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| City’s mill levy likely to increase |
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| News | |||
| Written by Kristen Waggener | |||
| Wednesday, 08 July 2009 12:39 | |||
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Declining revenues and increasing expenditures have made it nearly impossible for the city to keep the 2010 mill levy at the current level, Louisburg City Council members learned Monday night. City Administrator Jeff Cantrell told council members that to continue city operations as-is, an estimated 3.8-mill increase is needed. That increase would bring the city’s mill levy from 26.084 mills to 29.95 mills. “I think we can stay under 30 (mills),” Cantrell said. The 3.8 mills equals a shortfall of a little more than $160,000 in the city’s estimated 2010 budget. At the council’s March work session, council members expressed their desire to keep the mill levy steady, but reductions in the amount of money the city receives from the state, sales tax revenue declines and the city’s debt service are principal reasons for the city not being able to hold the mill levy steady, Cantrell said. “I don’t know how we don’t at least minimally increase the mill to hold our core services, otherwise it’s like taking a big step back,” Mayor Curt Shreckengaust said. Council members did find a golden lining in the fact that if they do go with a mill increase to fund the budget shortfall, taxpayers wouldn’t see a huge increase on their property tax bills. Valuations in Louisburg declined by approximately $1 million between last year and this year. “It’s not a huge impact to the homeowners,” Shreckengaust said. “I believe it’s something we’re going to have to do.” On a $100,000 home, the 3.8-mill increase would cost about $43 per year. Another fact council members found comforting is that Louisburg has the lowest mill rate among the cities in Miami County. Osawatomie’s mill rate is 48.703; Paola, 40.703; and Spring Hill, 36.685. Though it would not be an immediate fix for the 2010 budget, a suggestion by council member Sid Mitchell received positive response from other council members and city staff. Mitchell suggested implementing a quarter-cent sales tax increase to fund improvement to the city’s streets, which would ease the budget burden imposed by street improvements funded by Louisburg’s general fund. A quarter-cent sales tax increase would require a referendum. “(Residents) wouldn’t have to foot the whole bill, and then we don’t have to raise the mill (in the future),” Mitchell said. Final details of the city’s budget still need to be worked out, Cantrell said, but the general consensus of council members was to continue planning the budget with as small of a mill increase as possible. “I just hate it,” council member Glena Windisch said. A public hearing on the budget has been set for the council’s Aug. 3 meeting, but council members will continue to discuss the budget at their next meeting.
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