Five City Council members suggest ways to spend possible $3 million surplus in property tax reveneu | Local Government
The mayor figured her budget based on estimates that property tax revenue would increase 6.5% — generating about $4.5 million more in property tax revenue.
If the city’s overall property valuations increased by 10.7%, the city would see about $2.9 million more. If total valuations increased 8.6%, it would generate an additional $1.5 million. An 11.2% increase would generate an extra $3.2 million.
That’s a significant number. Last year, for instance, property tax revenue exceeded projections by about $440,000.
The mayor proposed a $224.5 million tax-funded budget, $13.5 million (6.4%) more than the current budget. She said the larger increase helps the city get to pre-pandemic budgeting levels and is on track with long-term budget increases. She said in a statement that she supports the proposed modifications.
The two primary sources of funding for the budget are property tax and sales tax revenue. Her proposed budget estimates sales tax revenue will be $84.3 million, an increase of $6.7 million (8.6%).
Gaylor Baird proposed keeping the tax rate unchanged at 31.980 cents per $100 of property valuation. That includes tax levies for the general fund and five smaller funds such as the library and bond payback.
With that tax rate, the owner of an average $201,600 home would pay $644.70 to support city services, assuming that a homeowner’s property valuation didn’t increase.