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Council weighs higher street levy to keep flexibility amid uncertain tax capacity
Summary
City staff proposed a $500,000 street-improvement levy to give budget flexibility after preliminary tax capacity fell; council discussed trade-offs between higher preliminary rates and the ability to move funds if capacity improves.
Staff presented scenarios for funding street improvements and said a larger initial levy would give the council flexibility later. "My suggestion is to actually go with a 500,000 street improvement," the finance staff member said, adding that the $500,000 scenario creates a higher preliminary rate but can be lowered before final certification.
Councilmembers raised concerns about public reaction to a high preliminary rate appearing in published notices; one member said the preliminary number "is gonna look bad when they publish in the paper and people are gonna flip out." Staff emphasized that preliminary rates can be adjusted downward after final capacity figures arrive. The presentation included concrete comparisons: a $300,000 street levy would produce a smaller percentage increase (staff cited 12.5% in one illustrative example) while the $500,000 option was shown at a 17.8% preliminary increase under current assumptions.
