adidas golf trousers 2018 budget shows significant increase in property tax revenue
Over the next three years, 2018 through 2020, that revenue is expected to increase by four to five percent, year over year, at $9 million to $10 million per year.
David Hieber, Oakland County equalization officer, said that a sign of an improving economy and an increase in the taxable value on properties within the county.
value can change in a couple different ways, said Hieber. is the inflation rate under Proposal A. Taxable values are limited to a five percent increase or the rate of inflation with two exceptions being new construction that weren there in prior years and the other being ownership transfers from the prior year. 11px;
Property tax revenue represents about 53 percent of the county annual general fund revenue. About 75 percent of this comes from residential property with the other 25 percent from industrial, commercial, personal and agriculture.
What is Proposal A?
Approved in March 1994 a new system for funding schools
Eliminated the use of local property taxes as a source of school funding and created a new state education tax.
The state sales tax increased from 4 cents to 6 cents on the dollar. The extra two cents was to go to the school aid fund, the state budget for schools.
Required the state lowest funded school districts to receive a basic level of education funding
By the numbers: Property tax revenue
The property tax revenue amounts below relate to the anticipated taxable value for that fiscal year multiplied by the county property tax rate.
Hieber said inflations rates affect property tax revenue because taxable values on homes increase at the rate of inflation or five percent, whichever is less. Since Proposal A was passed in 1994, the highest inflation rate was 4.6 percent.
Hieber said the inflation rate in 2016 was 0.3 percent and 0.9 percent in 2017 while two percent is estimated in 2018.
Inside look at budget process
Laurie Van Pelt, Oakland County Management and Budget Office director, said the process of creating, reviewing and amending the county budget takes place year round. The county fiscal year is Oct. 1 through Sept. 30.
Meeting each week
are constantly talking about the budget year round, said Van Pelt. Executive) L. Brooks Patterson has a budget task force that meets on a regular basis. It usually on a Monday morning and we talk about things that need administrative review. The group is made of myself, the five deputy county executives, Human Resources Director Jordie Kramer and the county executive. Creations of new positions also get reviewed by this group.
major type of item has to get our approval, said Van Pelt. are all on the same floor at the executive building.
According to Van Pelt, the next year budget gets analyzed and fine tuned beginning in December of the previous year, prior to Patterson budget plan being released, which is in April.
happens before the budget plan is released in April so we have an idea of what department constraints we have, said Van Pelt. talk about general salary increase and what going on with property tax revenue.
Each department head that may want to add a new position or do an reorganization of their department must find ways within their existing budget on how to pay for that change ether through revenue or reductions in expenses.