City proposes $21 million budget with no tax increase

During a recent government meeting, Finance Director Laurie Irwin presented the proposed budget for the fiscal year 2024-2025, highlighting a $21 million budget that reflects a $1 million increase from the previous year. The proposed millage rate remains unchanged at 4.5880%, despite an 8.8% increase in property values, which could lead to higher tax bills for residents.

Irwin emphasized the importance of setting the millage rate during this session, noting that while the rate can be adjusted downwards later, increasing it would incur additional costs for notifying residents. The budget allocates 49.1% to personnel costs, with a notable decrease in health insurance expenses due to changes in provider options for city employees.

The meeting also addressed the city's capital expenditures, which have risen by $2 million compared to last year. A new capital fund has been established to better differentiate between operating needs and capital projects across departments. Irwin reported a decrease in operational costs by 2.3% and a significant reduction in property casualty costs, which will be further discussed in the upcoming commission meeting.

The city has seen a 10.4% increase in property values, recovering from previous declines due to storm damage. Irwin noted that the city remains debt-free, with no plans to incur new debt unless necessary for approved projects. The average tax bill for single-family homes is projected at $1,650, with a potential savings of $133.24 if the rollback rate were applied.

The meeting concluded with a discussion on the percentage of homesteaded properties, which stands at 31.62%, indicating a slight increase in homestead designations compared to the previous year. The commission is expected to continue deliberating on the budget and millage rate in the coming weeks.