Johnston Poised To Have Fourth Lowest Tax Rate In Metro

Monday night the Johnston City Council will vote to approve its 2014/2015 budget.  This budget will keep Johnston fiscally sound, and in the lower half of metro tax rates.  Depending upon what other metro cities decide for their tax rates, Johnston is poised to have the fourth lowest tax rate in the metro.  Although the tax levy may fluctuate each year, the $11.34 tax levy that was approved tonight is only $0.04 higher than the 2006/2007 tax levy.

The following is how we arrived at $11.34.  The proposed 2014/2015 debt service levy is $3.77, an increase of $0.19.  This rate includes $0.41 approved by voters to build the new Public Safety Building on Merle Hay Road.  Our general fund levy remains the same at $7.57, bringing the total tax levy (3.77 + 7.57) to $11.34.

The city portion of the property taxes on a Johnston home with an assessed value of $200,000 will increase $56.41/year from $1,177.82 to $1,234.22 assuming the taxable valuation remains the same. The rollback on commercial property is now 95% instead 100%.  Therefore, the taxes on a Johnston business with an assessed value of $200,000 will decrease from $2,230.01 to $2,155.34, or $74.67 less per year. 

Currently, city operations (everything from police officers to street improvements) account for 28% of the property taxes Johnston residents pay.  Schools account for 43%, the county receives 17% and hospitals account for 8%.  A combination of Ag extension, assessor, regional transit, the state and DMACC make up the rest. 

The City's general fund will maintain a 26% reserve.  This reserve is necessary to fund the operations of the City for the first three months of the fiscal year (July - September) as property tax revenues are not received until October.

Other Financial Items Worth Mentioning:

DART has announced a property tax rate increase of $0.09/$1,000.  They report the additional revenue will be used for more services as part of the DART forward 2035 plan, health care coverage as mandated by the Affordable Care Act, reduction of federal funds for operating expenses and staffing and salary increases. 

In July 2012, the full cost of the Curb-It recycling program was shifted to residents' monthly utility bill. The city has not received information on the 2014/2015 rate for the Curb-It recycling program.  Metro Waste Authority has indicated they will provide the rate increase by mid-to-late May. 

Currently, garbage rates that Johnston residents pay to the city are $7.69/month for a 48 gallon container, and $8.01/month for a 96 gallon container.  City staff anticipated a 3% increase in the budget this year.  Metro Waste Authority will provide the actual rate adjustment to the city in April.

In January, the Johnston City Council voted to approve an increase in the city's Stormwater Utility rate.  It is the first increase since the beginning of the Utility.  The Stormwater Utility ordinance requires that the city review the financial health of the Utility every year.  This ensures that all high priority stormwater projects are being addressed in a timely manner and will determine if any adjustments in the rate are needed. 

The average Johnston homeowner will see an increase of $6-24 per year because of this fee.  The average Johnston business will see an increase of up to $240 per year.  This increase will take effect on July 1.

As construction season ramps up around Johnston, you will see your Stormwater Utility Fee at work.  Ten projects are planned that will help the City absorb as much rainfall on the land as possible, significantly reduce erosion and flash flooding, and improve the quality of water in our community.  You can learn more about those projects and how your tax dollars are working for you, at www.cityofjohnston.com/projects.