Sharpen the pencil
Of all the budget-related stories and required legal notices you’ll see published this month in the News-Register, tax asking is one of the numbers that matters the most.
There will be plenty of attention paid to that number in the weeks ahead as local school, city and county boards finalize spending plans for the coming year. And taxpayers would be wise to pay attention, too.
One thing worth remembering is that a taxing entity can collect considerably more money without significantly increasing its tax levy, or in fact increasing it at all. That’s because rising property valuations can generate additional revenue at the same levy rate.
Hamilton County’s total valuation jumped $265 million this year to a record $4.2 billion, fueled in part by new housing and commercial development, along with increases in existing property values. That’s good news when it reflects a growing community, but it also means taxing entities have more revenue available to them.
That’s why taxpayers should look beyond the levy and pay attention to the actual property tax request and the percentage by which that request is growing.
The Aurora City Council provided a good example last week. Council member Esther Bergen pointed out that while the city’s levy had changed little in recent years, its property tax request had climbed from $1.37 million to $1.95 million, representing a 42 percent increase. She questioned whether taxpayers should automatically be asked to pay more simply because their property values have risen.
That’s a conversation worth having at every level of local government. And while we understand that costs have risen, employees need to be paid competitively and reserves need to be rebuilt, there is another reality that shouldn’t be overlooked.
For many local families, $4.85 corn isn’t an abstract statistic. It’s the reality of the family budget and a reflection of the local economy. That ought to be a reminder to every school board member, city council member and county commissioner that now is the time to sharpen the pencil.
We’re not suggesting that every budget needs to be cut to the bone. We are suggesting that every proposed increase deserves a hard look, every new expenditure should have a purpose and every available dollar should be spent as though it came directly out of your own pocket.
Because, of course, it did.
-- Kurt Johnson