HomeMy WebLinkAbout2009-05-27 09-186 RESOLVECOUNCIL ACTION
Item No.
Date: May 27, 2009
Item/Subject: Resolve, Directing the City Manager to Present a Budget for Council
Consideration that Maintains the Current Tax Rate
Responsible Department: City Council
Commentary:
Councilor Stone has requested that the Council consider adopting a Resolve that would direct the
City Manager to present a budget for FY 2010 that will maintain the City's property tax rate at
$19.05. Given the desire of the Council to keep the rate at or as close as possible to $19.05 for the
coming year, the intent is to outline the nature and extent of the reductions that would be required
to accomplish this goal and the impact that this would have on the operations and services of the
City. This plan would then be used by the City Council to evaluate which of the proposed budget
adjustments to accept or reject. The Council, as always, would retain final decision making
authority and have the ability to add or remove recommended changes. The various Department
Heads have developed and submitted their recommendations on revenue increases and expenditure
reductions that would accomplish both a 2.5% and 5% reduction in the impact of their department
on the City's tax levy, and, should this resolve be approved, these will be used as the starting point
for developing a proposal for Council consideration.
It is our hope that the State will adopt a budget for the coming biennium within the next few days.
This should finalize the State budget's impact on the City for the coming year. In addition, the
Assessing Department is in the final stages of establishing next year's taxable values. When these
two processes are completed, we should know the exact amount of revenue increases/expenditure
reductions that will be required.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Department Head
RD
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City Manager
Finance Director
City Solicitor
Page _ of _
39 186
Assigned to Stone May 27, 2009
CITY OF BANGOR
(TITLE.) Resolve, Directing the City Manager to Present a Budget for Council Consideration that
Maintains the Current Tax Rate
WHEREAS, throughout the budget process, Councilors have expressed a desire that the FY2010 tax
rate be maintained at or as close to the current $19.05 as possible; and
WHEREAS, this desire is based on current economic conditions and how they have impacted property
owners in Bangor due to increased unemployment, lower business activity, and an
increase in the number of individuals and businesses who are facing economic hardships;
and
WHEREAS, the ability to develop a budget to meet this desire has been complicated by significant
proposed reductions in State Aid to municipalities, most notably in Municipal Revenue
Sharing; and
WHEREAS, the City Manager has asked all Department Heads to develop plans that will reduce
property tax revenues necessary to support their Departments by 2.5% and 5%; and
WHEREAS, it is appropriate that the City Manager evaluate these plans and determine, from an
overall City organizational perspective, which proposals can be accepted that will both
achieve a stable tax rate and minimize the effect of cuts on the services provided to our
residents and visitors; and
WHEREAS, the presentation of a budget that achieves a $19.05 tax rate will provide the Council with
a basis from which to develop a final budget that balances the tax rate against the impact
of service reductions; and
WHEREAS, as always, the Council will retain the right to determine which of the Manager's
recommendations will be accepted and to propose and adopt alternatives;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT:
The City Manager is hereby directed to present a budget plan to the City Council for its consideration
that will maintain the City's current $19.05 tax rate for FY2010.
IN CITY COUNCIL
May 27, 2009
Passed
Motion Made and Seconded for Passage
Vote: 8-1
Councilors voting Yes: Bronson, D'Errico,
Gratwick, Hawes, Nealley, Palmer,Stone
and Wheeler
Councilors voting No: Blanchette
Passed
City Clerk
RE S0_1. V F
(TrrLE,) Directing the City Manager to
Pesent a Budget for Council Cons eration
that Maintains the Current Tax Rate
Aulgned to Councilor