Analysis of Necessary City Property Tax Using 2009 Ammended Budget as a Basis

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By Larry Small

Items to Fund with Property Tax:
Police/FirePublic Safety Sales Tax Uses

Stormwater Enterprise Services

Total 2008 Requirement




2009 Property Tax Mil LevyRequired Property Tax Mil Levy 4.94434.400 $22,229,444$154,670,051
City Property Tax on $262,000 homeProposed Tax on $262,000 home

Annual Property Tax Increase



$1,238 Total in School District 11$1,929 Total in School District 11


Other Revenue Sources:
Base 2% Sales & Use TaxOther Taxes

Charges for Services


All Other Revenue

Total Other Revenue






All City Services (including TOPs) other than Public Safety and Stormwater projects would be funded from Other Revenue Sources
Total 2009 Revenue with 4.944 milsTotal 2009 Revenue with 34.400 mils

Increase in Revenue





Voters would have to waive the TABOR spending limits to permit use of the Property Tax increase
Voters would have to increase the Charter property tax limit
Property Tax % total revenue at 4.944 mils 9.74% Bad
Property Tax % total revenue at 34.400 mils 54.52% Good
Offsets to Property Tax increase:
1. Cancel Public Safety Sales Tax2. Cancel TOPs Tax

3. Cancel Stormwater Enterprise Fee

4. Reduce Base 2% Sales Tax by .5 percent)

5. Elimination of BPPT ($3 million)

Revenue Reductions

2009 Revenue after Ajustments

2009 Budget Revenue

Revenue Increase after Ajustments

















Residential Property Owner Net Annual Tax Increase
1. Cancel Public Safety Sales Tax2. Base Sales Tax Reduction (.5 percent)

2. Cancel TOPs Tax

3. Cancel Stormwater Enterprise Fee

4. Increase Property Tax

5. Fed Tax Deduction on Property Tax Increase

Net Annual Tax Increase






$283 ($23.58 per month)

One Response to Analysis of Necessary City Property Tax Using 2009 Ammended Budget as a Basis

  1. 1. Increase in property will hit both property owners and renters. Sooner or later, landlords will have to pass the increase on tenants. I’d expect $25-$50 increase in rent.
    2. Removing TABOR limits opens the door to constant increases. If the average property tax will be closer to of $5,000 the city may see decline in property values which leads to decline of tax revenues. Example, Syracuse, NY. Remember, there is never enough taxes for a government. It’s a nature of the beast.
    3. During tough economic times, it is absolutely conterproductive to increase property tax.
    4. The city is admitting that Stormwater enterprise fee is a form of tax circumvening the TABOR. That should be eliminated.
    5. Best approach to increase city revenues is to INCREASE sales tax to promote people’s saving and discourage outrageous consumption. On interstate level, city must persue sales tax on on-line purchases.
    Decreasing sales taxes promotes more consumption, more public debt and decrease in wealth of citizens.
    6. Cut G&A. Contract out anything possible.
    7. Impose fees and penalties for loosing in courts. Discourage frivolious suits paid by tax dollars. Increase traffic violation fines.

    September 22, 2009 at 8:24 am