This hearing is required by the new state law on property tax thresholds. The proposed budget includes a modest drop in the levy (approximately 45 cents per $1,000), and a slight increase in the amount of property tax revenue. Our current “Total tax” number from the State’s 71-665 form for FY19-20 is $1,823,756. The projected new number is $1,837,700. This is an increase of .76%. Regarding the new law on the 2% threshold, the group of levies subject to the new law is experiencing a 5.41% decrease. This is because the “Support of Library” and “Debt Service” levy are excluded from the Max Levy Notice. This means this amount could be much higher before the new 4/5’s Council vote threshold (2% increase) and extra hearing notice would have been triggered.
- The Emergency levy has gone up. This is because the State Department of Management discovered a valuation error in the FY19-20 budget, so they had to lower something. The State chose to lower the Emergency levy.
- FICA has dropped because our insurance costs are lower. More information can also be found in in the Budget reports and City Manager’s report for the February 5 Council meeting, which is the meeting where the Resolution will be considered to set the hearing for Feb 19. See City Council meetings/minutes page.