According to city Finance Director Steve Hoglund, the tax hike will produce an estimated $44,382 in increased revenue.
During Council discussion on Monday night, Councilman Ryan Walters said the city should always take the one-percent hike because, “It’s not really a one-percent tax rate increase, but a one-percent increase in the tax the city collects.” With inflation above one-percent, he said, “We are always pretty much losing ground on property tax.”
Under state law, governments may take tai hikes of one-percent each year without putting the matter to the voters.
Walters pointed out that the city has nearly $8-million in reserves in the General Fund, equal to about 100-percent of the fund. He viewed that as a problem because, “It’s people’s tax money we’re taking and not providing services, though we will in the future.”
“Astounding” is how Council member Brian Geer termed the amount in light of the the recession in the last few years. He said the city has worked pretty hard over the last eight years to have $8-million in reserves.
Council member Erica Picket said it’s a “foreign concept” to think it’s too much.
Council member Eric Johnson said, “We need to have a discussion on how big a reserve we need.” He said he thought it is a good question for the City Council to ask. “It my be $8-million, it may be $6-million or could be $20-million, but at least the Council should talk about it.”
Mayor Maxwell said, “We’ve put together a balanced budget for the last 20 years and I hope the next administration makes sure they do exactly the same thing.”