Complete Document - City of Auburn

City of AuburnRevenue Overviewincrease in the number of businesses conducting operations in Auburn as well as thesuccess of individual businesses and the Finance Department’s enforcement efforts.The City Council enacted an ordinance, effective January 1, 2000, revising the businesslicense ordinance fee structure. The objective of the revised ordinance was to improve theequity and consistency of the fee structure, not to increase business license revenue. Underthe previous fee structure, some business license fees were calculated based on thebusiness' gross receipts in the prior year, some were flat fees, some were per-item fees,some had maximum fees and some fees were unlimited. An analysis conducted at the end ofthe business license renewal period in March 2000, showed that the growth in businesslicense fee revenue was the result of growth in the businesses’ gross receipts, i.e. that thegoal of a revenue-neutral change in the license fee structure was achieved. In the threeyears since the ordinance was adopted, business license fees have increased by 33.2%.Solid waste collection fee: The City currently provides collection services for residentialcustomers and small business operations. A per household monthly fee increase from$20.00 to $22.00 for back yard service went into effect October 1, 2001. The rate forcurbside service did not change and remained $15.50 per month. Residential customers aregiven the option to choose the less costly front yard pickup service. The option, whichbecame effective in October 1999, has resulted in approximately 65.6% of householdselecting to change from back yard to front yard service in the last year. The robust newhousing market in Auburn contributes to the increase in this revenue source.Ad valorem (property) tax: Effective October 1, 1996, the City’s property tax rate is 54 millson the assessed value of all taxable property within the city limits. Of this amount, 5 mills arerevenue to the General Fund for general governmental purposes, 5 mills are allocated to adebt service fund to amortize bonded debt for capital improvements approved by the City’svoters, 19 mills provide revenue for the school board, 8 mills are earmarked for Statepurposes, 2.5 mills are revenue to the county hospital and 14.5 mills belong to the countytreasury. Increases in this revenue source, an average 6.98% for the previous five years,reflect increases in assessed valuations and significant residential and commercialconstruction activity, as well as continuing annexations by the City.Less significant General Fund revenue sources include court fines; franchise fees; buildingpermit fees; taxes on hotel room rates, gasoline, liquor and cigarettes; grants; interest on idlefunds; fees for services; and revenues shared by the State government.Special Revenue Funds RevenuesThe largest revenue sources for the City’s budgeted special revenue funds include the advalorem tax described above, which provides resources to the two school tax funds foreducation purposes, and gasoline taxes levied by the City and the State, which areearmarked for street construction and maintenance.Debt Service Funds RevenuesThe primary revenue sources of the City’s debt service funds are the ad valorem taxdescribed above, investment income and resources transferred from the General Fund.57