City Commissioners will be asked to set public hearings on the proposed budget, tax increases and assessments during their July 5 meeting.
Commissioners have been discussing the proposed budget during multiple public meetings over the last few weeks. About three members of the public combined have attended those meetings.
During tonight’s meeting, commissioners will be asked to set a public hearing for July 19 on the budget and taxes. They’ll be asked to set public hearings on the park district, Portage Meadows, Boulevard District, street maintenance and special lighting district assessments during their Aug. 2 meeting.
They’ll also discuss the budget and use of federal COVID relief funds during their July 5 work session.
City Commissioners supporting tax increase in proposed budget
Municipal governments are limited by state law on how much they can raise taxes annually and the rate is half of the three year average rate of inflation. That typically doesn’t generate much in terms of new tax revenue for the city, but as the national inflation levels rise, those figures could also increase.
The city did not take the inflationary factor for the last two budget years due to COVID and “is unable to provide the same level of service while not utilizing the inflationary factor for a third discal year and is therefore recommending the full use of the inflationary factor…which includes carryover mills from the prior two years,” according to the staff report.
City continuing budget discussion
For the fiscal year that began July 1, the allowable inflationary factor is 1.77 percent, which equates to $306,901 of additional revenue for the general fund.
For the budget year than ended June 30, the allowable inflationary factor was 0.93 percent, which equates to $157,843 of additional revenue.
For the budget year that ended June 30, 2021, the allowable inflationary factor was 1.05 percent, which equates to $176,947 of additional revenue, according to the city finance office.
City holding special meeting to discuss budget proposal
Those three years combined totals $641,691 in additional revenue for general fund services, which include public safety.
For comparison, the cost of a new fire engine is about $750,000, according to Great Falls Fire Rescue.
The city is projecting $22.9 million in tax revenue for the upcoming budget in the general fund, the proposed police and fire budgets are $27.4 million.
Staff is also recommending taking the permissive medical levy, for an additional 1.43 percent property tax increase, for health insurance premiums. That will provide $248,305 in revenue to offset those premiums, which increased three percent this year, according to the city finance office.
Commissioners review proposed city budget, tax increases
If the commission approves taking the full inflationary increase, that’s an $8.36 increase on a house with a $100,000 taxable value, according to the city finance office. It’s a $16.72 increase on a house with a $200,000 taxable value.
The full permissive medical levy, which would add $248,305 in new revenue, with an impact of $3.23 on $100,000 house and $6.47 on a $200,000 house.
City officials begin budget development discussion, tax increases likely
The total impact to a property owner with a residential home with a taxable value of $100,000 would be $11.59 for the year, according to the finance office.
Commissioners said during a June 29 work session that they would support taking the full inflationary factor and permissive medical levy.
Staff are also proposing to use $1.2 million in CARES Act funds and a portion of the undesignated fund balance to balance the budget.
City approves $1.3 million in ARPA funds to refurbish fire engines
City policy is to maintain a 22 percent fund balance, which is about a month’s worth of operating expenses to cover any cash flow issues or unexpected expenses. This year’s projected fund balance is $7.8 million, or 20.83 percent of expenses, according to the city finance office.
Staff is proposing a 12 percent increase for the Boulevard District, which maintains more than 15,00 street trees in the district.
That equates to an increase of $10.29 for the average size lot to cover the increased costs to the district, according to staff. The assessment is about $0.012812 per square foot for a total of about $96 for the year for the average size lot of 7,500 square feet.
City finalizing plans for use of ARPA funds; beginning discussion of public safety levy
The last district increase was 5 percent in 2019. There were no increases during the pandemic.
Staff is also proposing a 5 percent increase the Portage Meadows assessment, which was established in 1977 for that neighborhood and covers the cost of materials, snow removal labor, water, moving labor, fertilizer costs and labor, aerification labor and tree pruning.
The increase is about $17.45 for the average size lot in that district for a total of $0.081393 per square foot, or about $366 for an average lot in the district of 4,501 square feet, according to the finance office.
There were no increases during the pandemic and the last increase was 5 percent in 2019.
