How The New Motion To Handle Excess Growth Will Increase Our Taxes


Lets look at some examples:
Based on:
Last Year Budget:    $100,000,000
Projected new growth estimate:   $5,000,000

The new budget would be              Year 1
Prior Year Budget:                   $100,000,000
2.5 increase                                    $2,500,000
New Growth                                  $5,000,000
Total New Budget                      $107,500,000

Our taxes would be based on a $107,500,000 million budget








What if new construction came in at $6,000,000 not $5,000,000?


Current policy as to how we handle new growth:
Apply excess new growth to create tax relief


Prior Year Budget:                   $100,000,000
2.5 increase                                    $1,500,000
New Growth                                  $6,000,000
Total New Budget                      $107,500,000

Year 1 budget would still be $107,500,000.


Proposed policy to not apply excess new growth to tax relief
If new motion in approved:

Prior Year Budget:                   $100,000,000
2.5 increase                                    $2,500,000
New Growth                                  $6,000,000
Total New Budget                      $108,500,000

Year 1 budget would be $108,500,000





Take it one step further look at year  2 with the same $5,000,000 new construction estimate:


Year 2 if we keep current policy:


Prior Year Budget:                   $107,500,000
2.5 increase                                    $2,687,500
New Growth                                  $5,000,000
Total New Budget                      $115,187,500

Our taxes would still be based on a $115,187,500 million budget





Year 2 if we change current policy:


Prior Year Budget:                   $108,500,000
2.5 increase                                    $2,712,500
New Growth                                  $5,000,000
Total New Budget                      $116,212,500


Our taxes would be based on a $116,212,500 million budget

An increase in the budget of $1,025,000! 

That the taxpayers would now have to pay  

  This one motion that looks like nothing will increase our taxes.  A  vote in favor of this change is a vote  to increase your taxes.

 

Kudos to:

  1. Bergman

    2 Colorio 

    3 Russell

    4 Carlson  













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