Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH THE HUDSON CITY SCHOOL DISTRICT REGARDING INSIDE MILLAGE
Brief Description: Inside millage up to 10 mills is available without voter approval for local use. The City currently is allotted 3.57 mills, of which 3.1 mills flows to the general fund, and the Hudson City Schools are allotted 4.23 mills. This proposal would shift 2 mills from the City's Allocation to the school district.
Body
Legislative History
None
Purpose & Explanation
The proposal would shift 2 mills of inside millage from the City to the School District. An MOU would be used as the vehicle, with an option to terminate with one-year notice.
The potential effect on the budget of the city was summarized as follows, by the City Administration:
The City's General Fund currently has 3.1 mills of inside millage that will generate an estimated $3,675,402 in 2023. The County's re-appraisal of the City is estimated to increase property tax values 27% for 2024. As a conservative measure, we assumed a 20% increase to account for revised estimates from appraisal appeals and delinquencies. As you know, property taxes on inside millage increase as valuations increase.
Assuming a 20% increase in appraised value, the following is the estimated annual property tax revenue the City would forego:
One mill = $1,422,736 ($3,675,402 / 3.1 mils + 20%)
Two mills = $2,845,472 ($3,675,402 / 3.1 mils + 20% x 2)
Attached is the current draft of the General Fund Five Year Plan. We adjusted the plan to remove 2 mills from the General Fund property tax revenue line item. You'll see the General Fund would have a negative balance of $1,172,700 by the end of 2028.
Also attached is the Five-Year Plan draft if we reduced the inside millage and eliminated the funding set aside for future unfunded projects (as highlighted in yellow). In this scenario, we would be below our 40% carryover policy beginning in ...
Click here for full text