Decatur’s Property Digest Grew By More than $24 Million
Decatur Metro | May 21, 2012According to a letter from City Manager Peggy Merriss to the Decatur City Commission – included in the meeting materials (page 19) for tonight’s commission gathering – the city’s real property digest increased by 2% over the 2011 digest, with an overall increase of $24,193,180. $24,361,738 is due to “new value” and a $168,558 hit was due to revaluation by the County.
The City Manager is recommending that the city hold its combined millage at 13 mills for the coming fiscal year, with a slight decrease in the capital improvement millage (from 1.1 mills to 1 mill) and increases the debt service millage from 1.32 mills to 1.42 mills. The general operating fund and downtown development authority millage would remain unchanged.
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Am I interpreting this right- the increase in tax revenue taken in by the city is due primarily to new homes or replacement of older homes with newer ones?
And, if the city is operating a surplus already, and revenue is increasing, what are their plans for the extra surplus?
I imagine “New Value” is both new construction and increase in value when a new structure replaces and old one.
As for any surplus, it would be directed to the reserve “rainy day” fund that each municipality is required to maintain.
Anyone know why the Manager is recommending an increase in debt service by about 7.5% ?
Hmmm. I just assumed it was leveraging new revenue to pay down debt faster. Is that not the case?
That could be that case, and if so, it’s a smart move. Interest paid on debt to someone else brings no benefit to Decatur.
She explained it at the meeting. I believe it had to do with reallocating that .1 capital improvements back to debt service now that the Decatur vs. DeKalb HOST ruling had been decided.