Taxpayers shouldn’t expect lower tax bills
The proposed budget for the city of Jefferson for the fiscal year starting July 1 includes a 2-cent decrease in the levy rate, from $14.83 (per thousand dollars of taxable valuation) to $14.81. Most taxpayers won’t see a decrease in the city’s portion of their tax bill, though, because property valuations have increased and the rollback has changed.
The rollback is a state-calculated percentage of the total value of a home used for figuring property tax. This year the rollback is 56.92 percent – residential property owners pay tax on 56.92 percent of the valuation of their property. The rollback in the current fiscal year is 55.62 percent – property owners are paying on a smaller portion of their home’s value.
City clerk Diane Kennedy led the city council through the budget at a workshop following the Feb. 12 council meeting.
The total taxable valuation increased $6.1 million to $304.2 million. The budget shows the general fund levy decreasing by 20 cents to $12.48, and the debt service levy increasing by 18 cents to $2.33, for a total levy of $14.81.
Each 1-cent of levy generates $1,380.
The draft budget shows revenues exceeding expenditures by a slim $17,707 in a total budget of $3 million. By the end of the council presentation that $17,707 was claimed by the law enforcement budget.
The city and the county are in the process of updating the 28E agreement for funding the Law Enforcement Center, with the city’s share increasing from 30 percent to 40 percent, and the county’s share decreasing from 70 to 60 percent. The draft budget didn’t include the increase, amounting to an additional $20,000 (total expense to the city of $36,000 in the new fiscal year).
(The county has also asked the city to assume the cost of one dispatcher – $56,000 wages and benefits. The request has been mentioned several times at county supervisors’ meetings as auditor Jane Heun works on that budget, but the city council seemed not to know about it. It is not included in the city budget.)
Changes in the city’s general fund revenue include an increase of $8,000 in police/court fines, a one-time increase of $32,000 from the sale of a fire truck, and $5,000 in revenue from the photo kiosk now at the public library. The budget also estimates sales at the pro shop at the golf course as $16,000 less and sales of beverages, cart rentals and food at the golf course as $8,000 less than in the current year.
Total general fund revenues are listed as $3,024,201, an increase of $110,000 including all sources.
General fund expenditures are pegged at $3,006,494 (not including the additional money for the LEC). That’s an increase of $40,000. The increase includes a 2.5 percent wage increase for union employees (per the contract), funding for the Jefferson police department’s incentive program, an increase in health insurance costs, and an increase in library funding (from $270,000 to $285,000).
The expenditure portion of the budget also includes a decrease of $83,000 compared to last year in the recreation budget as building improvements at the community center are completed; and a decrease of $30,000 for economic development (last year’s budget included $20,000 for a comprehensive plan) and other smaller expenses.
There is an increase of $30,000 in the building department expenses to add funding to help property owners with maintenance projects. That money will be disbursed on a grant-like basis. Neighborhood improvement was set as a priority by the council.
The water and waste water budgets include a 3 percent increase in rates effective July 1, 2019. The sanitation budget shows a $33,000 decrease in expense because the city has now met its obligation to set aside funds for the eventual closure of the Dallas County landfill. (City refuse is taken there.)
Public works director Dave Morlan submitted a budget for maintenance projects totaling $985,000, with $425,000 available in local option sales & service tax (LOSST) to pay for them. Kennedy said he would be asked to prioritize the list to be completed over several years.
The budget was prepared by clerk Kennedy. City administrator Mike Palmer was not at the meeting. Councilman Matt Gordon was also absent.
A public hearing on the 2019-20 budget is scheduled for Tuesday, March 12, at 5:30 pm at the municipal building.
