenues. Special Assessments are levied for street, sidewalk and alley, water, sewer or storm sewer improvements that benefit private property. Special Assessment fees are assessed every year to the specific housing properties that benefited from the development projects. These projects allowed the City to improve the value of the housing stock in several town home and condominium developments. Special assessment revenues fluctuate with the number and amount of assessable projects and have remained relatively stable the last few years. Special assessment revenue projections are based on the special assessment rolls and scheduled payments due in the budget year. The city is recently completed a significant two year neighborhood improvement project and those costs were placed on the tax rolls for 2011.
Permits, licenses and fines are $568,490 or 3% of revenues. Permit revenues are dependant on the economy and on future development of the City. In 2007 permit revenues increased due to a major commercial development returned to normal levels for 2008. In 2009 that same developer expanded their project and an additional unexpected commercial development brought in additional permit revenues for the year. The permit fee revenue projection was prepared by the City’s Building Official based on knowledge of pending and anticipated projects which are expected to decrease for 2011. License revenue is based on the types of businesses licensed by the city and past year’s collections.
In addition to the franchise fee collected on cable television, a franchise fee on electric and gas utilities was implemented in 2004 to help offset the loss of state aids. It impacts residential properties by $1 per month on each of their electric and gas utility bills. The rate progresses higher for multiple dwellings and commercial properties. Total franchise fees collected in 2011 will be about $490,000 or 2% of City revenues. While franchise fees on electric and gas remain stable there is federal legislation that may limit the future of cable TV franchise revenues and therefore a more conservative approach was taken to that portion of the franchise fee budget. We expect franchise fees to remain stable for 2011.