City Council Holds the Line On Taxes

Meet the new city tax levy, same as the old city tax levy.

A Monday’s meeting, unanimously adopted its budget for 2011-12. The millages remain the same as they were. The general operating levy is 13.441 mills. The 2001 street debt millage is .1157 mills. The 2004 street debt levy is .4133 mills. The refuse tax is 1.56 mills. In all, the city levy is 15.53 mills, the same as it has been for the last six years.

The owner of a $200,000 home can expect to pay an estimated $1,553 in property taxes to the city for the 2011-12 fiscal year.

Water and sewer charges will remain unchanged.

City leaders said balancing the budget was not easy.

“Getting to this place required layoffs through the years, not replacing employees who left, a wage freeze. I will say that we are holding the line, barely, and I hear a lot of talk about eliminating the personal property tax this fall. That represents 20 percent of our budget,” said Mayor Gretchen Driskell. “So, we’re not out of the woods and I think everybody in this audience needs to know that we are running out of options.”

Members of city council commended city manager Todd Campbell and his staff for their work on the budget.

“It was another very tough budget year. We’ve had a trio of budgets that were very difficult. I compliment you and the staff for being able to succeed and keep the millage the way it has been,” said Councilor Glenn Law. “It would be nice if we could lower (the millage). But we did that once and we’ve paid the piper for that. Just keeping it where it is is a testament to the hard work our city staff have done.”

Councilor Brian Marl said agreed.

“This budget is so prudent, so logical and so conservative, as our budgets have been in the past, that we are able to provide our portion of the general operating for the Saline Area Fire Department through our general fund,” Marl said., noting that the city continues to find ways to avoid executing a special assessment on property values to pay for the department. “I think the citizens ought to know that and that they ought to be pleased.”

Manager Todd Campbell deflected the compliments to city council, city staff and employees.

“City Council gives us the direction to run with it. Then the department heads and front line folks working together (deserve the credit),” Campbell said. “We’ve certainly had to share the costs and share the wage freezes. I certainly appreciate the help. The department heads were grilled by myself and (Finance Director) Lee (Bourgoin) in our one-on-ones, where we say, ‘We know you gave us a reduced budget, but you need to find more.’ And year after year, they’ve done that. I thank all the employees across the organization.”

The property taxes are expected raise to fewer dollars than in 2010-11. The general fund levy is expected to raise $5.6 million, about $140,000 fewer than in 2010-11 and more than $500,000 fewer than in 2008-09. Overall, the general fund budget calls for $8 million revenue and $8.6 million in spending. Spending is up from $8.1 million in 2010-11. Most of the increase is due to a $465,000 increase in capital improvements.

The $1.3 million in spending from the major streets funds was neatly balanced on the revenue side. The budget comes in  more than $250,000 south of the 2010-11 budget.

The local streets budget for 2011-12 is $867,000, about $265,000 more than in 2010-11.

The refuse collection budget was bumped up about $12,000 to $711,000.

The city intends to fund the fire department from existing revenue rather than levy a separate tax. Spending on the is down about $4,000 to $296,000.

The is expecting to spend $16,000 less than it did in 2010-11. More than 80 percent of the center’s $1.5 million budget will come from membership, league, classes and program fees. The city will spend about $120,000 less than it did in 2010-11 to fund the center.

The city plans to spend $2.3 million on public safety, about $70,000 more than in 2010-11. The public works budget will increase from $777,000 to $998,000. Spending on recreation and culture is expectd to increase about $5,000 to $481,000.