2009-10 Adopted Budget - City of Hoquiam

Revenue by FundThis section summarizes City operating revenues from 2000 though forecastedamounts that will support the 2009-2010 budget. Operating revenues are divided intothree categories: the general fund, special revenue funds and enterprise funds. Thesefunds collect the vast majority of the revenues of the City. Certain debt service fundsand capital improvement funds also collect revenues, but for specific purposes. Internalservice funds also collect revenue, but from other City Departments. Please review thedebt service and capital improvement sections of this budget document for an analysisof their sources of revenue.Overall, City revenues are on the upswing. General fund revenues had declined anaverage of 0.1% per year from 2000 through 2005. However, this trend reversed in2006 and the 2009-2010 biennium is forecasted to continue this growth. The 2009 and2010 general fund revenues both include a one percent property tax increase in theirestimates.Future property tax increases are now restricted due to Initiative 747, approved by thevoters of Washington State in November of 2001. This initiative limits property taxincreases to 1% per year or the implicit price deflator, whichever is lower, plus newconstruction and improvements. This initiative will severely restrict the City’s ability toraise future General Fund revenues.Special revenue fund sources support specific activities of the City. Primary amongthese sources is:• Cemetery revenues, received almost exclusively from plot sales, provide for theoperation and maintenance of the Cemetery.• Gas tax revenues. These funds, used to support street maintenance, are projectedto remain flat over the foreseeable future.• Ambulance fees and emergency medical services (EMS) property tax levies whichsupport the City’s paramedic services. Ambulance fees are projected to growsteadily over the next few years. The EMS levy is also restricted to 1% growth peryear or the implicit price deflator, due to the passage of Initiative 747.• Hotel-Motel taxes, which are used to support tourism and community event activityof the City.• Real Estate Excise Taxes, are paid on each sale of real estate, provide a resourcefor future facility funding.Water, sewer and storm revenues provide operating and capital improvement resourcesfor the City’s water, sewer, storm and shared utility operations.41