City Councilor Claims LO Property Tax Rate Can be Reduced

To All COLA LO Members, 

Last week city Councilor Jeff Gudman published an article in the Review advocating a reduction in the property tax rate.   The purpose he claims is to offset the increasing cost of water bills within the city.   The article can be found at Taxes can be reduced.   In the article councilor gudman states:

Decreasing the city property tax rate by 3 percent or $0.15 decreases potential general fund revenue by approximately $750,000. Due to excellent staff management, the city’s general fund came in better than budget by $3.7 million in 2009/2010 and $2.8 million in 2010/2011. With better budgeting, the city can mitigate $750,000 in forgone property tax revenue and still “bank” money for future projects. Decreasing the city property tax rate by 3 percent or $0.15 per thousand dollars of tax assessed value still results in more city revenue from all sources than the previous year.

This is an interesting concept as city residents continue to complain about the ever increasing costs of water bills and the approved increase of 22% which is scheduled to go into effect in March.   Residents have been deeply impacted by the ever increasing water rates in the community, especially our senior residents on fixed incomes. 

Please notify all members, contacts, and friends.