As shown in the Revenues by Source schedule, the City has many sources of revenue to pay for the cost of operations and services.  The majority of City revenues are generated from taxes.  The largest three tax revenues are property taxes, County Option Income Tax (COIT) and County Economic Development Income Tax (CEDIT).

State statutes, and/or local ordinances, define how each type of revenue may be used.  Following is a brief explanation of the use of the City's larger revenue streams.

Taxes

Property tax, Commercial Vehicle Excise Tax (CVET), Financial Institution Tax, COIT, and Auto/Aircraft (license) Excise taxes are used exclusively to fund operations of certain City departments. These departments perform executive/finance, public safety, parks and community development work, and include administrative/engineering departments in the Public Works Division.  Most of these funds go into the City's property tax supported funds.

The use of CEDIT revenue is limited by state statute, and City ordinance, to economic development, infrastructure projects and public safety building/equipment purchases.  This revenue also may be pledged for debt service on bonds issued to finance these activities.

The Wheel Tax revenue is derived from Allen County vehicle owners who pay annual motor license excise tax.   A distribution to county, cities and towns within the county is based on the same formula as used for Local Road and Street fund distributions.  These funds must be used to construct, reconstruct, repair and maintain streets and roads.

License & Permits

The largest revenue in the License & Permit category is the Cable Franchise Fees.  These fees are added to cable subscribers' bills.  Forty percent of this revenue is used to pay for the operation of the government access channel with the remainder going into the City's General Fund for operating costs.  All other fees listed go into the General Fund.

Intergovernmental Revenues

Governmental revenues are primarily provided by the State to pay 50% of annual costs of the Pre'77 “pay-as-you-go” public safety pension plan ($10M) and to pay for the Street Department operating costs and projects ($9.7M.)