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:
Bergman
2 Colorio
3 Russell
4 Carlson
Comments