1992 CC MIN JUN 04 ADJ - Laserfiche WebLink

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neighboring cities. However, further reductions of resources will result in service reductions. It is important to emphasize that this is the first year of a planned financial recovery and as a result must be managed conservatively. City Manager Lewis stated an executive outline of the fiscal proposals, including the Redevelopment Agency is presented in the budget following page 2. Mr. Lewis reviewed the Budget Process saying, the process provides a collective professional effort to insure the continued quality of life in the community within the means of available resources. The projected revenues reflect stablizing economic conditions that are realistic and obtainable. The economic recession has gripped Colton particularly hard. General Fund revenues are projected to decrease by 3% because of last year's one time revenue funds. The major revenues for the General Fund are property taxes, sales tax, state motor vehicle license fees, utility users' fees, and business license taxes. These five revenue sources represent over 70% of the total projected General Fund Revenue for the coming fiscal year. Putting all the revenue together, it is apparent that the strength of the property tax and sales tax are the key to maintaining a healthy revenue base. City Manager Lewis requested the Council consider new revenue sources and fee adjustments once a year in a Master Fee Schedule adjustment. This is a change from previous years when revenue adjustments were brought to the Council at different times throughout the year. It is hoped this will give the Council more of a comprehensive view of the City's revenue and fee structure. Manager Lewis reviewed the Table of new Revenue Sources as follows: Adtnl.Rev. New Rev. Cemetery (City Clerk) Fee $74,893 Bus. Lic. (Finance) Taxes $150,000 Permit Fee (Com.Dev.) Fee $99,158 $72,150 Police Fee $11,175 Ambulance/Inspec.Fee(Fire) Fee $256,570 City Manager Lewis explained the City has been placed on a Federal cease and desist order. The City must make necessary improvements to its waste water treatment program. If the City does not come into compliance the City can be fined up to $25,000 per day of non- compliance. Mr. Lewis said the current fee is $8.25 per month and the proposed fee is $15.60 for an increase of $7.35. The Council discussed the need to increase fees and the hesitancy to approve the full rate increase for the water quality program all at once. The Council requested that staff look at an incremental fee increase. Mayor Gonzales stated the City had to approve the increases to keep the enterprise funds on a paying basis. City Manager Lewis stated that in spite of the increases, the City fees will still be 2 JUN 41992