Millages Expiring in 2021

Rededication Proposal

City of New Orleans
August 17th, 2020

 

Contents
1. Fiscal Landscape Prior to COVID-19
2. Impacts of COVID-19

3. Expiring Millages Background
4. Proposed Millage Rates, Revenues, and Uses

5. Taxpayer Impact
6. Impacts to New Orleans Public Library (NOPL)
7. Timeline
2

 1 FISCAL LANDSCAPE PRIOR
TO COVID-19

Ongoing Financial and Operational Initiatives
The Administration has already undertaken efforts to improve the operational
and financial capacities of the City
Financial

Operational

▪ Shifting Pressures from the City’s
operating to capital budget

▪ Maintaining core government services
while managing emergency situations

▪ Diversifying the City’s revenue and
funding sources → shifting one-time
revenues to one-time expenses

▪ Transitioning to the Zero-Based
Budgeting (ZBB) methodology

▪ Better management of reserve funding
(Emergency Savings Fund)

▪ Implementing the City’s Enterprise
Resource Planning (ERP) system

▪ Assessed and diversified the City’s
investment portfolio

▪ Analyzing shift deployment structures
for public safety agencies
4

 IMPACTS OF COVID-19

Economic Impact of COVID-19
Significant economic impact is expected throughout 2020 and into 2021
LOUISIANA TAX REVENUES HAVE NOT YET RECOVERED FROM THE 2008 GREAT RECESSION

▪ US Real GDP declined 5.0% in Q1.
▪ US Real GDP declined 32.9% in Q2.
- This represents the sharpest economic
contraction in modern American history.

LOUISIANA TAX REVENUE STREAMS IN PRIOR CRISES
HISTORICAL YEAR OVER YEAR CHANGE IN GDP AND TAXES

GDP
Individual Income Tax
Sales Tax
Corporate Tax
Excise Tax
Other Tax
Total Lost Revenue

GREAT RECESSION (2009)

POST KATRINA

-4%
-7%
-12%
-4%
-9%
-16%
-13%

-20%
-28%
-26%
24%
-38%
-1%
-20%

▪ Louisiana Real GDP declined 6.6% in
Q1.
▪ Louisiana Real GDP is expected to
decline at least 10.5% in Q2.
- Updated statistics will be released October.

▪ Unemployment Insurance (UI) Claims
- Since reopening, the City has averaged 44K
total UI Claims per week.
6

 New Orleans is Uniquely Vulnerable and Could Struggle to Recover
COVID-19 health vulnerability vs. Years until real GDP reaches Q1 2020 for
selected peer cities

7

 Sensitivity Analysis

pr?thesiS-based sensitivity. Not meant in be a firm view. AS OF 13 APRIL 2020 . 255% ?5?55% . <?55t.
Dene fer the purposes of testing extreme seenaries only
as an input fer planning

 

 

 

 

 

 

 

 

 

 

 

 

 

A1 ?Muted Recovery? Sensitivity Sensitivity Sensitivity

202D

Baseline Revised Revenue Revised Revenue Revised Revenue Revised Revenue

udget?, Reven ue, Loss, Revenue, ?.45 Less, Revenue, ?In Less, Revenue, ?In Less,

Baseline Baseline Baseline Baseline 
sales Taxes 245.4 155.1 511i. 45.2 145.? 51.? 151.5 155.5 115.? 124.5
Property Taxes 154.5 155.5 5.2 155.5 5.1 155.5 5.1 155.5 5.1
Utility Taxes 12.4 11.2 5515 1.5 11.? 11.5 93% 5.5 11.5 5.5
other Taxes 11.5 15.5 57-5. 1.5 5.5 net. 2.5 5.2 5555 2.5 5.5 2.5
Licenses 5 Permits ?1.s 5.5 ?5.5 5.4 ?2.5 95% 4.1 ?25 5455 4.5
intergovernmental 12.1 12.1 12.1 12.1 12.1 
Service Charges 55.5 55.5 55.2 5.4 52.4 94% 5.5 51.5 5.5
Fines 5. Ferfeits 55.2 25.4 15.5 25.5 11.5 2?.1 12.2 25.2 14.5
interest lneerne 5.5 1.4 4.1 5.5 4.5 5.5 4.5 5.5 4.5
other Revenues 55.5 55.5 2?.5 2.5 2?.1 5.2 25.5 555:. 5.5
Non-Recurring Revenues 55.2 55.2 15555 55.2 55.2 55.2 15555 
General Fund Revenues ?215 55?.5 He'll. 54.5 551.5 5295 5?1.4 755:. 551.5 ?s'llt. 

'1 . A5 provided in City of New Orleans 2020 Proposed Bud-get Book, released in October 2019

 

Revenue Recovery Scenarios

MDT DE El firm view. TDF The

 

 

 

 

 

 

 

 

I'vlajer events .Etirteurisrn retail Utilities Traf?e
lerpeses ef testing extreme scenaries enly as an input fer planning
A1 ?Muted Sensitivity Revenue 

SUSS
. and feed services GDP deellnes by 25% 3%
year ever year etet
- Retail eeP declines by 13% 3%
- Utilities by 10% 3%
. 1MB
. Traf?c?related ?nes decline by 30% tet
bwdd?t??t??r?r?e?t
tifr at "if e5?; esWD??d
Sensitivity Revenue $1i'?lvl Sensitivity Revenue 
WEISS 
SUSS SUSIE:
BUSE- SUSIE:
FUSE- rest. 

SUSS SUSIE:
SUSS SUSIE:

40% 45* 
SUSS SUSIE.
20% 2MB
mutt. 1MB
USS 

a? it?? it?? it? it? it?? 06;? if?? if? a?
if? it?? ?if? at? 5* ?353$ e5 at e? if eff? a? at? Sf? 33:? e9?? seq eff eff

SISDM sensitivity assumes 1i'e?lr deelines ef4E?i'l: in Irate]. 23% in retail. SSE. "n utilities- decline in baf?e. Alt-Hayes are Rely-ted by seasendity.
SISEIM sensitivity assumes deelines sf 575'?: in betel. 335'?: in retail. in utilities. decline in baf?e. Alt-eagles are lively-ted by seasentlity.
sensitivity assumes deelines ef in betel. 395??: in retail. in utilities. 351?}. decline in baf?e. Avetages are lively-ted by seasenality.

 

City of New Orleans Budget Overview
Through July 2020
FY 2020 Expense Budget vs. Actual
FY20 Expense Budget

$725.9M

Expenses to Date

($334.0M)

Operating Budget Balance

$391.1M

Current FY2020 Expense Estimation
FY20 Expense Budget
Potential Department Savings
Potential Personnel Savings
Current FY20 Expense Estimation

$725.9M
($35M to $50M)
($21.5M)
$654.4M to $669.4M

FY2020 Estimated Shortage
Estimate Revenue Shortfall

($130M)

Estimated Expense Savings

$56.5M to $71.5M

Needed for FY20

($58.5M to $73.5M)

CURRENT EMERGENCY SCENARIO FOR FY2020 BUDGET
FY20 PreCOVID-19
Budget

FY20 COVID19 Budget
Estimate

FY 20
Estimated
Impact

% Change

Sales and Other Taxes

$264.3M

$153.5M

($110.8M)

42%

Property Taxes

$167.2M

$167.2M

-

-

Licenses and Permits

$77.0M

$72.3M

($4.7M)

6%

Intergovernmental

$21.5M

$20.7M

($859.4K)

4%

Service Charges

$98.6M

$92.9M

($5.7M)

6%

Fines and Forfeits

$39.2M

$26.4M

($12.8M)

33%

Miscellaneous

$35.8M

$33.7M

($2.1M)

6%

Other Financing Sources

$22.3M

$22.3M

-

-

$725.9M

$588.9M

($136.9M)

19%

TOTAL

10

 CARES Act Funding
$524M was made available to Parishes from the State of Louisiana’s $1.8B
CARES Act Allocation
▪ CARES funding allows for parishes to be reimbursed for non-budgeted costs incurred
on COVID-19 response (payroll and operations)
▪ Parish allocations are based on a weighted average. Disbursements for subsequent
tranches will be recalculated using updated COVID-19 cases and population data
▪ Allocations are issued to parishes in 4 tranches
TRANCHE

FORMULA FOR TOTAL PARISH ALLOCATION

EXPENSE
REIMBURSEMENT PERIODS

1

70% COVID-19 Cases & 30% Total Population

Mar 1 – Apr 30, 2020

June 1 – June 15, 2020

$43,405,295.00

2

70% COVID-19 Cases & 30% Total Population

May 1 – June 30, 2020

July 1 – July 15, 2020

$9,023,283.00

3

TBD

July 1 – Aug 30, 2020

Sept 1 – Sept 15, 2020

TBD

4

TBD

Sept 1 – Oct 31, 2020

Nov 1 – Nov 15, 2020

TBD

APPLICATION PERIODS

AVAILABLE FUNDING
FOR ORLEANS PARISH

▪ As of mid-July, 24 Parishes had not submitted any requests
11

 CARES Act Funding (Cont’d)
All entities located in a Parish apply for reimbursement from the same local
allocation
TRANCHE 1

TRANCHE 2-A

TOTAL REQUEST

TOTAL APPROVED

TOTAL PAYMENT

TOTAL REQUEST

TOTAL APPROVED

TOTAL PAYMENT

TOTAL
PAYMENTS

City of New Orleans

$41,507,261

$39,075,270

$38,298,008

$38,760,412

$38,760,412

$7,519,769

$45,817,778

$32,017,905

Orleans Parish Sheriff Office

$5,995,167

$3,909,240

$3,831,480

-

-

-

$3,831,480

$77,760

Orleans Parish Communications District

$1,079,461

$906,351

$888,323

$1,218,453

$1,218,453

$252,456

$1,140,779

$984,026

Criminal District Court

$776,693

$14,958

$14,660

$15,843

$15,843

$1,917

$16,578

$14,223

Port of New Orleans

$440,230

$373,087

$365,666

$782,659

$740,579

$147,310

$512,976

$600,690

French Market Corp

$7,303

$7,303

$7,158

$16,789

$16,231

$3,661

$10,818

$12,716

-

-

-

$989,545

$811,843

$158,587

$158,587

$653,256

$44,286,210

$43,405,295

$41,783,702

$41,563,362

$8,083,701

$51,488,995

$34,360,577

APPLICANT

Audubon Commission

TOTAL $49,806,115

TOTAL CARRY
FORWARD*

12

 EXPIRING MILLAGES
BACKGROUND

 

Expiring Millages Background
The City intends to ask voters for an “in lieu of” millage rededication of 5.82
mills during the December 5th, 2020 election.
▪ The rededication of these millages is
critical, as post COVID-19 property
taxes are the City’s most stable
source of recurring revenue.
▪ The rededication will give the City
the flexibility needed to ensure the
City can continue to spend these
funds as needs change in the future.

Millages Set to Expire on December 31st, 2021
▪ Street and Traffic Control Devices (1.77 mills)
▪ Public Library (2.58 mills)
▪ Neighborhood Housing Improvement Fund (0.91 mills)
▪ Economic Development Fund (0.00 mills)

▪ Capital Improvements and Infrastructure (0.56 mills)
If voters approve, the rededicated millages will take effect on January 1st, 2021.

14

 4 PROPOSED MILLAGE RATES,
RBIENUES, AND USES

Proposed Millage Rates, Revenues, & Uses
2019 AND 2020 MILLAGES

Street & Traffic Control Devices
Capital Improvements and Infrastructure

2021 PROPOSED MILLAGES

Infrastructure & Maintenance

$10.5M to $11M

2019
MILLAGE
RATE

2020
MILLAGE
RATE

3.72

2.33

2021
PROPOSED
MILLAGE
RATE

2019
IMPLIED
REVENUE

2020
ESTIMATED
REVENUE*

2021
ESTIMATED
REVENUE*

2.619

$13.5M to $14M

$9.5M to $10M

$10.5M to $11M

$10.5M to $11M

$4.0M to $4.5M

$10.5M to $11M

$10.5M to $11M

Public Library

Library and Early Childhood Education

3.14

2.58

0.987

$11.5M to $12M

Neighborhood Housing Improvement Fund (NHIF)

Housing

0.91

0.91

1.05

$3.0M to $3.5M

$3.5M to $4M

$4.5M to $5.0M

Economic Development Fund (EDF)

Economic Development

0.91

0.00

1.164

$3.0M to $3.5M

$0M

$4.5M to $5.0M

TOTAL
8.68
*Note that these revenue estimates do not account for new construction or impacts of the phase-in

5.82

5.82

$31M to $33M

$23.5M to $25.5M

$23.5M to $25.5M

16

 INFRASTRUCTURE & MAINTENANCE
Estimated at $10,500,000 in the first year
Proposition Language
In lieu of separate millages previously approved by voters in
the City of New Orleans ("City") in the amount of 1.900 mills
for street and traffic control device maintenance and 2.500
mills for the Capital Improvements and Infrastructure Trust
Fund (collectively, “Prior Taxes”), shall the City be authorized
to levy a special tax of 2.619 mills ("Tax") for twenty years,
January 1, 2021 - December 31, 2040 (estimated at
$10,500,000 in the first year) with the proceeds of the Tax
dedicated first to payment of debt service obligations secured
by any of the Prior Taxes and then solely to public
infrastructure in the City, to be used for the purposes of
repairing, improving, maintaining and operating (i) roads,
streets, and bridges, (ii) surface and subsurface drainage
systems and stormwater management facilities, and (iii)
public buildings and public safety facilities of the City,
including purchasing related equipment and vehicles for any
of the foregoing, provided that a portion of the monies
collected shall be remitted to certain state and statewide
retirement systems in the manner required by law?

What This Millage Will Provide
▪ Maintenance and repair of existing
roads, streets, bridges, drainage
systems, and facilities
▪ Purchase and maintenance of items
with a life span of less than 10
years, such as vehicles, computers,
and software

17

 HOUSING
Estimated at $4,250,000 in the first year
Proposition Language
In lieu of a separate millage previously approved by voters
in the City of New Orleans ("City") in the amount of 2.50
mills to fund the Housing and Economic Development
Trust Fund in the City (“Prior Tax”), shall the City be
authorized to levy for twenty years, January 1, 2021 December 31, 2040, special taxes of (a) 1.05 mills
(estimated at $4,250,000 in the first year) to be used
for the purpose of constructing, acquiring, improving,
maintaining and operating affordable housing facilities
and alleviating urban blight, and (b) 1.164 mills
(estimated at $4,600,000 in the first year) to be used to
support economic development activities in the City,
provided that a portion of the monies collected shall be
remitted to certain state and statewide retirement
systems in the manner required by law?

What This Millage Will Provide
▪ Rental Housing Development

▪ Homeownership Support
▪ Permanent Land Trusts
▪ Program Client Support

▪ Housing Related Plans/Studies
▪ HOME Match Requirement

18

 ECONOMIC DEVELOPMENT
Estimated at $4,600,000 in the first year
Proposition Language
In lieu of a separate millage previously approved by voters
in the City of New Orleans ("City") in the amount of 2.50
mills to fund the Housing and Economic Development
Trust Fund in the City (“Prior Tax”), shall the City be
authorized to levy for twenty years, January 1, 2021 December 31, 2040, special taxes of (a) 1.05 mills
(estimated at $4,250,000 in the first year) to be used for
the purpose of constructing, acquiring, improving,
maintaining and operating affordable housing facilities
and alleviating urban blight, and (b) 1.164 mills
(estimated at $4,600,000 in the first year) to be used to
support economic development activities in the City,
provided that a portion of the monies collected shall be
remitted to certain state and statewide retirement
systems in the manner required by law?

What This Millage Will Provide
▪ Reinvesting in the City’s own economic and
workforce development capacity (staffing
and programming)
- Generational Economic Development

▪ Investing in priority industries and projects
- Reimagining the partnership with NOLABA

▪ Workforce Development/Readiness

▪ Place-based Economic Development
- Commercial Corridor Revitalization Program

19

 LIBRARY & EARLY CHILDHOOD EDUCATION
Estimated at $4,000,000 in the first year
Proposition Language
In lieu of a separate millage previously approved by
voters in the City of New Orleans ("City") in the amount
of 4.000 mills for the support of public libraries in the
City (“Prior Tax”), shall the City be authorized to levy a
special tax of 0.987 mills ("Tax") for twenty years,
January 1, 2021 - December 31, 2040 (estimated at
$4,000,000 in the first year) with the proceeds of the
Tax to be used for the purposes of constructing,
improving, maintaining and operating public libraries
and early childhood education facilities and related
programs in the City, including the purchase of
equipment therefor, title to which shall remain in the
public, provided that a portion of the monies collected
shall be remitted to certain state and statewide
retirement systems in the manner required by law?

What This Millage Will Provide

• Support library operations,
programming, and initiatives
• $1.5M investment in Early
Childhood Education
• Funds will be directed to NOEEN to fund
additional PK seats

20

 a TAXPAYER IMPACT

Estimated Taxpayer Impact in 2021
The tax bill for residence with a 2021 Fair Market Value of $200,000 and a
homestead exemption is reduced by about $1.50 per month or $18 per year
Decrease in Annual Taxes Based On Fair Market Value*
Fair Market Value Of Home/Property

$100,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $750,000 $1,000,000

Residence With Homestead Exemption

-$3.58

-$17.88

-$25.03

-$32.17

-$39.33

-$46.48

-$53.63

-$60.78

-$96.52

-$132.28

Residence Without Homestead Exemption

-$14.30

-$28.60

-$35.75

-$42.90

-$50.05

-$57.20

-$64.35

-$71.50

-$107.25

-$143.00

Commercial Structures And Personal Property

-$21.45

-$42.90

-$53.63

-$64.35

-$75.08

-$85.80

-$96.52

-$107.25 -$160.88

-$214.50

Public Service Property

-$35.75

-$71.50

-$89.38

-$107.25 -$125.13 -$143.00 -$160.88 -$178.75 -$268.13

-$357.50

Decrease in Monthly Taxes Based On Fair Market Value*
Fair Market Value Of Home/Property

$100,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $750,000 $1,000,000

Residence With Homestead Exemption

-$0.30

-$1.49

-$2.09

-$2.68

-$3.28

-$3.87

-$4.47

-$5.06

-$8.04

-$11.02

Residence Without Homestead Exemption

-$1.19

-$2.38

-$2.98

-$3.57

-$4.17

-$4.77

-$5.36

-$5.96

-$8.94

-$11.92

Commercial Structures And Personal Property

-$1.79

-$3.57

-$4.47

-$5.36

-$6.26

-$7.15

-$8.04

-$8.94

-$13.41

-$17.88

Public Service Property

-$2.98

-$5.96

-$7.45

-$8.94

-$10.43

-$11.92

-$13.41

-$14.90

-$22.34

-$29.79

* Assumes no savings to the taxpayer from the phase-in; eligible taxpayers will pay less from 2021-2022

Assuming a reduction of the aggregate millage of 1.43 mills
City of New Orleans

22

 IMPACTS TO NEW ORLEANS
PUBLIC LIBRARY

Library Millages
Since 2016, on average, NOPL has underspent collected millage revenue by 11%.
HISTORICAL ACTUAL REVENUE AND EXPENDITURE DETAIL
YEAR

2016
2017
2018
2019
2020
AVERAGE

COLLECTED
MILLAGE REVENUE
$19,143,091
$21,190,082
$18,855,504
$20,050,158
$19,610,436
$19,769,854

ACTUAL
EXPENDITURES
$15,777,444
$16,611,206
$18,459,676
$19,408,210
$17,564,134

VARIANCE

-17.58%
-21.61%
-2.10%
-3.20%
-11.16%

▪ The approved 2020 Library Budget is $22,290,206.
- The library receives additional revenue from sources other than their 2 millages, such as special funds and revenue related to fines and fees.

▪ As of 2019, the library has $11.6M in reserve funding available.
▪ Voters have approved 2 millages for the New Orleans Public Library. The first was approved in 1987 and expires in 2021 and the
second was approved in 2016 and expires in 2040.
MILLAGE TYPE

2020
MILLAGE
RATE

2021
MILLAGE
RATE

MILLAGE
RATE
CHANGE

2020 ESTIMATED
MILLAGE REVENUE

2021 ESTIMATED
MILLAGE REVENUE

2021 ECE
ALLOCATION

2021 ESTIMATED
REVENUE
DEDICATED TO
LIBRARY

REVENUE CHANGE
AFTER ECE
ALLOCATION

PERCENT CHANGE

Public Library General (EXPIRING)

2.58

0.987

-1.593

$10.5M to $11M

$4.0M to $4.5M

-$1.5M

$2.5M to $3M

-$7.5M to -$8.5M

-37.5%

Public Library Supplemental

2.33

2.33

0

$9.5M to $10M

$9.5M to $10M

-

$9.5M to $10M

-

4.91

3.203

-1.593

$20M to $21M

$13.5M to $14.5M

-$1.5M

$12M to $13M

-$7.5M to -$8.5M

-37.5%

TOTAL

24

 Library Budget Analysis
Since 2016, on average, NOPL underspends their personal services budget by ~$1.5M
annually and their other operating budget by ~$2.7M annually.
PERSONAL SERVICES

OTHER OPERATING

YEAR

BUDGETED

ACTUALS

VARIANCE

APPROVED FTE’S

YEAR

BUDGETED

ACTUALS

VARIENCE

2016

$12,700,000

$11,237,618.57

($1,462,381.43)

220.60

2016

$7,641,504

$4,539,825.86

($3,101,678.14)

2017

$12,700,000

$11,617,029.03

($1,082,970.97)

228.88

2017

$5,590,000

$4,994,176.64

($595,823.36)

2018

$14,000,000

$12,391,149.08

($1,608,850.92)

235.80

2018

$8,439,060

$6,068,526.95

($2,370,533.05)

2019

$14,250,000

$12,735,479.71

($1,514,520.29)

236.80

2019

$9,196,060

$4,533,504.52

($4,662,555.48)

2020

$14,163,146

-

-

223.39

2020

$8,107,060

-

-

▪ On average, personnel accounts for approximately
75% of NOPL’s annual spending

▪ On average, NOPL spends $5M annually on other
operating expenses.

▪ From 2016 to 2019:

▪ Top 3 Expense Categories:

- Actual personnel spend increased by ~$3M (Note:
Library personnel received a 10% pay raise in 2019)
- Budgeted FTEs increased by 16.2

▪ In 2020, the library has 223 total employees

- Books and Pamphlets ($1.6M in 2019)
- Dues and Subscriptions ($865K in 2019)
- Security Services (527K in 2019)

▪ Approximately $500K of NOPL’s 2019 expense are
related to facility maintenance, rents/leases,
janitorial services and computers/technology.
25

 Budgeting for the Future - NOPL
Over the last 5 years, NOPL has consistently underspent their budget in addition
to millage revenues exceeding estimates.
▪ Based on prior year actual spending, the 2021 budget for NOPL should be adjusted to reflect their actual
costs of operating:
PERSONAL SERVICES OTHER OPERATING TOTAL BUDGET
$12.5M
$5M
$17.5M

▪ Review of the NOPL budget has shown that NOPL’s existing fund balance of approximately $11.6M can
sufficiently support any funding gaps from decreased millage revenue for at least 2 years
- NOPL will keep the industry standard of 10% in reserve funding available
- No library closures in the near future
- Libraries will need to re-imagine services and operations based on our new normal (COVID-19)

▪ There remains the possibility of asking voters to approve an additional millage dedicated for the library in
the coming years, if required.
- The City will work with the Library to identify new opportunities for revenue generation as well as to identify further cost
efficiencies/savings

▪ Collaboration with NOPL and the Office of Business and External Services
- Launching of the “Front Door” Pilot Program at 3 NOPL sites
26

 TIMELINE AND ADDITIONAL
CONSIDERATIONS

Timeline
In order to ensure this rededication is on the December 5th ballot, the following
must be completed:
ITEM

DATE

STATUS

File the Motion / Notice of Intent (with the Clerk of Council by noon)

7/13/20

COMPLETED

Council votes on Motion / Notice of Intent

7/16/20

COMPLETED

File the Resolution with ballot language (with the Clerk of Council by noon)

8/17/20

IN PROGRESS

State Bond Commission (SBC) Application Deadline (File SBC017 forms with the draft Resolutions)

8/18/20

IN PROGRESS

Council votes on Resolution with ballot language (Council adopts Resolutions)

8/20/20

TO BE COMPLETED

Provide Certified Resolution to State Bond Commission (Clerk of Council to immediately certify copies of each Resolution after

8/20/20

TO BE COMPLETED

9/17/20

TO BE COMPLETED

10/12/20

TO BE COMPLETED

the Council meeting and emails them to SBC)

State Bond Commission Approval (SBC considers applications and if approved, forwards the approval recommendation to the SOS –
if SBC approves, SOS customarily follows suit)

Application Due to Secretary of State (SOS has the final say on putting it on the ballot)

28

 Additional Considerations
▪ In 2021, tax payers can expect their overall tax bill to decrease by 1.43 mills. This only
includes millages within the City’s control as well as the BoL Bond Interest and
Redemption Millage
- In May 2019, the voters passed a rededication of the Parks millage effective January 1st,
2021. Due to the quadrennial re-assessment, the 2020 assessed rate of the Parks millage
decreased to 4.74 mills. This rate will increase back to 6.31 total mills in 2021, as a result of
the rededication.
- In October of 2020, the Board of Liquidation (BoL) anticipates approving a 3.0 mill reduction to
its Bond Interest and Redemption Millage (from 22.5 mills to 19.5 mills) in October 2020.
▪ This reduction is a result of the Administration’s increased use of bond proceeds, improved bond ratings, as
well as the improvement to the City’s overall financial position.

▪ The December election date falls after the dates by which the Mayor is required to
submit the Operating Budget to the Council (November 1, per Section 6-102) and the
Council is required to adopt the Operating Budget (December 1, per Section 3-115).
- We are working closely with stakeholders to thoughtfully develop a plan that will allow for this
to be voted on in December.
- Note that in 2016, the last time the City held a December tax election, the Council did not levy
the protection millages that were approved on December 10, 2016 until January 26, 2017. It
then sent a supplemental tax bill just for those taxes.
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 Questions?