Minutes 06/19/1975 - Laserfiche WebLink

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f~,r' Q...!.U THURSDAY JUNE 19, 1975 * Addendum (Councilman Greene's statement presented to Council) I would like to take a few minutes to try and put the problems that all of us are here to discuss tonight in perspective. Two weeks ago, after three budget sessions, Council voted a balanced budget. A few days later it was brought to Council's attention, for the first time, that the Commissioner of Revenue, D. B. Hanel, had instituted new depreciation percentages in determining the assessed valuation of Machinery and Tools. The new depreciation percentages caused the assessed valuation of Machinery and Tools to increase 110% over this year's valuation. Council had previously balanced the budget by including the 110% Machinery and Tool tax increase in the budget as additional revenue. Certainly, on the surface, it seems unfair for one segment of the community to pay 110% more taxes solely because of a new assessment method. If Council votes to lower the nominal tax rate on Machinery and Tools, the budget will be unbalanced. In addition, we were told today that The Board of Equalization has significantly cut real estate assessed values in the last few days. To date, they have cut $55,000.00 to $60,000.00 in City Revenues and the Board's hearings are not complete. Council will again explore alternatives for balancing the budget. It is my understanding that City Administrators are prepared to announce some more budget cuts and, possible some additions to revenue, but there will still be a deficit which Council will need to discuss. And now some background information that I feel will be helpful: The recently completed appraisal of real estate, which is the first in four years, showed a 24.91% increase in the value of real estate, without adjustments by the Equalization Board, over the 1974 assessed valuation. According to the Department of Labor-Consumers Index, the cost of living has risen 31% over the last four years. During each of the last four years Council faced ever-increasing demands for services coupled with rlslng costs of services. Last year Council instituted a 15% utility tax on commercial and industrial customers and the cost of auto decals was raised from $10.00 to $15.00. Except for these two items, most Martinsville citizens are paying the same prices for City services that they paid four years ago in spite of the fact that the cost of living has increased 31% in these same four years.