Going Up!

Part two of the review of your property tax bill for 2008

City of Weatherby Lake
Raised levy by 14 cents from last year (8% increase). Better roads, right? No. New Police Car? Nah. More for sewer & water? Not a chance. AC for Community Center? Ask the Women’s Club.

As Paul Harvey says, “And now the rest of the story.”

It’s pretty simple, the City (Mayor and Aldermen) voted to take money from your bank and put it in their bank, the City’s that is. The increase in property taxes reflects a significant amount above projections to meet debt service of city bonds. The City already has $180,000 in reserves for debt service. The 14 cents will add to that total. The debt service is calculated by our financial adviser/bond underwriter Jack Dillingham of Piper Jaffray. There is an amortization table that shows the amount necessary year to year to service the debt. The funds dedicated for this purpose cannot be used for anything other than debt service. The calculation for 2007 was set using the table and based on tax collections and assessed value. It came in a little over projection for 2007. Why would the current administration increase the levy above the table and why would they not explain it? Neither the Mayor’s column in the September/October issue of Weatherby Lake Living nor Alderman Hoy’s meeting summary email (Sept 1) mentions the increase in debt service. I’m not sure what is worse, raising taxes or not owning up to it.