Mayor Henry today announced his administration is prepared to offer to City Council a revised proposal for the 2013 budget. While Henry continues to support the use of the State’s allowable 2.8% tax levy for 2013, he indicated he would not pursue capturing the allowable 2.9% “banked” tax levy from last year. Instead, the administration proposes using a one-time distribution of interest from Legacy funds to place in the City’s cash reserve. The projected amount would be in the range of $3-$4 million depending on the impact of property tax relief from property tax caps, which will be finalized in early 2013.
The proposal would maintain the City’s cash reserve and help taxpayers. By keeping the savings account at 10% of the property tax operating budget, the City is in better position to deal with unanticipated emergencies.
Mayor Henry’s proposal also protects Legacy. By using a one-time distribution of interest from Legacy funds, the City will continue to save resources and invest in projects that will have a long-term, transformational impact on our community.
A final vote on the proposed 2013 budget will occur on Tuesday, Oct. 23. A package of final Legacy recommendations will be presented to City Council on Tuesday, Oct. 30.