Valuation goes down, Florence mill levy goes up
Staff reporter
Florence residents face a tax increase because of lower property values.
"The city is losing value," said Florence City Councilman Randy Mills. "To make the budget work, we had to increase the mill."
The council approved the proposed 2005 budget Thursday that will increase the mill levy from nearly 82 mills to a little more than 84.
The budget was reduced by more than $85,000 from 2004.
"If we don't cut expenses, we're going to have problems in the future," said Mills.
Assessed valuation for Florence continues to decrease. In 2003, the valuation was $1,826,866; 2004, $1,536,194; and 2005, $1,437,828.
A half dozen residents attended the public hearing, asked questions, and voiced concerns.
Jeannie Meirowsky asked if losing the county trash collection at Marion County Park and Lake affected the budget.
Mills said it didn't because it will free up personnel to do other duties. He added rates for Burns and Cedar Point were increased.
Meirowsky also asked if more revenue could be obtained from requiring all plumbers and electricians working within the city limits to obtain a city permit.
Mills said the city's building inspector had been following up on the permits.
"There has been more effort made," Mills said.
Water rates also were increased this year, Mills said, to help cover expenses.
"It looks like we're going to make enough with general fund transfers to cover the expenses," Mills said, "but not enough revenue to cover bonds (without the mill levy increase)."
In the 2005 budget, two new funds were established — capital improvement and equipment fund.
Mills acknowledged past bookkeeping issues.
"Accountants agree what we do (bookkeeping) is archaic," Mills said. "The system needs to be revamped."
Mills said he had been keeping track of the financial situation of the city.
"We're in good financial shape," said Mills. "I keep track of it daily. You'll just have to believe me."
