Minutes 03/29/2004 - Laserfiche WebLink

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March 29, 2004 additional funding to Schools, I am proposing an increase in the real estate tax rate and the personal property tax rate. The impacts of these taxes are discussed in more detail below. The budget that is brought before you is balanced with reasonable expenditures and reasonable revenue estimates and reflects the actual cost of the services. GENERAL FUND REVENUES The revenues that are coming to the General Fund are up by 5% from FY 04. A number of different trends are occurring within the various revenue categories. With the exception of property taxes, we are estimating very little growth in revenue categories. Looking at several of these major categories, we can get a better understanding of what is occurring. Property taxes. The property tax category is made up of real estate taxes and personal property taxes (taxes on cars, machines, and tools). Before any proposed rate increases, the overall trend in this category is positive with a real estimated growth of 6.1% or just over $4.8 million. Real estate taxes. With the assessed value in the City showing the highest positive growth in more than 15 years, assessments were up 10% over FY 04. This growth in the assessment translates into an estimated $5.1 million in additional revenue. As part of the estimated growth in the Real Estate Tax revenue, there is an estimated increase of $75,000 over FY 04, in the collection of delinquent taxes. This growth is reflective of the Treasurer's increased delinquent collection efforts. Adding in the proposed rate change, going from $1.42 to $1.50 per $100 of value, the total estimated growth in Real Estate Taxes is $7.3 million or about 16.4%. The impact of the rate increase to a citizen with a house that has the average assessed value of $113,188 is an increase of $91 per year or about $7.58 a month. Personal property taxes. With the normal growth in the assessed value of personal property, there is growth of 6.8% or $1.7 million. The positive trend is in the tax collections, which are estimated to grow by more than 3% in the next year, resulting in an increase of $649,903. Due to the implementation of a new delinquent collection process in FY 04, there was a one-time collection increase in the delinquent collections. We can now expect the delinquent collections to return to normal levels in FY 05. As part of the funding for FY 05, there is a proposed increase of 65 cents, making the new rate $5.00 per $100 of value. The estimated revenue from this increase will generate an additional $3.3 million, or 19.8% over the previous year. For a person whose personal property tax bill was $125, with the new rate, the new levy would be $144, for an effective increase of $19 a year or about $1.56 a month. Other local taxes. The other local taxes category is made up of taxes such as the Hotel Tax, Amusement Taxes, and other various taxes. In this category many positive trends are indicating there will be continued growth. The revenues in this category are estimated to increase by 6.4% from FY 04. This growth is estimated to provide an additional $1.5 million. Business, professional and occupational licenses taxes. Due to continued economic development, BPOL taxes are expected to grow by $287,230 or about 5.8%. More significant than the actual growth in the dollar amount is the positive trend that is proving that significant economic growth is occurring. Sales and use taxes. The new development in commercial areas is anticipated to increase the sales and use tax by $457,500, or about 9%. The positive growth in this revenue is an indication of the strong economic conditions and the performance of the retail centers located in the City.