Tax rates go up, assessments go down

While assessments have decreased since last year’s property tax notices, the rates by which property owners will be taxed will increase next year.

The City Council unanimously passed a $92.6 million budget that includes an increase from $4 to $4.8 in the primary property tax levy and an increase from 55 to 65 cents in the secondary tax levy. The secondary levy funds debt service on a series of city bonds.

Overall, the city has experienced a decrease of $22 million in the valuation of taxable property. Assistant City Manager Roger Kolman said the tax rate needs to go up to make up the difference.

He said for some residents there would be no change in their tax bills, for others there would be a decrease and for some there would be an increase.

But city resident and former city councilman Dallas Paulson, who spoke when the floor was open to public comment, said the base rate has gone up.

He told InMaricopa after the meeting the property devaluation is like “putting $100 in the bank and only getting $80 back.”

City Manager Brenda Fischer made a presentation to the council on staffing revisions she said would be “revenue neutral.”

She recommended the city hire now for several positions it intended to keep open until January. At the same time, the city could leave open until January jobs it intended to fill now.

She said there was a “higher need” to fill the records clerk position, hire a full-time and half-time librarian, an economic development coordinator and an animal control officer.

The jobs that have less need, Fischer said, include an administrative assistant to the city manager and an animal control officer.

The city also is saving money through the absence of a finance director. Director of Financial Services Cynthia Sneed recently left the city for a private sector job in Phoenix.

Kolman also had two proposed changes. He recommended transfers of $500,000 and $600,000 from the Central Arizona Community College and Banner Health development agreements respectively.

In another action, council passed an agreement of $21,322 for the city’s membership in the Greater Phoenix Economic Development Council. One of the missions of the organization is to bring new jobs to Phoenix and nearby communities.

Economic Development Director Danielle Casey said the renewal agreement with the Central Arizona Regional Economic Development Foundation would be on the next agenda.

The city pays an annual membership of $60,000 to the organization.

The new budget will begin on July 1.