City budget shows small surplus as tax rate rises after falling property values

The workshop presentation laid out topline numbers for the proposed budget, with total revenue "just over 9,000,000," total expenditures of about $8,900,000 and a net position increase of roughly $108,000, Presenter said. The presenter told council the general fund, water and sewer would be discussed in more detail later and that the general fund is the primary operating fund supported largely by property tax revenue.

Presenter emphasized the tax-rate increase stems from a fall in taxable values, not a single large rate hike: last year’s taxable value was reported at $588,000,000 and this year’s at about $518,000,000. "When the taxable values come down, your tax rate goes up because there's no new revenue to the city," the presenter said, adding the change translates to about "$5 more on average per household." Staff also noted the general fund remains tight but balanced, with roughly $5.1 million in both revenues and expenses and a small positive variance.

Officials flagged that the city has not yet finalized audits and therefore cannot proceed to the voter‑approval rate calculation; presenter said audits remain outstanding and that council will consider adoption actions on the scheduled September 8 date. The presenter and city manager’s office encouraged council members to review line items and ask for follow‑up on specific details prior to that adoption date.