The Prescott City Council unanimously approved the 2017 city budget at its monthly meeting Monday evening.
The 2017 budget total revenues (which includes taxes, fees, fines, licenses and permits, etc.) to the city were projected to fall in the 2017 budget to $2,583,275 from $2,604,385. The decrease is $17,963, about 0.70%. The proposed property tax levy for the city in next year’s budget is $1,385,470, which will be down $1,393,503, a $8,033 difference or 0.58% less. Debt service spending is also down.
With the lower overall levy, the council decided to take advantage of an allowed 1.31% or $28,500 addition to the levy due to new construction allowance set by state law. Last year the allowance was up to nine percent and the city went about halfway on that allowance to its tax levy. This year was much smaller but the principal the same.
“If you don’t use it you lose it and given the fact state may well freeze such spending and state aid due to its own budget situation, we have to take advantage of the allowance when we have it,” Prescott Mayor David Hovel said. “We need to keep the levy up to a rate where we can do capital projects.”
Read more of this story in this week's print edition of the Prescott Journal. On newsstands and in town Wednesday.