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2010-03-11

2010-03-09

2010-01-19

Agriculture

Lifestyles

Thursday, July 02, 2009 12:13 PM

City, county considering raising tax rate

Economic crunch means ‘further cuts may be necessary’

By JENALEA MYERS, Herald Staff Writer

In the midst of budget season, both Ottawa and Franklin County are considering mill levy increases for next year.

The county commission is looking at an increase of 2 to 3 mills, while the City of Ottawa has discussed an increase of 2 mills.

A mill levy represents the number of dollars a taxpayer must pay on each $1,000 of property valuations.

“All department heads and outside agencies have submitted level or reduced funding requests for next year in recognition of the current economic climate and the financial challenges the county is facing as the result of the decline in revenues for the 2010 budget,” County Administrator Lisa Johnson said.

Expenses like the 13-mile project will affect the 2010 budget, she said.

“The increases in the 2010 budget are predominantly due to an increase in debt to pay for the paving of the 13-mile project and an increase in the county’s employee benefit costs,” Johnson said.

The county’s current levy is 56.731 mills.

A decline in revenue also is a concern for Ottawa, Finance Director Scott Bird said.

“All agencies that the city supports have been warned that further cuts may be necessary,” he said.

Bird commended department directors for the work they’ve done to trim their budgets.

“The department directors have already offered a 2010 general fund budget that is approximately $200,000 less than the 2009 budget,” he said.

Eliminating one full-time position was one reduction the city made, Bird said.

“This resulted from a 2009 retirement and the use of better technology, which created an opportunity to move an existing employee and not rehire to fill that vacated position,” he said.

Savings also have been made through reduced insurance costs and a hiring freeze that may be extended into next year, Bird said.

The city’s current levy is 41.681 mills.

While the statutory deadline to pass the budget is Aug. 25, Bird said the commission hopes to pass it by the end of this month. He said a public hearing prior to the budget passing has yet to be set.

Johnson said a public hearing on the county’s budget and the expected date it would be approved is 6:30 p.m. Aug. 5.

Jenalea Myers can be e-mailed at jmyers@ottawaherald.com.