October 13, 2004

Mayor's Comments on Tax Increase

Mayor Dave sent a letter in response to my recent post on his proposed budget that would raise property taxes 5.4%:

Dear Mr. Zellmer:

Thank you for your recent letter regarding the City budget. I, too, am concerned about the rising pressure on property taxes.

In my 2005 budget, I am proposing City spending increases of 3.6 percent, which is comparable to inflation plus City growth. In fact, the increase would be only 1.8 percent if we excluded four major items over which we have little or no control: rising fuel costs, health insurance for our employees, pension fund payments, and debt services.

Yet despite our responsible approach to spending, taxes go up at a much greaterrate than spending increases. The reason is declining and stagnant state aid programs. If state aids had just kept pace with inflation over the past two years, taxes on the average home would be $66.00 lower. Ultimately, the solution to high property taxes is not to gut City services, but to convince the Legislature to
fully fund state aid programs.

State and federal funds ultimately originate in the same pocketbook as property taxes.......

Posted by James Zellmer at October 13, 2004 4:07 PM | Subscribe to this site via RSS:
Posted to Taxes