NOLANVILLE — City Council members unanimously approved a proposed ad valorem tax rate lower than last year’s for the 2015 fiscal year.
By adopting the effective tax rate, the city will achieve the same amount of revenue as last year from 50.54 cents per $100 of property valuation, Finance Director Stephen Peters said.
“It’s going to be a reduction to the citizens of a few pennies,” Peters said.
The council had the option of keeping last year’s rate, which was 51.18 cents per $100 valuation.
However, due to an $8.6 million increase in property values, taxpayers would actually pay more if the rate remained constant, Mayor Christina Rosenthal said.
“If we keep the same tax rate, we have to tell (taxpayers) that their taxes have gone up,” she said at a workshop held before Thursday’s council meeting.
Another option was adopting the rollback rate, which would generate 8 percent more revenue than last year, but since the area is growing, officials decided to adopt a lower rate.
“There will be new property taxes next year,” Peters said. “That will impact next year’s discussion.”
With $40,000 in expenditures not coming out of taxpayers’ money, Peters said the city is doing well financially. He added that if the city does not hire a replacement for former city manager Stephen Pearl until November, it will be able to add $20,000 to its reserves.
“When I got here in 2009, the city didn’t have two nickels to rub together,” Peters said. “Now we’re in good shape financially.”
Public hearings on the tax rate will be held Aug. 21 and Sept. 4 before a first reading to adopt the tax rate and FY 2015 budget Sept. 18.
Contact Erinn Callahan at email@example.com or 254-501-7464.