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The tax levy is used to fund the general operations of the City (General Fund), pay the debt
<br />service on the City's outstanding bonds, and to fund the Pavement Management Fund. The
<br />breakdown of the 2017 levy is $754,990 for debt service, $401,500 for roads, and the remaining
<br />$4,197,240 is used in the General Fund. .
<br />Tax Capacity Rate and the Impact of the Tax Lew on Property Owners
<br />The County Assessor provides an annual calculation of the City's tax capacity based on the
<br />annual property revaluation. As of 11/6/2016, the City's taxable market value is $27,410,589.02
<br />with a tax capacity of $30,813,491. When compared to last year, taxable market value has
<br />increased by 8.28% and the tax capacity by 8.06%. As a result of the City's increased tax
<br />capacity, the tax capacity rate will decrease from 17.325% in 2016 to 17.241% in 2017. Using
<br />this tax rate and assuming no change in a property's value, the City's share of the property tax
<br />bill would be: a decrease of $1.98 (-0.48% on a home previously valued at $250,000; a decrease
<br />in tax of $4.20 (-0.48%) on a $500,000 home; a $1,000,000 home will see a decrease of $9.45 (-
<br />0.48%); and a $2,000,000 home has a decrease of $19.95 (0.48%). The actual tax impact on any
<br />particular property will depend on how the property's taxable value changed in relation to the
<br />rest of the City. Tables illustrating a 5% increase in value and a 5% decrease in value are
<br />included in attachment e.
<br />General Fund Budget
<br />General Fund Expenditures
<br />The 2017 expenditure budget is $7,988,364 which is an increase of $279,794 (3.63%) over the
<br />2017 budget. The increase of $159,910 (3.92%) in the Police Department is primarily the result
<br />wage increases due to pay steps/longevity ($45,000), a 2.5% wage that was negotiated with the
<br />police unions ($58,510), and an increase in worker compensation due to a change in our
<br />experience rating ($36,000). Other notable increases are $21,430 (8.8%) in Central Services. An
<br />increase in software licensing costs ($8,000) and the move to a cloud based backup solution
<br />($6,000) account for the most of this increase.
<br />The Planning Department is projected to increase by $55,420. The largest increase would be
<br />$30,000 (Professional Services) for the Navarre Area Plan. Other increases include the
<br />Engineering line item ($10,000) for Comp Plan maps and Meeting Expenses ($9,450) for
<br />community outreach related to the Comp Plan. The department is also planning to purchase
<br />ipads ($3,500) for the planning commission in 2017.
<br />The Parks Department is increasing by $8,350. The main increases ($6,100) is in maintenance
<br />supplies and is needed to replace benches, tables, gates, and other park items that have not been
<br />maintained on a regular basis. Maintenance Building and ground also is being increased by
<br />$1,800 to more accurately reflect current maintenance levels. The major costs in the line item
<br />are: Mowing - $17,800; Big Island Docks - $9,000; Tree Trimming - $5,000; and Sentence to
<br />Serve - $6,779.
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