Minutes 05/11/1971 - Laserfiche WebLink

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, , - STATEMENT OF CITY MANAGER NOIAND PRELIMINARY TO BUDGET MESSAGE THE TAX STRUCTURE May 11, 1971 In a departure from the usual practice of making public disclosure of the City Manager's suggested tax rate as a part of the Budget Message, the gravity of the situation, and the public interest in the tax rate for the next fiscal year, causes me to make public now my suggestion as to tax rates for the next fiscal year. r-- It is recommended that the rate on personal property and on machinery and tools remain at $2.25 per $100 evaluation, because these two categories have not been involved in the ratio change or reassessment program, in the sense that the real estate tax structure Is now undergoing significant change. Keeping in mind that the tax valuation of Public Service Corporations is established by the State, it is recommended that Council adopt a tax rate of $2.00 per $100 of assessed evaluation on real estate and the property of Public Service Corpora tions . While the rate on all four categories of property is $2.25 during the current year, the lowering of the nominal rate from $2.25 to $2.00 is not, unfortunately, a proposed reduction in the amount of taxes people will pay, but rather this lower nominal rate would result in a significant increase in the actual amount to be paid on most properties. As it was pointed out very clearly by City Council, in discussion of this matter last Fall, there was no way to foresee what the City's financial needs would be at this time. Faced with this reality, and with the Charter limitation of $2.25 as a real property tax rate, Council wisely determined to change the assessment ratio from 50 per cent to 60 per cent, in the reassessment and re-evaluation program now nearing completion. In recent years the quadrennial reassessment of property, and its re-evaluation for tax purposes, as required by law, has reflected increased values commensurate with the general inflation which is all too well known to everyone. Thus, except in unusual r' cases where deterioration or related factors cause the fair market value of properties to decrease, each quadrennial reassessment and re-evaluation has resulted in increased taxable values. In this process, citizens are now being afforded the opportunity to use their right to compare their own assessments with other properties and, where they feel errors have been made, to secure a review and possible change by the Board of Equaliza.. tion, now sitting. And from this Bo~rd of Equalization, there is recourse to the Corpo- ration Court. The subject now is the property tax rate and structure. In the current fiscal year about 27 per cent of the City's total revenue is represented by such a tax. The City Council controls the tax rate, as it controls the rate structure of the City's electric, and water and sewer utilities, which self-sustaining utilities together represent about 35 per cent . .,.,. '. ~ ~_'_'~_'''~';'M'''_~'".__"_~____,~,,_._.~_~~,