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receipts for 2000, 2001, 2002 and 2003 were $2,378,487, $4,491,922, $9,531,190 and
<br />$8,015,302 respectively. The 2004 Budget includes receipts of $7,089,689. The actual
<br />receipts in 2002 included a one time distnbution of $2,409,701. This increase from the
<br />State is a "catch-up" from prior yeaz conservative estimates. Future annual collections
<br />(based upon the increasing COIT rate) are projected as follows: 2005 and beyond -
<br />$7,160,858per yeaz. Again, these projected revenue streams do not include any growth
<br />rate assumptions for years beyond 2004. The projected 'increase in 2005 and beyond
<br />reflects the impact from the annual tax rate increase only.
<br />The City would not have supported the new County Option Income Tax if it had not been
<br />accompanied by a tandem ordinance which established an additional 6% homestead credit for
<br />property taxpayers. This additional homestead credit increased to 7% and 8% in 1999 and 2000,
<br />respectively, and then remainss at 8% thereafter. Thus, as a result of the passage of this new tax,
<br />City property taxpayers were provided relief through a reduction in their property tax bills while
<br />the City was provided with an additional source of revenue that will eventually slow the growth of
<br />future property tax rate increases.
<br />Other taxes received from the State of Indiana and allocated to various funds within the City in
<br />2004 include the following: auto and commercial vehicle excise taxes ($4,068,297), gasoline tax
<br />($4,826,551), cigazette tax ($522,777), financial institutions tax ($133,188), alcohol
<br />gallonage/state liquor excise taxes ($300,189) and new in 2004 gaming proceeds revenue
<br />($683,000). In the State budget, adopted by the General Assembly, little additional funds have
<br />been available for Local Roads & Street Funds for both the City and County. Therefore, in 2003
<br />the County has adopted a local wheel tax which is based upon vehicle registration. The dollars
<br />allocated to the City, $2,049,626 budgeted in 2004, will be used to repair and resurface City
<br />roads to keep them at appropriate levels. The remaining taxes listed above aze not anticipated to
<br />change significantly over the next several yeazs. The 2004 anticipated levels reflect modest
<br />increases from the prior yeaz and follow general guidelines provided by the State of Indiana. One
<br />additional tax included in this category is the County's Hotel /Motel Tax, which is budgeted at
<br />$1,789,313 for 2004. This tax, which represents a portion of the 6% tax assessed against hotel
<br />and motel billings within the County, is projected to grow at a modest 3 to 4% per yeaz. The
<br />City's portion of the Hotel /Motel Tax is utilized to support operational costs for the Century
<br />Center and marketing costs for the College Football Hall of Fame.
<br />Another significant source of revenue is fees received from rate payers for services provided for
<br />water, sewer and solid waste pick-up. The $32.5 million anticipated revenue for 2004 breaks
<br />down as follows: $15,635,440 for Sewage Works, $12,604,647 for Water Works, $4,055,500 for
<br />the Solid Waste Removal and Recycling Program, $1,359,500 for the Water and Sewer Insurance
<br />Programs and the remaining $154,440 for Project Releaf (a program providing leaf pick-up
<br />throughout the City). Revenue collected from rate payers is generally determined by either a flat
<br />fee chazged per month for the service provided (Solid Waste, Releaf Program and Water/Sewer
<br />Insurance) or by multiplying the volume of services utilized by the current utility rate (water and
<br />sewage).
<br />The City is not anticipating any significant increase in volume of services provided by the utilities
<br />over the next several years. Volume increases will be generated through future annexations and
<br />overall growth within the City which cazmot be accurately projected at this time. Future revenue
<br />can also be impacted by any rate change that may be enacted beyond 2004. Rate increases or
<br />decreases aze determined on a case by case basis and can be impacted by either capital needs or
<br />funding of ongoing operational expenses.
<br />B-6
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