The following information is from a document distributed at the January 8, 2011 budget work session. A pdf file of that document is attached below.
Tax Revenues
Millage
|
Authorization
|
Expiration
|
Original
|
FY2011
|
Gap
|
General Operating
|
City Charter
|
|
7.5
|
6.1682
|
-1.3318
|
Employee Benefit
|
City Charter
|
|
2.5
|
2.0560
|
-04440
|
Transportation
|
City Charter
|
|
2.5
|
2.0560
|
-0.4440
|
Total General Fund
|
|
|
12.5
|
10.2802
|
-2.2198
|
|
|
|
|
|
|
Refuse Collection
|
Council
|
|
3.0
|
2.4670
|
-0.5330
|
Debt
|
Voted
|
FY2014
|
Varied
|
0.5000
|
|
Street Repair
|
Voted
|
FY2013
|
2.0
|
1.9944
|
-00056
|
Park Maint. & Cap.
Impvt
|
Voted
|
FY2014
|
1.1
|
1.0969
|
-0.0031
|
Open Space Acquisition
|
Voted
|
FY2035
|
0.5
|
0.4779
|
-0.0221
|
Subtotal
|
|
|
|
6.5362
|
|
| | | | |
| Total City | | | | 16.8164 | |
The City’s total Taxable
Value is estimated to be $4.46 billion, which is a reduction of 2.0% from FY
2011.
Both Taxable
Values and Tax Rates are expected to decline.
Three Options for Increasing Revenue:
Option #1: Headlee Override With Existing Levies
- Residents could vote for a Headlee Override for the
General Operating Levy to restore it to what the City Charter initially authorized
Council to have levy authority for (which is 7.5 mills). This equates to
approx. $5.9 mil. in restored authorization.
Option #2: Headlee Override With Reduced Levies
- Residents could vote for a Headlee Override which
offsets reductions in other millages. For example:
- A Headlee Override could be sought for the General
Operating Levy in an amount equal to how much the Debt millage is falling from
its FY2O1 1 level. This would keep millage rates flat instead of declining.
Option #3: Restructure the Way the City is Funded
- If a local income tax is approved by voters, the
City’s Charter requires the entire General Operating Levy to be eliminated. This
would substantially reduce the amount of property taxes collected in exchange
for instituting an income tax. The income tax would represent approx. 65% of
tax revenues and property taxes approx. 35%. Depending on how the income tax
would be structured, additional revenue may be possible up to $12 million.
|