FAQs

Budget refers to the entire cost to operate the City, including its forecasted revenues and expenses. If the City proposed a budget increase, that refers to how much more tax revenue is being collected from the taxpayers to fund the City operations.

For example - If budget increases by 2%, that means that as a whole, the City is collecting 2% more in tax revenue than the previous year. This does not necessarily mean that each person's property taxes will increase by 2%. Taxation is a separate component, different from budget, referred to as tax policy.

Once budget is set for the year, the City knows how much total tax dollars it needs to collect. Property taxes are then calculated by multiplying the individual property tax assessment by a tax rate. There are specific tax rates for each different type of property class. These rates are calculated and proposed to City Council each year, as Council decides how much tax dollars are to be collected by each property class.

The operating budget funds all the services provided by the City and is primarily funded by property taxes and user fees, including utility charges. The capital budget relates to replacement and repair of assets and infrastructure and is primarily funded by property taxes, grants, debt, reserves and land development charges.