Davenport's Tentative Tax Rate Is 17 Percent Increase

DAVENPORT | Facing a large drop in assessed property values, Davenport is moving toward raising its property tax rate in the coming 2010-11 budget to make up the deficit in revenues.

Faced with a 22 percent drop in property values and an estimated $3.19 million budget for next year, city commissioners on Monday voted 4-0 to set a tentative tax rate of $7 per $1,000 of taxable property value, a 17 percent increase over the current rate of $5.98. Commissioner Crystal Williams was not at the meeting.

Commissioners can lower the proposed tax rate after public hearings on the budget but they cannot raise it.

City Manager Amy Arrington said a rate of $7.50 would have to be set for the city to earn as much in property tax revenues as it has during the current budget year.

Arrington told commissioners that the city could get by with a small increase to $6 per $1,000 of taxable value, but that would mean "a very basic budget." She suggested the commissioners adopt a tentative tax rate of $6.50 "in case you want to add street resurfacing or sidewalk repair."

But even at that rate, she pointed out, there would be no money to reopen the city's swimming pool next year. The city has not been able to open the pool this summer because of budget constraints. The cost of operating the pool is about $25,000 which mean a cost of 25 cents per $1,000 of taxable value. That would have to be added to the property tax rate for the city to provide that service in 2011.

Whether the pool will make it through the final budget cut is questionable. Mayor Pete Rust said he has not heard one complaint about the pool's being closed. Commissioner Tom Fellows said he was surprised at the lack of reaction.

"I thought I'd get a lot of complaints but I haven't heard one," Fellows said.

There are other cutbacks that would be necessary under a bare bones budget, Arrington said. There would be no money for any salary increases for city employees or for decorating the city over the Christmas holidays. The annual employee Christmas party also would have to be canceled.

Downtown events such as the monthly old car cruise-in also could be affected.

Rust said even at the $6.50 rate, the commissioners would be too limited in their choices of what services to provide. He said he would like to see the tentative rate set at $7 per $1,000 of taxable property "to give us a lot of breathing room."

Even at the $7 rate set by the commission, most city residents would see a decrease in their tax bills because of the drop in their property values, Arrington said.

Commissioners will hold a budget workshop on Aug. 13 beginning at 9 a.m. and will hold public hearings on the budget on Sept. 13 and 27.