2011 Approved Budget - Laserfiche WebLink

Home

AMUCTIMME41 10=1 To prevent this deficit from occurring, the City must; divest some city assets, defer asset replacements, or increase property taxes. If the City chooses to rely solely on increased property taxes; the City's property tax levy will need to increase by 11 .9% annually over the next 10 years. This is above ani beyond any increase that will be needed to offset operational costs. Again, this is the amount necessary to fullyfimd all streets, parks and trails, and vehicles and equipment over the next 10 years while preserving the City's Street Infrastructure Replacement Fund at existing levels. All other asset replacement fimds will have nominal reserves by 2019. These property tax 4 increases can be somewhat mitigated 'if the City defers some capital replacements. However, this will likely necessitate greater investrnent 'in asset maintenance. It may be prudent to rely on voter-approved bonds to finance the replacement of park system assets in addition to general facilities. Removing these two large categories would reduce the need for a tax levy P mcrease of only 5.3% per year. Financial lLapact Based on the projections noted above, the following table depicts the annual property tax impact necessary to fmance the operational and capital needs for the City's general purpose functions includin.g all, streets, parks and trails, and vehicles and equipment: 111 Anvi a eho ld Propertv Tax B As shown in the above table,, over the next 10 years a typical household will incur an average increase of $142 or 24.4% amually on their property tax bill — holding all other factors constant. �41111641`