Minutes 11/28/1978 - Laserfiche WebLink

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..~ co TUESDAY NOVEMBER 28~ 1978 (3) Mr. Yeaman's estimates of year-end revenues and expenses show no great problem areas in this year's budget projections. In fact, Mr. Yeaman estimates that the Electric Department will surpass the profit projection even without the budgeted retail rate increase. Also, the $3 million UDAG Grant which the City will receive to pay for enlarging the City's water system will free enough Water and Sewer surplus and Encumbrances to cover most of the deficit in the Sewer Bond Fund. Mechanics: I propose that 8% rebate checks on real estate and machinery-and-tool taxes be mailed in July of 1979. The rebate will total $190,096. The cost to the City for printing~ labor~ computer services and stamps should run between $1,500 and $2~000. The checks will have to be written manually on a mini-computer which must be reprogrammed. This will involve an extra employee for a few weeks. Mr. Noland recommends that~ because of the expense involved, no rebate checks should be written for less than $1.00, Each taxpayer will have to remember to reduce the taxes claimed on his State and Federal tax returns by the amount of the refund. The reason I do not propose a refund on personal property taxes is that I feel that the amount of the average rebate check will be too small to justify the expense and work to write the checks and mail them. We would have to write 6558 checks, and I calculate that each check will average only $4.34. Based on information I received from Mr. Yeaman and Mr. Bouldin, I recommend writing checks rather than crediting the June 5th real estate bills for two reasons: (1) the June 5th bills have already been printed, and a new print- out is impossible because many new assessment cards have already been placed in the computer card file; (2) rebate checks will minimize additional work for Mr. Bouldin's department. The following chart explains the amount of checks that will need to be written and the breakdown of rebates between tax classifications: Tax If Rebate Checks Year's Levy 8% Rebate Real Estate 8981 $ 2,172 ,886 $ 164,796* Real Estate-Public Service 6 103,704 8~296 Machinery & Tools 33 212,549 17,004 Total 9020 $ 2,489,139 $ 190,096 *Figured on collection of 94.803%.