Projected changes to the City’s primary revenue sources are:

Revenue Source		2005 Original Budget		2005 Revised Estimate		2006 Budget		% Change from Original Budget
Property Taxes		$22,944,686		$22,715,239		$23,837,770		4%
City Sales Tax		$10,145,575		$9,438,000		$9,155,000		(10%)
County Sales Tax		$5,100,000		$5,100,000		$5,100,000		0%
Compensating Use Tax		$4,150,000		$5,700,000		$5,000,000		21%
Storm Water User Fee		$1,900,537		$1,900,537		$2,300,000		21%

The budget proposes no change to the City’s property tax rate of 26.513 mills.

For 2006, it is projected that assessed valuation will increase to $908 million from $867 million (an increase of 4.8%). However, property tax revenues are projected to increase only 4% due to estimated delinquencies of 1%.

City sales tax collections continue to decline due to the construction of new retail centers in neighboring communities. In addition, the implementation of Streamlined Sales Tax legislation has shifted City revenue collections from the sales tax to the compensating use tax. The compensating use tax is projected to increase by 21% in 2006.

As anticipated when the watershed management program was initiated, the storm water user fee will increase from $4.00 per equivalent dwelling unit per month to $4.50. This represents an annual increase of $6.00 per home.