Grantville is closer to passing its $1.8 million 2019 fiscal budget.
City Manager Al Grieshaber expects the budget ordnance to be adopted on Monday, Aug. 13 at the council’s regularly scheduled meeting.
The budget is based on the rollback millage rate of 4.959. A mill is one dollar of tax for each $1,000 in assessed property value.
“What that means is the proposed budget is balanced without a property tax increase for the residents of the city of Grantville,” Grieshaber said.
Grieshaber said the council is expected to formally adopt the millage rate Monday.
The proposed millage rate of 6.25 for 2017 was an increase of 1.234 mills from the previous year. The millage rate increase was not passed, so the city reverted to the rollback rate.
Under state law, any government that levies property taxes must calculate a rollback millage rate each year.
When property values increase, the same millage rate brings in more revenue. A rollback rate is calculated to bring in the same amount of revenue on existing properties as the previous year’s rate.
The city manager said the budget is balanced without a tax increase “due to the prudent spending habits of the department heads and employees of the city.
“The department heads and employees are fiscally conservative with the tax resources provided by the residents of the city,” Grieshaber said.
The proposed budget provides for a two percent cost of living raise for employees, a 10 percent increase in health care benefits costs and three percent employee retirement contribution.