For the years preceding the 1991 designation of Tax Increment Financing districts, which encompass most of the city, Gifford said it could be argued people were being taxed too much, because fund accounts had large reserves at the end of the year.
For the last eight years or so, during Gifford's tenure beginning in 2006, he said the city purposely has spent down those reserves. It also lowered the city's property tax levy from
The state formerly allowed reserves to build up, but now 15 percent of overall expenses should be left in funds, the general fund being the main one, Gifford said.
Gifford said the council had several major capital and economic development projects it wanted completed using TIF, but the last big one is the public works building, which should be completed in October.
The city carried out about
The upcoming fiscal year, which begins
For fiscal year 2015,
Gifford said the reasoning behind ramping down TIF partially is because the excess reserves have been spent down, and the general fund needs to be fed yearly from property taxes. Ramping down also is due to the completion of big projects, Gifford said.
"Sure, we could come up with more projects, but that's not how the state wants you to use TIF," Gifford said.
After spending more than it was bringing in each year for years, the city will have to balance expenses and revenues, while aiming to end the year with a 15 percent general fund cash reserve, Gifford said.
Sattler presented a fiscal year 2015 budget that is about
"But that's an ever-evolving number," she said.
Other cuts and adjustments are contemplated, Sattler said.
Sattler urged the council to look ahead. She cautioned commercial property tax rollbacks may or may not be backfilled by the state, which could mean less revenue for the city.
Gifford said the council will have to decide what level of service it wants to provide. Since it has been spending more than it's been taking in, ramping down services or upping fees or taxes must be considered, he said.
He will present various options to the council Wednesday. By the end of that meeting, the tax levy must be set to meet state deadlines, Gifford said.
Sattler said the fiscal year 2015 budget estimates
Revenue from property taxes for fiscal year 2015 is about
Revenue from local-option sales taxes was
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