Politics & Government

City Manager Proposes $122m Budget, Tax Rate Increase of 3.33 Percent

City Manager Jane Howington has delivered her proposed fiscal 2015 budget and it calls for a tax rate increase of 3.33 percent over last year.

The increase would result in a residential tax rate of $12.10 per $1,000 of assessed value — up from the current year's $11.36 per $1,000. The commercial rate would be $16.77 per $1,000, an increase over the current year's $15.75.

Howington, in her budget message, said the city's challenges are numerous including a decline in revenue streams, increases in pension demands, increased capital needs and contractual obligations.

Howington said her approach to the budget this year was starting with a level funding threshold that encapsulates mandated costs, such as contracts, pensions and utility costs.

Here are some highlights:

  • Total expenditures is $122 million - an increase of 7.04 percent over last year.
  • The general fund tax levy is $69.8m, up 3.62 percent.
  • General fund revenues are $88.5m, up 4.81 percent over last year.
  • Transfers from the general fund to capital projects totals $3.1m and 3.52 percent of total general fund expenditures.
  • One cent on the real property tax rate is $51,642.
  • Motor vehicle tax rate remains $23.45 per $1,000 with a $6,000 initial value exemption.
  • Transfer to the schools is proposed at $22.95m, an increase of 1.75 percent of $395,000 over last year.
The City Council will review the budget in a series of workshops that began last week and will continue on April 30, May 1 and May 22.

The first public hearing on the budget is May 21. The second public hearing is June 11 and the council is expected to adopt the budget at its third budget hearing on June 25.

Stay tuned for more on the budget. In the meantime, read through it yourself by downloading the attached .PDF (click download .PDF next to the image)


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