Proposed Groton City budget would lower city taxes
Groton — The Groton City Council is considering a budget for the coming fiscal year that would lower the city's tax rate by 0.72 mill, or $72 for every $100,000 of assessed value.
Mayor Keith Hedrick’s proposed $16 million budget would remove the Water Pollution Control Authority from the general fund, covering those costs with user fees rather than taxes.
“We’re steadily working on trying to reduce taxes. We’re maintaining services and we’re reducing taxes at the same time,” Hedrick said.
Due to higher insurance, pension and other nondepartmental costs, the city started the budget process down $700,000, Hedrick said. But shifting WPCA operations, which cost about $1.7 million this year, allowed the city to handle insurance and other rising costs and still lower the mill rate.
The overall city budget represents a decrease of $898,552 from the current fiscal year, and would result in a tax rate of 4.5 mills in the city.
“One of the things we’re trying to do is I’m trying to run the city like a business,” Hedrick said. "We are looking for efficiencies and we are looking for ways that we can do more with less. And we are finding those efficiencies.”
Based on data collected so far, more than three-quarters of city residents would benefit from shifting WPCA costs from taxes to a user fee system.
“Now you will be paying sewer charges not based on the value of your home but based on the amount of water that you use. We think that’s more equitable,” Hedrick said.
The budget proposes two changes in personnel; the city’s economic development specialist would increase from part time to full time, and the city would add one full-time human resources position. Hedrick said this would allow the human resources director to handle larger projects, such as reviewing and updating city policies and procedures.
Hedrick’s budget proposes using $400,000 from the city’s undesignated fund balance for expenses, which still would leave a reserve of 22.5 percent, slightly higher than the current fiscal year.
City Councilors meet next to continue discussing the budget with department heads at 7:30 p.m. Monday in the Municipal Building. The City Council must vote on the overall city budget by May 21.
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