Council adopts 2016 budget package; committee advances municipal electric tax increase to standing committee

The Business, Finance & Budget committee reviewed and forwarded the 2016 budget package (items a–h) to the council. Staff described the proposed calendar-year 2016 budget as a $112,000,000 plan and noted it represents a reduction compared with prior years while funding core services. The package included the tax-levy ordinance, property-tax abatements, special-service-area levy, updated fee schedules, compensation ordinances, motor fuel tax appropriations, and adoption of the 2016 annual budget.

On revenue policy, staff recommended increasing the municipal electric utility tax to recoup about $1,000,000 in lost revenue due to declines in other sources (for example, telecommunications taxes). The manager said the implementation timing reflects utility billing and system changes and would make revenues flow prior to the 2017 budget year. Council members asked for alternatives and raised concerns about options such as increasing property taxes or addressing pension costs. The committee recorded roll-call votes forwarding many budget items; the municipal electric tax measure was discussed further at standing committee and recorded votes showed support with at least one dissenting vote.