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Board of Finance workshop: city proposes 36.45 mills as education aid remains unresolved
Summary
At an April 15 Board of Finance budget workshop, staff outlined a proposed city budget and a draft mill rate of 36.45 mills that would raise local property taxes; officials said final figures hinge on state ECS aid and outstanding Board of Education funding requests.
At a Board of Finance work budget workshop on April 15, staff presented a draft city budget that would yield a proposed mill rate of 36.45 mills and raise local property taxes if current assumptions hold. Diane, the presenter, described city-side spending of $91,778,000 — a 2.52% increase from the current year — and said the education side remains unsettled pending state aid numbers.
The budget discussion centered on revenue assumptions and the Board of Education request. Diane said the draft included an 8.58% increase for education and cited $11,764,000 in a slide as a figure associated with the Board of Education portion; the transcript also contains a larger figure presented earlier that appears to describe a different aggregation and is inconsistent in the record. Officials repeatedly cautioned that the city is still waiting for final state ECS figures and that any additional state aid would reduce the mill rate.
"We're conservatively working on spreadsheets that have a $2,000,000 additional ECS number as a baseline," the Mayor said, noting leadership caucus figures at the legislature were expected next week. Diane said ECS changes affect the revenue side and would lower the mill rate rather than change expenditures.
Diane explained the mill-rate calculation: with the general fund expenditures and revenue estimates used in the draft, the tax levy requirement implies the 36.45-mill rate. She said motor vehicle revenues and TIF adjustments were built into the calculation and that the figure represents roughly an 8-mill increase from the current rate. Using assessor data the presenter cited an assessed single-family value of $191,101 and estimated taxes at 36.45 mills would be about $7,664 for that representative property; Diane added that this estimate is “abstract” until final Board of Education and state numbers are available.
Members raised sustainability concerns about one-time savings. A committee member pointed to the recent Axon agreement for police equipment and services, which reduced this year’s police costs; Diane warned that Axon-related costs will recur and that the contract was estimated to increase the police budget by about $288,000 in a future contract year.
Board members also discussed resident relief programs. Officials said the assessor-calculated elderly tax adjustment is fixed for the year and that the Board of Assessment Appeals accepts appeals in March and September. The Mayor noted a newly adopted $500 exemption for homeowners who are 100% disabled through Social Security and that a senior volunteer tax credit is nearing capacity.
The board did not take a formal vote on the budget at the workshop. The Chair said a follow-up meeting will be scheduled once the state releases final ECS numbers; a motion to adjourn was made and approved by voice vote.
Next steps: staff will update the draft after the legislature issues ECS allocations and the Board of Education finalizes its figures, and the Board of Finance will reconvene to consider a final mill-rate recommendation.
