Minutes 04/11/1978 - Laserfiche WebLink

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396 April 11, 1978 78-126 - The following report from the Municipal Finance Commission on the funding analysis for the 1978-79 budget was presented: "At the regularly scheduled meeting of the Municipal Finance Commission held March 21~ 1978, the Commission reviewed revenue estimates for the 1978-79 operating budget. Although the revenue estimates, as presented by the City Manager and the Director of Finance, are still preliminary estimates at this point in time, it is apparent that an increase in revenue of approximately 7 percent can reasonably be expected for the next fiscal year. It is estimated that the revenue will be capable of supporting the general gdvernmental operations for an additional fiscal year at current service levels, without a major tax in- -crease. Some minor tax and service rate increases may be necessary, budgeting will have to be rigid, and program expansions will have to be denied in order to avoid a major tax increase Nonetheless, it is felt that the revenue growth will approximately offset the increased cost of providing general governmental services. The revenues would likewise support an approximate 7 percent inc~easeinthe local fundin for education. The budget which was presented to the School Board, however, represents a 35 percent increase in local funding. It is inconceivable that an increase approaching that magnitude could be funded without a major tax increase. The proposed funding represents over $3 million of increase local funding, which equates toa 30 cants increase in rea] estate taxes (i.e.,$1.30 rate to $1.60). You will recall that the Commission's budget recommendation last year extensively ad- dressed our concern with the steady growth in the level of School Board funding which has been experienced in recent years. We recommend the following funding limits. 1) A maximum of 36 percent of the total School Board budget to be funded by the City (excluding sales tax returned) 2) A maximum of 39 percent of the City's total local revenues to be allocated to the School Board (including sales tax returned) We continue to consider these limits to represent the maximum share of that the City can afford to bear. Accordingly, we recommend adherence established funding limits. the educational costs to these previously The Commission's budget recommendation for last year ~rovides further information per- taining to the funding limits. A copy of that report is attached for your convenience. Also the tables which comprised Appendices A and B of last year's report have been updated, and the revised editions are attached hereto. By unanimous vote ward the above funding Reed, Chairman" of the members present, the Municipal Finance Commission acted to for- analysis and recommendations to the City Council. Signed by Robert M. Motion of Mr. Wentz and seconded by Mr. Barnes, the report to be received as information: and was adopted by unanimous vote. On motion meeting adjourned. APPROV~ City Cler~ ~