August 22, 2006

PROPERTY TAX RATE LOWEST SINCE 1990

The Midland City Council gave final approval on Tuesday of the City of Midland FY2006-2007 Budget.  The total amount is $139,874,374.

The Budget contains many highlights including a decreased property tax rate of 5.5 cents, adjustments to the City’s broadband pay plan, a boost to the salaries of police officers and firefighters, an expanded pay plan for police and fire, increased insurance costs, technology upgrades, six additional police officers, and three additional firefighters for new ambulance service in northwest Midland.

The Proposed General Fund Budget is a balanced budget of $63 million with decreased property tax rate 58.70 cents per $100 valuation, with expenditures increasing $2,408,314/3.97%. 

The current Ad Valorem Tax Rate will decrease an estimated 5.5 cents to 58.70 cents per $100 valuation.  This is the largest decrease of the tax rate in 26 years. 

The City is projecting $18.96 million in Sales Tax Revenues.  Compared to the FY06 estimated Sales Tax Revenue as of June 30, 2006, this is a 3% or $729,500 increase.

Expenditures in the proposed 2006-2007 General Fund Budget include a 5% broadband pay adjustment for City employees meeting progression criteria on October 1, 2006.  There will be a 5% market adjustment to the police pay plan. The majority of officers, 145, will also be eligible for consideration of an additional 5% step increase sometime during the fiscal year.  The police department will add six new officers, three of which will work in traffic enforcement.  The fire department will receive a 4% market adjustment.  In addition, 113 firefighters will be eligible for consideration of an additional 5% step increase.  The city will also contribute an additional 1% to the Fireman’s Retirement Fund.  

Overall, the expenditures for all operating funds in FY2007 are $140 million; this represents a 7.67% or $9,958,792 increase.

Contact: Bob McNaughton/Director of Finance at 685.7210

Can't find what you're looking for? Try our search engine.