02-08-1993 - Long-Range Financial PlanningCity of West Covina
Memorandum
TO: City Council
AGENDA
FROM: City Manager
ITEM NO.
SUJECT: Long -Range Financial Planning DATE February .8, 1993
Summary This City Council Study Session is the fourth of several
sessions focusing on the development of a long-range
strategic financial plan. The City Council encourages the
public. to continue to participate in the financial
planning process. .
BACKGROUND
The City Council has undertaken an evaluation of the City's future
fiscal challenges in meeting the service needs. of the community and
consideration of alternatives for overcoming those challenges. The
culmination of this.evaluation process will be the development of
a long-range, strategic financial plan for the City of West Covina.
At the Study Session of January 25,'the City Council reviewed a
number of revenue alternatives provided by the public and City
staff. The next step in terms of reviewing. revenue alternatives is
to establish priorities and to take a realistic look at the
achievability of each alternative.
CITY REVENUES
As a follow. up to the January 25 study session, Council will be
focusing once again only on the revenue side of the 'financial
equation and how changes in revenues will impact the projected
"gap" in the General. Fund. The attached information provides an
overview of the magnitude of the "gap" that needs to be addressed
and suggests that it will not be easy to.fill by enhanced revenues
alone. An additional study session is scheduled for March 8, 1993
at which time an in-depth review of the expenditure side of the
fiscal equation will be undertaken.
.As we evaluate the City's revenue base it is important to keep the
following parameters in mind:
At this time we are focusing only on the General Fund
operating budget and will need to address capital needs at a
future date.
1
Staff has attempted to present a wide range of revenue
alternatives. No recommendations are being made at this time
for any one option to be adopted by Council, but only that
Council provide _direction *in terms how acceptable and
achievable a category and/or specific types of revenues are,
in order that we may narrow our- focus to more specific revenue
alternatives. Further analysis can then be done to include
specific revenues in our long range financial projections.
A number of the revenue alternatives presented may not be.
readily available or may require extensive and time consuming
efforts to implement. IlHowever, this does not'mean that any
given option should.not1be pursued.
Several of the alternatives presented are gross estimates and
will need further refinement before a hard dollar amount may
be incorporated into the financial projection model.
I
Additional analysis of 'I suggestions from the public may be
necessary before.they can be quantified or incorporated into
the.planning process.
i
The focus of this session is only on the revenue side of the
financial equation. The�expenditure side will be the focus of
the March 8, Council Study Session.
Revenue Enhancements
Options for enhancing the City's revenues presented by staff have.
been developed based on a review of legal information. governing the
City's ability to impose or increase fees and taxes and from ideas
submitted by City Staff. Some of the more innovative options
presented for enhancing City l revenues came from City employees and
are includedin the attached material. I have also included an
overview of the comments and questions raised by the public at the
last study session.
The revenue alternatives arel4gain broken into seven categories as
follows:
1) Revenues from development activities
2) Revenues from departmental entrepreneurship activities
.3) Non -recurring revenues
4) Revenues from new or increased fees and charges
5) Revenues from.new or increased assessments
6) Special tax levies)
7) General tax levies'.
The same. overview of each of these categories. as -previusly
.presented is provided in the attached material. Once again it will
provide the context for the majority of the staff presentation and
Council discussion.
2
ANALYSIS OF REVENUE ALTERNATIVES
The primary focus for this portion of the planning process is -to
move towards the establishment of Council's general parameters
regarding the types of revenue alternatives on which staff may
focus. their efforts. Our approach to reviewing revenue
alternatives focuses on two key questions: 1) what is the
acceptability of the alternative and 2) what will it take to
achieve the revenues projected under the alternative? A matrix has
been prepared to accompany each revenue category to facilitate this
discussion (see attachments). -
The components of the matrix providefor the general discussion as
to'the acceptability and achievability of a revenue category as a
whole. For example, should we be looking at the use of
"entrepreneurial" activities as a category under which a variety of
alternatives may be explored?
This same analysis may then be applied to a more narrow subset of
a category such as undertaking "entrepreneurial activities which
compete . with the private sector". As noted at the January 25
study session there are several Council policy issues which impact
each set of alternatives. A discussion of these policy issues may
be used.to develop a set of parameters to'guide the further review
of revenues. Lastly, specific revenue alternatives and/or related
subsets of alternatives can be analyzed in.a similar fashion. This
analysis will focus on the development of -a consensus regarding the
acceptability and achievability of revenue alternatives.
By .using this process the. wide range. of alternatives can be
narrowed down to a manageable number. Initial staff efforts can
then be directed at those revenues which have botha high level -of
acceptability and achievability. This process.will provide staff
with a general set' of- Council parameters under which further
analysis can -be completed without necessitating any given revenue
alternative being completely disregarded at this time.
RECOMMENDATION
Council will have. the .opportunity to discuss the results of the
January 25 study session and provide general direction on the
revenue portion of the planning effort to guide staff's efforts in
fur er analysis and impact of different revenue alternatives.
James"E. Starbird
City Manager.
3
•
City of West Covina
Financial Planning 1993
General Fund Operating Budget Deficits
Revised Baseline Fiscal Projection)
Fiscal Year
Projected Deficit
i Revenues From
RDA Activity
Net Deficit
General Fund
Balance
1993/94
<$1,574,972>
Maintains
Existing
Revenues
<$1,574,972>
-'$8,678,804
1994/95
< $2,048,873>
Maintains
Existing
Revenues
< $2,048,873>
$6,629,931
1995/96
<$5,034,018>
$1,060,000
<$3,974,0.18>
$2,655,913
1996/97
< 57,788,494>
$1,474,000
< $6,314,494>
< $3,658,581 >
1997/98
< $8,264,606 >
$1,891,700
< $6,372,906 >
< $10,031,487 >
1998/99
< $9,007,573 >
$1,986,285
< $7,021,288 >
< $17,052,775 >
1999/00
<$9,587,947>
$2,085,600
<$7,502,347>
<$24,555,122>
1) A projected State reduction of $1 million in property tax revenues has been incorporated into the
baseline projections.
2) While the chart depicts a negative General Fund Balance, the City is required to adopt a balanced
budget each year. The negative balances are shown to reflect the magnitude of the challenge facing
West Covina.
1
ACTIVITIES.
1
Principle: While significant development opportunities are limited in West Covina, due to the lack of
vacant land, there still exists the ability to construct developments which may enhance the
economic stability and vitality of the City. Proposed projects of significant nature must be
carefully considered and thoroughly reviewed as to their impact and benefit to the community
before giving approval.
Policy Issues: 1)Are proposed development activities in accordance with the City's general plan and City
goals?
2) Does the project provide additional jobs and services for West Covina residents and generally
enhance the economic base and stability of the City?
3) What role should the City and Redevelopment Agency play in encouraging development?
Example Areas for Consideration
,
Potential Development Projects
Potential General Fund
Revenues
Time .
Frame
Material Recovery Facility j
Up to $2.5 million
95-?
BKK - surrounding area and post -closure activities
$25,000+
95-?
South Hills Homes
$100,000
($1.6 Million 1 time)
94-03
Projected Redevelopment Projects*
$1,750,000
Implementation: The ability to implement a development project will vary depending on the complexity of
the project, the number of age, ties involved, and economic feasibility.
*Note•- information previously given
2 \
Potential Development
Estimated.
Time
Acceptable'
Achievable'
Comments
Projects
Revenue
Framer
-
A
B
C
1
2
3
4
Material Recovery Facility
To $2.5 mil.
Long
M`
BKK - Surrounding Area
$25,000+
Long
Ma-
4A
South Hills Homes
$1009000
Long
($1.6 mil.
& Short
one time)
k
�f
RDA Projects
$1.75 mil.
Long
r
' Time Dame: Long term assumes that the earliest new revenues may be realized is FY 1995-96 or beyond. Short term assumes a portio�
or all of the revenue may be realized within or by FY 1994-95.
2 Acceptable: Alternatives may be ranked as to their acceptability with "A" being very acceptable and "C" not acceptable at this time.
3 Achievable: Alternatives may be ranked as to the ease, timeliness and cost associated with ultimately achieving the estimated revenue, with
"1" being the simplest to do and 9" being the most difficult.
3
1 �l' I 114 D1 W 114 DI Z I X 1j ' 0 I I'
Principle: For an agency providing public services opportunities exist to expand the provision of those
services to a greater number of clientele within the City and to other public or non-profit
agencies.
Policy Issues: 1) Will this activity achieve economies of scale whereby the unit cost of providing public
services is reduced?
2) Does this activity maximize the use of existing City resources, thereby maximizing
potential revenues to the City?
3) Will the implementation allow for the provision of services to West Covina residents to
be maintained or enhanced?
4) To what extend should the City provide new or additional services which may incidentally
or directly compete with the. private sector?
Example Areas for Consideration
Service
Potential General Fund
Revenue
Time
Frame
Provide City.Services to other Public Agencies
$30,0004100,000
93-96
Establish a "City Store"
$50,0004100,000
93-96
Provide City related services to residents
$10,000-$50,000
93-96
Establish areas/media for public advertising j
$10,000-550,000
93-95
Expand the rental or lease of public facilities j
520,000450,000
93-95
Implementation:' Providing services to other agencies .may require formal or administrative agreements,
additional staff (the cost of which would be covered by the charge for service). Other
services may be provided with existing staff and may be implemented administratively or
require council action. In.most cases these items may be implemented in a relatively short
time frame.
4 �
DEPARTMENTAL ENTREPRENEURSHIP
Entrepreneurship
Estimated
Time
Acceptable_ 2
Achievable3
Comments
Alternatives
Revenue
Frame'
A
B
C
1
2
3
Provide City Services to
To $100,000
Short -
Public Agencies
Long
- Dog Lic. Program
$159000
Short
�u.
- Personnel/Financial/LEA
To $50,000
Short
r
At
Services
- Equipment Maint. &
To $15,000
Short-
Repair
Long
-Joint bidding and
??
Short'r
contract administration
' Time Dame: Lon term assumes that the earliest new revenues may be realized is FY 1995-96 or beyond. Short term assumes a portion
g Y Y
or all of the revenue may be realized within or by FY 1994-95.
2 Acceptable: Alternatives may be ranked as to their acceptability with "A" being very acceptable and "C" not acceptable at this time.
a Achievable: Alternatives may be ranked as to the ease, timeliness and cost associated with ultimately achieving the estimated revenue, with
"1" being the simplest to do and " Y being the most difficult.
P
n
DEPARTMENTAL ENTREPRENEURSHIP (Cont.)-c�-
Entrepreneurship
Estimated
Time
Acceptable'
Achievable'
Comments
Alternatives
Revenue
Frame'
A
B
,C
1
2
3
Provide City Services
To $725,000
Short -
(Private Sector Related)
Long
- Ambulance . Services
To $500 000
Long
g
----Rental/Lease-of-Facilities--$50;000+
-
Short ----
(Land, Buildings, Equip.)
- City Store, Advertising
$50,000+
ShortJ�
- Enhanced Recreation &
$75,000+
Short -
Senior "fee" programs.
Long
Non -Profit Corp.
- Enhanced Engineering,
To $50,000
Short
Building & Planning
H e rr
Services
Tune Frame: Long term assumes that the earliest new revenues may be realized LsIcy,1995-9 or beyond. Short term assumes a portion
or all of the revenue may be realized within or by FY 1994-95.
2 ,Acceptable: Alternatives may be ranked as to their acceptability with "A" being very acceptable and "C" not acceptable at this time.
:'Achievable: Alternatives may be ranked as to the ease, timeliness and cost associated with ultimately achieving the estimated revenue, with
"1" being the simplest to do and " Y being the most difficult.
6
DEPARTMENTAL
Employee Review of Departmental Operations
The information provided below was received from City employees in response to a request
from the City Manager to submit their ideas for enhancing the City's revenues and/or reducing
expenditures and from a review of departmental operations. At this time only those ideas
which are related to revenues are presented. Potential revenues are estimates only and each
proposal will need further evaluation to determine actual revenues.
Revenue Source
Proiected Revenue
Provide, Services to other public agencies:
1) Dog license program for Covina
$15,000
2) Personnel Recruitment / Testing / Training
25,000
3) Labor Negotiations
?
4) Financial Services (eg. payroll)
5,000
5) Radio Repair/Maintenance
5,000
6) Printing
5,000
7) Construction Administration
10,000
8) Fire Services Instruction
10,000
9) Joint Bidding of Public Works Contracts .
?
10)Pursue Joint Contracts (economy of scale)
?
11)Police. Motorcycle Maintenance
10,000
12)Provide Contract LEA services
15,000
Subtotal
S 100,000
Provide Services to Agencies or Public (Private Sector Related):
1) Construction Design
15,000
2) Rental / Lease of Facilities -
30,000
(Fair Market Value, include event coordinator)
3) Adult Day Care..
10,000
4) Senior Meal Program (other senior services)
5,000
5) Provide Ambulance Services
500,000
6) Provide express and. "off -hour" inspections
15,000
7) Provide express and "off -hour" plan checks
15,000
Subtotal
$590,000
r
7
•
Revenue Source Projected Revenue
Miscellaneous Projects:
1) Permit Advertising:
= City publications
- Reader. boards
- Baseball fencing
- Bus Shelters
- On City Property (eg. freeway parcels)
J
2) Rental of office space:
- SGVCCC
- Civic organizations
3) Allow Bingo at Senior Center
4) Create non-profit corporation to provide
certain senior and recreation services
5) Create senior foundation for fund raising
6) Establish "Pay & Play" recreation facilities
7) Request School District to Share Cost of
Crossing Guards and School Resource Officer
Subtotal
Total all Potential Revenues
30,000
10,000
50,000
�u
V
10,000
30,006,'
$130 000
$720,000
0
0
NON -RECURRING REVENUES
Principle: From time to time opportunities are available to receive special "one time" revenues which
require the. disposition, exchange, or transformation of City assets.
Policy Issues: 1)Will the use of these resources be for a one-time need or an on -going service?
2) Is there an immediate need to utilize one-time funds (e.g. use of reserves) in order to
leverage other resources or to allow time for other resources to become available?
3) Is it desirable to optimize the flexibility of the revenue stream by disposing of restricted
assets (funds, real property, or enterprise activities)?
4) Are .there important equity or other non -financial policy issues to be considered in each
potential opportunity?
Example Areas for Consideration
Revenue Source
Potential General Fund
Time
Revenue
Frame
Exchange of Prop. A Funds for
$1,000,000 +
93-94.
General Funds
Sale of City assets (eg. land, equipment,
Unknown
93-96
buildings)
Use of City Unrestricted Reserves
Up to $12 Million
93-94
Implementation: Legislative authority and agreements with other agencies or entities generally
would be necessary to effect disposition, exchange, or transformation of the asset.
9
NON -RECURRING REVENUES
Non -Recurring Revenue
Alternatives
Estimated
Revenue
Time
Frame'
Acceptable'
Achievable'
Comments
A
B
C
1
2
3
Use of "One -Time"
Revenues
As Available
Short
Exchange of Prop A Funds
$ To 1 mil.
Short
Sale of City Assets (Land,
Facilities, Equipment)
??
Short -
Long
Use of City Unrestricted
Reserves
To $12 mil.
Short
�(
' Time Frame: Long term assumes that the earliest new revenues may be realized is FY 1995-96 or beyond. Short term assumes a portion
or all of the revenue may be realized within or by FY 1994-95. i
2 Acceptable: Alternatives may be ranked as to their acceptability with "A" being very acceptable and "C" not acceptable at this time.
3 Achievable: Alternatives may be ranked as to the ease, timeliness and cost associated with ultimately achieving the estimated revenue, with
"1" being the simplest to do. and " Y being the most difficult.
10
5
NEW AND/OR INCREASED FEES AND CHARGES
1 Principle: It is a general principle of financial management that in most cases, user fees and charges for
public services should be sufficient to cover the cost of providing the services. When fees and
charges generate less than .the cost of the service provided it requires taxpayers to subsidize
specific activities which may only benefit the persons receiving the service. Services for which
fees are charged generally are used voluntarily by a specific group of customers (eg. recreation
classes, request for Unclassified Use Permit, etc.).
Policy Issues: 1) Should the fee provide for the full -cost recovery of providing services to specific users,
including overhead, infrastructure and other indirect costs?
2) Are the fees sufficient to accommodate requests for services while ensuring that taxpayers
in general do not incur any residual cost?
3) To what extent does or should the General Fund subsidize services provided to specific
classes of customers?
Example Areas for Consideration
Service
New
Increase
Potential General Fund
Time
Fee
Fee
Revenues
Frame
Increase Development fees and
X
X
$10,000 - 50,000
93-96
adopt impact fees.
Fees for Fire Services
X
$35,00041,100,000
93-94
Increase fees by annual
X.
$15,000 - $ 20,000
93-94
inflationary factor (3 - 4%)
Negligent, Cost Recovery:
X
$ 10,000+
93-94
Drunk/Drug Driving
Negligent Fires
Hazardous Spills
Review of Existing Fees for full
X
X
$100,000
93-94
cost recovery and
to
Establishment of New Fees.
$2,000,000
Use of Consultant for in-depth
review.
Implementation: Fee increases require City Council action. Some are restricted by State law and have
additional requirements impacting the implementation process.
11
(I NEW AND/OR INCI
Principle: It is a general principle of fina
public services should be suffii
charges generate less than the
specific activities which may of
fees are charged generally are
classes, request for UnclassifiE
Policy Issues: 1) Should the fee provide for
including overhead, infrastruci
2) Are the fees sufficient to
in general do not incur any
3) . To what extent does or
classes of customers?
ED FEES AND. CHARGES
ial management that in most cases, usei fees and charges for
nt to cover the cost of providing the services. When fees and
►st of the service provided it requires taxpayers to subsidize
benefit the persons receiving the service. Services for which
4 voluntarily by a specific group of customers (eg. recreation
Use Permit, etc.)..
full -cost recovery of providing services to specific users,
and other indirect costs?
modate requests for services while ensuring that taxpayers
d cost? ,
the General Fund subsidize services provided to specific
Service
New
Increase
Potential General Fund
Time
Fee
Fee
Revenues
Frame
Increase Development fees and
X
X
$10, 000 - 50,000
93-96
adopt impact fees.
Fees for Fire Services
X
$35,00041,100,000
93-94
Increase fees by annual
X
. $15,000 - $ 20,000
93-94
inflationary factor (3 - 4 %)
Negligent Cost Recovery:
X
$ 10,000+
93-94
Drunk/Drug Driving
Negligent Fires
`
Hazardous Spills:
Review of Existing Fees for full
X
X
$100,000
93=94
cost recovery and.
to
Establishment of New Fees.
$2,000,000
Use of Consultant for in-depth
review.
Implementation: Fee increases require City Council action. Some are restricted by State law and have
additionalrequirements impacting the implementation process.
11
NEW AND/OR INCRE_ASFD FEES & CHARGES
Fees & Charges
Estimated:
Time
acceptable
Achi 3vable
Comments
Alternatives
Revenue
Frame'
A
B
C
1
2
3
Detailed analysis and
To $2 mil: +
Long -
implementation of full cost
Short
recovery & new fees.
Fire Service Fees;
To 1.08 mil.
Long -
(Paramedic to $1 mil)
Short.
Development Related Fees
To $50,000
Short
(New & Enhanced)
Enhanced Recreation &
To $15,000
Long -
Other "fee" programs.
11_7 few-
Short
Building & Code Enforc.
To $80,000
Long -
Related Fines & Fees
Short
Environmental Services-
To $65,000
Long-
(10% increase in IWM Fee,
Short
Charge for Graffiti, etc.)
Miscellaneous Fees '&
To $75,000
Long -
Charges
Short
J
0
12
NEW AND/OR INCREASED FEES & CHARGES
Employee Review of Departmental Operations
The information provided below was received from City employees in response to a request
from the City Manager to submit their ideas for enhancing the. City's revenues and/or reducing
expenditures and from a review of departmental operations. At this time only those ideas
which are related to revenues are presented. Potential revenues are estimates only and each
proposal will need further evaluation to determine actual revenues.
Revenue Source
Potential Revenue
Fire Service Fees:
1) Paramedic Fee
$1,000,000
2) Permit/Inspections/Plan Checks etc.
70,000
3). Fire Watch/Standby
5,000
4) Equipment Use/Rental
5,000
Subtotal
.1,080,000
Development Related Fees:
1) Increase Existing Fees
10,000
2) Require UUP for new Liquor. License
3,000
3). Establish Impact Fees
301000
4) Traffic Study Fee
5,000
Subtotal
48,000
Human Services:
1) Increase Recreation Fees
10,000
2) Senior Programs
3,000
3) Increase rental rates
5,000
Subtotal
J
1.8,000
Environmental Services:
1) Increase Waste Management Fee
-In 0%) 10,000
2) Charge property owners for Graffiti
Removal 45,000
3) Filing Fee for Annexations
5,000
Subtotal
65,000,
13
Revenue Source
Potential Revenue
Building:
1) Re -inspection fee
2) Annual inspection of rental units
3) Resale & occupancy inspections
Subtotal
$30,000
Code Enforcement:
1) Establish fines for repeat offenses
2) Establish real estate sign violation fine
Subtotal
50,000
Miscellaneous fees & Charges:
1) Increase returned Check Charge
2) Charge groups for participation' in City events
3) Charge for all City Documents
4) General. Increase in all..fees (Inflationary)
5) Business License Processing. Fee
6) Police False Alarms/Calls
7) License program for cats
Subtotal
75,000
Total all Potential Revenues
$1,366,000
•
I f.� "041z! 11
Principle: Specific on -going public services
property, for which an assessmE
revenues generated through asses
Policy Issues: 1) Does. the use of .the prof
equitable means of fundi
properties being assessed?
2). Will the use of assessment
benefit specific properties`
3) Does the assessment
services to those vro
�`C�3•. y�� i .r y
or may be provided which , provide a benefit to identifiable
may be charged to pay for the service provided. Use of
nts are restricted to specific purposes.
d assessments
meet
the City's criteria for
providing
an
public services
and
facilities which provide
a. benefit
to
reduce the subsidy of general taxes to provide services which
appropriate level of resources needed to furnish specified
Benefit Assessment
New
Increase
Projected General .
Time
Districts
Fee
Fee
Fund Revenues
Frame
Citywide Maintenance
X
(1 % _ $ 27,000)
93-96
$680,000
Sewer Assessment
X
- $ 35,000+
93-94
($1 increase = $35,000)
1982 Street Maintenance
X
$335,000
93-95
Graffiti Abatement .
X
$300,000
94-96
Fire Assessment
X
Up to $6,000,000
94-96
District
Implementation: New:. and increased assessments require Council action and must comply with mailed
noticing, hearing and otheIl statutory requirements, including election under certain
circumstances.
NEW AND/OR REAASASS SESSMENTS
.INC S
Assessment
Estimated
Time
Acceptable'
Achievable'
Comments
Alternatives
Revenue
Frame'
A
B
C
1
2
3
Use of Assessments as
As
Short -
.Revenue Alternatives
Warranted
Long
Citywide Maintenance
To $680,000
Short!'
.District (1% = $27,000)
Sewer Assessment
As
Short
($1 increase = $359000)
Warranted
1
1982 Street Maintenance
$335,000+
Long
District
Fire Assessment District
To $6 mil.
Long��
Graffiti Abatement -
To $300,000
Long
Community Services District
1/1
' Time Frame: Long term assumes that the earliest new revenues may be realized is FY 1995-96 or beyond. Short term assumes a portion
or all of the revenue may be realized within or by FY 1994-95.
2 Acceptable: Alternatives may be ranked as to their acceptability with "A" being very acceptable and "C" not acceptable at this time.
' Achievable: Alternatives may be ranked as to the ease, timeliness and cost associated with ultimately achieving the estimated revenue, with
"1" being the simplest to do and " Y being the most difficult.
16
SPECIAL TAX LEVY
Principle: Voters may be requested to consider the adoption of a special tax levy to fund a specific
activity. This funding source is generally used when other revenues are not sufficient
to maintain a certain, desired level of public service. This process allows voters to
control or designate the purpose for which these funds will be used.
Policy Issues: 1) Should a special tax be used to meet a specific need which is not being funded
by other means?
2) What are the types of services, both legally and by City Council direction
should be considered to be funded by this revenue source (eg. public safety or
infrastructure)?
Potential Special Tax
Potential General Fund
Revenues
Time
Frame
Public Safety
Up to $22 million
94-96
Infrastructure Street Maintenance
$335,000*
94-96
G.O. Bonds or Limited Obligation Bonds
alternative financing. for Civic Center)
(eg.
$2+ million
94-96
Implementation: The levy of a special tax requires the City Council to place measure on the ballot
and must receive 2/3 voter approval.to be enacted.
*Note - only reflects the current cost of the street maintenance program paid for out of the General .
Fund.
17
�1�3
QXA
SPECIAL TAX LEVY
Special Tax
Estimated
Time
Acceptable2
Achievable3
Comments
Alternatives
Revenue
Framer
A
B
C
1
2
3
Use of Special Tax Levy
As
Short -
Warranted
Long
For Public Safety
To $22 mil.
Short -
Long
For Street Maintenance
$3359000+
Short -
IqA
Long
G.O. Bonds for
$2 + mil
Short-
Infrastructure, Civic Center
Long
1 Time Frame: Long term assumes that the earliest new revenues may be realized is FY 1995-96 or beyond. Short term
assumes a portion or all of the revenue may be realized within or by FY 1994-95.
Z Acceptable: Alternatives may be ranked as to their acceptability with "A" being very acceptable and "C" not
acceptable at this time.
3 Achievable: ~Alternatives may be ranked as to the ease, timeliness and cost associated with ultimately achieving the
estimated revenue, with "1" being the simplest to do and "3" being the most difficult.
a
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GENERAL TAX LEVY
Principle: The City Council.may consider the adoption of a general tax levy to fund public services
and operations. This funding source is generally used when other revenues are not
sufficient to maintain a certain, desired level of public service or it is necessary to meet
a. significant unfunded need.
Policy Issues: 1) Does there exist both tt
provide critical public se
2) Is it equitable to use loca
on local government b,
revenues?
r
demand for and the lack of any other resources to
vices?
taxing authority to assume the financial burden placed
the State's budget actions taken to reduce local
FYamnlp O'rpac fnr Cnncir1aratinn
Potential General Tax. Levy
Potential General Fund
Revenues
Time
Frame
Utility User Tax
1 % = $1,000,000
93-on
Increase Franchise and/or TOT
As Warranted
93-on
Enhance Scope of BKK Bus. Lic.(eg. energy
generation, methanol production)
I
$300,000 to $400,000
(Power - 1 % _ $24,000)
94-96
Levy full Business License.Tax
I
$50,000 - $100,000
94-95
Increased Business License Tax - Restructure
(i.e. move to a gross receipts basis)
$30,000 - $700,000
93-96
Implementation: , The levy of a general tax_ requires City Council action and may at the discretion of the
Council be put before the voters on an advisory basis.
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