9. SR 08-03-2009 - Laserfiche WebLink

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property goes down and the tax rate stays the same, the property will owe less in tax. If the tax rate goes up, the property may still have a reduction in tax due depending upon if the individual property value decreased more or less than the total NTC. At this point there are too many variables to calculate precisely the tax rate or tax impact for 2010. That said, below are a few examples of what the impact would be using the preliminary NTC data. These examples exclude the County TIF error correction tax rate of .160. If the 2010 tax levy is set to include the same amount of revenue from property tax and state aids is in the adopted 2009 budget the levy would increase to $11,878,848, a six percent increase, and the tax rate would be 47.731. The 2009 tax rate (excluding the TIF correction) is 43.120. I selected a home in Trott Brook Farms and an industrial property in Elk Park Center to determine the impact of this tax rate increase. The residential property’s value decreased 8.6 percent to 237,400. The property owner’s tax for 2010 would increase $13. A commercial or industrial (C/I) property with a value of $1,480,800 that did not change from 2009 to 2010 would have a tax increase of $1,331. If the 2010 tax levy is set to achieve the same tax rate as this year, the total levy would decrease by $459,471 or 4.11 percent and the general fund total tax and aid revenue would decrease by $926,488. Under this scenario the same residential property state above would have a $97 decrease in its tax bill. The C/I property’s tax would not change. If the 2010 tax levy is set to increase five percent, the residential property tax would change less than $1. The C/I property would increase $1,182. The important item to keep in mind is that because most residential property values have decreased in value, even if the tax rate increases, taxes on these properties would decrease. On the other hand, most commercial and industrial property, other than downtown property, did not decrease. Therefore, any increase in tax rate will cause most C/I property tax to increase. More information on this will be presented at the meeting. Proposed Budget Summary The proposed 2010 budgeted expenditures are similar to the 2009 amended budget. The proposal is based on no new employees, no cost of living increase, a five percent increase in flexible benefit contributions, and only necessary price increases in other categories. There are no program additions that require significant new or increased funding. Revenues for 2010 are projected to decrease slightly because of decreased development activity and flat or lower actual revenues in other areas. Of course, the tax levy will ultimately determine the amount available to meet expected expenditures. The budget detail will be presented in its entirety on August 10. Finally, there are several items to note about the budgets that will be discussed on Monday. First, the City did not receive funding through the COPS Hiring Recovery Program to hire an additional police officer. The application is being held and will be reconsidered if additional funding becomes available. Second, staff will be prepared to discuss the new law allowing cities to use administrative citations for certain traffic offenses. Chief Beahen will be in attendance to discuss these issues and answer questions about the police department