Very early in the budget process, before the City Manager even develops his budget, the Council will give him guidance on what tax rate they would like to see. This “guidance rate” is based on a series of Draft Scenarios that the staff generates. The scenarios include data from the commissioner of revenue, public works, utilities and what may happen to funds we get from the State and Feds. Other considerations include use of fund balance (rainy day fund) and the overall economic outlook. At this point in the process, there isn’t much consideration given to specifics: we don’t talk about wether we need to paint the water tower or whatever but you know that, in the back of your mind, you may need some money for those things.
The break-even tax rate for the next fiscal year appears, for right now, to be about $1.06. This is the rate at which your tax bill is *approximately* the same as last year. I say approximately as all of the data are not in yet so this is an estimate. For instance, the State is facing a revenue shortfall and they may reduce the funds that they provide to us for schools and/or public safety. Kind of thinking out loud here, I don’t know that we will be able to hold that $1.06 rate. Even if the State sends the right amount of money, the City added staff last year for zoning inspections and our jail costs are going up due to increased staffing for 287g and the expansion project. The other problem with $1.06 is that with the draft scenarios we have now, it doesn’t appear to fully fund the school’s budget. The schools are on the right track but in an exceedingly difficult place right now and this is not the time to start whacking their numbers down. I have faith in our schools and want to give them every advantage.
So, speaking strictly for myself here, I would like to see the rate as close to break even as possible but it may go up by 1 cent ($1.07) – we have to pay for the enforcement activities that are so crucial to getting our City cleaned up and back on the right track. If the rate did go up one cent, it would increase the average taxpayers bill by about $21/year. Less than $2/month and at that rate it would almost precisely fully fund the schools budget and pay for the zoning enforcement staff that we have hired.
Two things to remember before you start swinging away: These tax scenarios are very early estimates and the opinions on this page are my own. Don’t hang anyone else with my words – only hang me.
November 8, 2007 at 1:15 pm
A valid analysis Andy, but would underline the FY 2009 Budget is a work in
progress – the final product won’t be voted on until next April. The
challenge, as always, is finding a reasonable balance between
funding needs/wants and resources. Some may disagree, but I believe
most citizens want and are willing to pay for good services as long
as those services are provided with efficiency and economy. Our
citizens rightfully expect clear accountability from their city government.
If history is a guide, there will be dozens of budget meetings in the
months ahead and those ARE PUBLIC meetings. The city council
invites citizens to join us.
November 8, 2007 at 10:14 pm
Steve is right, of course. Please do recall that this is very early on in the process.
November 29, 2007 at 10:09 am
This is what garners the most respect from me for all council members…even Steve Randolph ; ) The budgeting process is long and arduous, contentious and exhausting, and I am just talking about watching it. Actually going through it I would imagine is very tough indeed. Good Luck. I have confidence that while I may not agree with every item in the budget, it will be something that works for the city.
Now, about the candy factory….