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City staff outline NNR and voter‑approval tax rates; council leans toward VATR for flexibility
Summary
Finance staff showed certified values fell 4.5%, producing a no-new-revenue rate of 53.53¢ and a voter-approval tax rate (VATR) of 55.15¢. Staff said the VATR would generate roughly $535,000 and recommended setting the maximum proposed tax rate at the VATR on Aug. 11 to preserve flexibility.
Finance Director Anna presented updated certified net taxable values and explained how declining values increase the tax rate needed to maintain revenue. She gave the no-new-revenue (NNR) rate as 53.53¢ and the voter-approval tax rate (VATR) as 55.15¢, and noted that a one-cent change in rate equals about $320,000 in revenue for the city.
"So our no new revenue tax rate is 53.53... and the voter approval tax rate... is 55.15¢," Anna said, adding that the VATR would generate about $535,000 more revenue. Staff recommended setting the maximum proposed tax rate at the VATR on Aug. 11 so the council retains flexibility to adopt a lower rate in September; council members generally agreed that setting a higher maximum preserves options rather than locking the city out of potential revenue if needed.
Staff also explained that some proposed positions (two firefighters, one patrol officer, an IT administrator and a senior program administrator) could be funded under the VATR but not under the NNR, and that moving positions into the recurring budget would require finding recurring revenue to replace one‑time fund balance draws used elsewhere.
