FY20-21 Budget/Levy notice

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 hearing will be on February 19. Here is the Resolution setting the hearing and notice. The notice has two items which need explanation:

  1. 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.
  2. 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.