I want to thank all of you who contacted me regarding the property tax item. Your input is critical. As you may be aware, Council took action on the item on Tuesday, May 25. I was very pleased that my colleagues were responsive and voted unanimously with me to maintain the current rate of $1.82 per $100 of assessed valuation. Rather than voting to increase the current rate or create a floating tax rate, that may or may not have led to a higher property tax, we instead agreed to move forward with a plan that combines debt refinancing with delays on certain future capital projects as a way to address this latest revenue shortfall.
The action we took is good news for the community. I heard from many of you who are struggling to make the monthly mortgage payment on loans that now far exceed the value of your home. While staff argued the new floating rate could have led to lower taxes, we are certain the decision made will save the owner of a $200,000 home about $146 over the next two fiscal years.
As I have stated before, we should not be looking at raising taxes before we have thoroughly addressed spending. I believe this is a great example of how we can solve a problem by making financial markets and our strong bond rating work for residents, while at the same time examining spending plans.
If we can continue to make good decisions like the one we made on property taxes, we can be assured that signs of recovery in our city will continue, and we will put ourselves on a path toward recovery and sustainability; a path that leads to brighter days as one of America's greatest cities.
Thank you again for your calls and emails. You are heard and your input is greatly appreciated.