Staff briefs council on millage options after state law change; council schedules budget workshops

City staff presented options for setting a proposed maximum millage rate and urged councilors to consider a budget workshop schedule after recent state-level changes to the millage-calculation rules.

Tammy, who staff introduced as the person who has worked most closely on the matter, told the council that last year the city set a rate above the rollback rate and that a recent change — referred to in the presentation as "senate bill 4f" — altered the rollback calculation. Tammy said the rollback rate in the provided spreadsheet is 8.7629. She told the council that adopting a 9.25 millage would generate roughly $200,000 in additional revenue while a 9.0 rate would yield less and offered that some council members prefer to keep numbers even.

Tammy also told councilors staff is reviewing the overall budget impact and estimated the city could face an approximate $400,000 reduction that new businesses and utility revenue might partially offset: "It looks like we might be able to absorb about 400,000 based on new businesses that are coming in," she said. Council members asked follow-up questions about timing and workshops; the council agreed to hold budget workshops in late July (proposed dates included July 20, July 21 and July 28) and to discuss the proposed maximum millage there. No formal vote on a millage rate was recorded at the meeting.

Councilors emphasized they prefer not to raise taxes and said they would work through the budget process to decide whether to set a maximum millage rate at the upcoming session. The city also noted a related CDBG process that will require additional discussion and a small committee to set program rules.