The Garden City Telegram
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City looking to hold mill levy steady
Published 6/13/2009 in Local News
By STEPHANIE FARLEY
While the city of Garden City currently is showing a small increase of about $1.8 million in planned general fund expenditures -- partially funded through property tax -- City Finance Director Melinda Hitz and other city staff say they are confident they can keep the city's mill levy stable for 2010.
On Tuesday, city staff will present a proposed $19,113,450 in general fund expenditures for 2010 -- about a 9.3 percent increase over 2009's budget of $17,334,225. Hitz and the commission will address the budget at 1:30 p.m. Tuesday.
Out of the proposed $19,113,450, according to Hitz, the city and departments are looking to cut about $250,000 to $300,000.
While the city still is waiting for valuation numbers, Hitz said she's confident the city can maintain a steady mill levy for 2010. The mill levy is the tax rate applied to the assessed value of property -- a mill is $1 per $1,000 of assessed value. If valuation increases, the number of mills it takes to raise the same amount of money as last year decreases, but if the valuation goes down, the number of mills it takes to raise the same amount of money goes up.
Keeping the mill levy steady is a commission goal for 2010.
During a February retreat, commissioners were looking at a 2010 budget that would take the 2009 mill levy from 37.98 mills to 59.03 mills for 2010 -- if everything was funded as is. "As is" included all department authorized positions and new requested personnel funded at 100 percent, with benefits included; restored funding for the street sealing program at $205,000; and a funding increase to Downtown Vision and Finney County Economic Development Corp. With the budget as is, the commission would've been looking at $2.5 million to $3 million in reductions to hold the mill levy steady.
Hitz feels the current estimate of $250,000 to $300,000 in cuts is more feasible.
And it's a better picture than in 2008, when the commission was going through the 2009 budget process and looking at cuts.
For the 2009 budget, the city settled on a three-mill increase, which meant for the owner of a $100,000 home, property taxes of about $437 for 2009 compared to $402 for 2008.
In order to keep the increase to three mills, city staff and the commission set out to identify $1,618,441 worth of cuts to budget requests they had received from city departments, representing about 11 mills. If the commission had elected to fund the 2009 budget proposals in their entirety, the 2009 mill levy would have been 49.358 compared to 2008's 34.956.
The commission also opted to transfer money from the electric utility fund to reduce the mill levy.
On Tuesday, the city also will hear 2010 budget requests from Downtown Vision for $55,000, which was the amount Downtown Vision was granted for 2009.
FCEDC is requesting $125,000 from the city.
Hitz said the 2010 budget does include the estimated revenue from the quarter-cent sales tax approved in April to help the county cover maintenance of existing buildings, roads, etc., but doesn't include anything budgeted, yet, related to Sunflower Electric Power Corp.'s expansion that would add one 895-megawatt coal-fired plant to the Holcomb site.
Garden City Commission
When: 1 p.m. Tuesday
Where: City Administrative Building, 301 N. Eighth St., Garden City
Download a packed with the materials for Tuesday's meeting.
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Thanks
Thanks to the City Administration and staff for their concern and frugality during these trying times. The citizens of Garden City are fortunate to have you!
Posted by: Chuck Nunn on 6/22/2009
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