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Let's Talk Budget: 2025 Tax Calculation and Infrastructure Special Charge
postedWhat Is the Mill Rate?
- The mill rate is the amount of tax payable per $1000 of the assessed value of a property
- Mill is derived from the Latin word “millesimum”, meaning thousandth
- The Mill Rate is calculated by dividing the "Property Tax Levy" / "Net Taxable Property Assessed Value"
- Each taxing jurisdiction (city, county, school district and technical college district) sets its own levy
How are the Property Tax Levy & Net Taxable Property Assessed Value calculated?
- The Property Tax Levy is calculated by subtracting "Budgeted Expenditures" - "Budgeted Revenue (state aid, fees, licenses, etc.)"
- The Net Taxable Property Assessed Value is calculated by the sum of all "Total Real Property" - any adjustments - TIF Increment Value
How is the Taxes on the Average Value Home (TOAH) calculated?
- Property taxes are calculated by ( the Average Home assessed value * Mill Rate)/1,000
2025 Executive Budget Mill Rate:
| 2025 Executive Budget | Referendum Pass | Referendum Fails |
|---|---|---|
| Budget Expenditures | $431,727,657 | $424,727,657 |
| Budget Revenue (state aid, fees, licenses, etc.) | ($113,603,436) | ($128,603,436) |
| Property Tax Levy | $318,124,221 | $296,124,221 |
| Net Taxable Property Assessed Value | $43,684,599,000 | $43,684,599,000 |
| Mill Rate (Property Tax/Assessed Value) | 0.72823% | 0.67787% |
| Average Home Value | $457,300 | $457,300 |
| Taxes (Avg Home Value * Mill Rate) | $3,330+ | $3,100++ plus $76.20 Special Charge |
+Based on 1% all agencies reduction ($3.4M) ++Based on an additional $5.6M Service Reductions, the implementation of a $10M Infrastructure Special Charge & the use of $6.4M Fund Balance. The Infrastructure Special Charge will be invoiced via the Municipal bill | ||
What is the Infrastructure Special Charge?
If the referendum fails a proposed $10 Million Infrastructure Special Charge will cover a partial amount of the cost of providing services under Streets and Traffic Engineering:
- Services include bicycle and pedestrian facilities, pavement markings, traffic signals, street signings, street lighting, communications, street repair and maintenance, and other services such as permits.
- The Infrastructure Special Charge will be applied to all parcels in the City, including city-owned and tax-exempt parcels, based on parcel classification (residential or non-residential). Within those classifications, a trip generation methodology will be applied, which utilizes parking space counts as a reasonable proxy measure for trip generation.
- The charge will be collected via the Municipal bill (water bill), along with the Urban Forestry Special Charge created in 2014 & the Resource Recovery Special Charge created in 2022
- The estimated monthly charge for a single-family home is about $6.35 or ($6.35) * 12 months for $76.20 per year.
Prior Blogs:
2011 to 2024 Budget Balancing Strategies
Alder Yannette Figueroa Cole
District 10, Council President
Contact Alder Figueroa Cole
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