Residents Would See Higher Taxes Under Proposed Budget

City homeowners will pay an average of $91 more on their real estate tax bills and city employees could see their first merit increase in several years under the proposed fiscal year 2012 budget.

Commercial property owners will pay an average of $276 less if City Manager Lawrence Hughes’ proposed budget is approved later this year. His proposal also includes merit pay increases for city employees that will range from 1 percent to 4 percent, with department directors getting at least a 2-percent increase.

Residential and commercial property assessments increased for the first time in five years, a sign that the local economy is recovering from years of declining property values. The assessments that were mailed in February far outpaced what city staff estimated for the coming year. Residential property assessments increased an average of 6.9 percent and commercial property assessments increased 1.9 percent.

Hughes proposes in the new budget a real estate tax rate of $1.246 per $100 of assessed value and a fire and rescue tax rate of 17.4 cents. Together, the total is $1.42 cents — 5.2 cents less than the current rates in total. The city will collect less real estate tax revenue but other tax revenues increased. For example, the city collected $250,000 more in property taxes primarily from the Micros Technology expansion. The city also collected more meals, sales and other tax revenue, totaling more than $1 million.

The proposed budget would result in an average tax bill of $2,984 for a single-family homeowner, or a $91 increase. Commercial property owners would pay $16,328 on average, a 1.7 percent decrease. Townhouse owners would see the highest average increase in their bills, at $161.

City residents also will pay 5 percent more for sewer, 2 percent more for water and 5 percent more for electricity. The average water-sewer bill will increase $62.40 per year. The solid waste disposal rate increases 4 percent from $22.79 to $23.64 per month for single-family homes and slightly more for townhouses.

The schools would get $648,000 more for a total of about $47 million.

 The city manager proposes an increase in the fire and rescue tax of 2 cents to fund vehicle replacements (1 cent is $375,000) and five new positions, including three battalion chiefs. The city work force will increase by 11.25 full-time employees to 506 total positions. Five of the new jobs were approved in amendments to the budget last year. The other new jobs are one for the police, one for public works, a human resource analyst, and the five fire and rescue department positions. The average 2.25-percent merit pay increases are based on tenure.

Other projects Hughes proposes in the budget are $325,000 to build a Science, Technology, Engineering and Match Academy at Johnson Learning Center and $325,000 for a management training and development program for the city’s work force. The police department will get additional funding to revitalize its community policing program and there is $5.8 million out of the five-year Capital Improvements Plan that can be used for transportation and parks improvements in fiscal year 2012.

The next city council budget work session is Tuesday, March 30 at the Public Works and Utilities Conference Room. On Monday, April 4, city council members will meet at city hall to discuss the school board budget. The following Monday council members will hold their regularly scheduled meeting to present the council’s proposed budget. Starting April 25, a pubic hearing will be held on the council’s proposed budget in council chambers. The public is encouraged to attend; please see attached Budget Calendar document.

According to the city clerk, the tax rate could decrease as council members continue with their budget work sessions.