Tax projections complicate budgets
A major slice of the financing pie for area governments is falling into place, but it’s not as hearty as in years past.
The increase in property valuations used by local governments to calculate tax rates is the smallest in 10 years, according to budget estimates released Monday. The slowdown means that governments reliant on property taxes for making ends meet will have to push a little harder to make anticipated expenses and revenues match.
That could squeeze even more programs and services during an already tight budget season, said Craig Weinaug, county administrator.
“It just means that a difficult budget year is more difficult,” Weinaug said.
Budget planners anticipate collecting property taxes on real estate, personal property and utilities assessed at $838.2 million for 2003, up 5.5 percent from this year.
The anticipated increase would be the smallest since a 3.3 percent rise in 1992, and fall short of the average boost of 8.7 percent during each of the past three years.
Driving the decline: A slowdown in new construction, conservative assessments by county appraisers, cuts in personal property on the tax rolls and a decline in state-assessed utilities, said Marion Johnson, county appraiser.
Revenues from property taxes are critical to government programs they finance half of the county’s annual operating budget but Johnson said he didn’t let the county’s budget needs artificially inflate his valuation numbers.
“That’s not my call,” Johnson said. “My call is to establish fair market value.”
Weinaug is busy plugging the valuation estimates plus a few educated guesses about a handful of unresolved valuation issues into his plans for the county’s proposed 2003 budget, to be reviewed by county commissioners beginning July 1.
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County commissioners already have told Weinaug to avoid recommending an increase in property taxes, though a handful of outside agencies have asked for increased financing to make up for state budget cuts. Such requests will be debated in July and possibly into August, when commissioners will make the final call on spending plans.
Many agencies will be left wanting and virtually all county services will be unable to expand to keep up with a growing population, he said, but at least county employees shouldn’t lose their jobs.
“The budget is doable, but not easily doable,” Weinaug said. “The commissioners will not be able to make everybody happy.”
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