Lincoln City Council members are offering another round of changes to the proposed city budget, including several ideas to reduce the city's property tax rate.
Both Cyndi Lamm and Jon Camp have proposals that would shave a little from the city’s current tax rate of 31.648 cents per $100 of assessed valuation.
Camp would use any increase in keno revenue to reduce property taxes, which could mean a tax rate drop of half a cent to more than a penny.Ìý
But the idea will likely draw opposition from library and parks and recreation supporters.Ìý
Keno revenues have increased from about $1.1 million a year in 2015 to more than $2.6 million this year. A penny of the tax rate brings in about $2.1 million in revenue each year.
The Lincoln Independent Business Association offered the idea of using additional keno revenue for property tax relief at last week's public hearing on the budget.Ìý
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Keno revenues currently are split among parks and recreation maintenance and repair programs, libraries, and grants to social service agencies. Camp's plan would freeze the amount of keno funds going to those programs.
Lamm is suggesting the city property tax rate be based on the certified total property valuation rather than an estimate, as is the city's tradition.
That change would likely produce a very small reduction in the city's property tax rate, generally saving the owner of an average home less than $3 a year.Ìý
The tax rate established each year is usually slightly higher than required to cover the budget, and that excess revenue directed into the city's fund balances, making more revenue available in the following year.
The difference between the estimated total valuation and the certified valuation has ranged from $12 million to $221 million over the past four years, but the difference has generally been less than $100 million.
A $100 million difference between estimated and certified total valuation would reduce the city tax rate by about .0015 cent.
That would lower the annual property taxes paid on the average Lincoln home, valued at $182,400, byÌý$3 a year.ÌýÌý
But Lamm likened her plan to a car accident, where you wrecked your car, got a $1,600 estimate for repairs and contracted with a car repair shop for that amount. Then your insurance company sends $2,000 to cover the damages.Ìý
"The body shop should not be able to come back to you for more money just because you got more. Your money remains your money," Lamm said.Ìý
Lamm is also recommending that delinquent property tax revenue collected above $2.8 million a year, which is already budgeted, be transferred to the street improvement fund.
Based on previous years, that could be as much as $1 million to $2 million a year, said Lamm, one of three Republicans on the council.Ìý
Councilwoman Jane Raybould, one of four Democrats, is proposing adding about $100,000 for new bus shelters and benches.
Under Mayor Chris Beutler's proposal submitted this summer, the city’s tax-funded budget would rise by about 6 percent to $205 million for the first year of the biennium and another 3.5 percent to $212 million in fiscal year 2019-20.
Camp also is proposing a number of changes to the two-year budget, including remounting five ambulances on new chassis rather than buying new ambulances, eliminating the second city brine plant, and eliminating $300,000 in new furniture.
He is also proposingÌýusing the $4.9 million in cash reserve now earmarked for police and fire vehicles and a parks and recreation challenge grant to pay into the police/fire pension fund, an idea that failed to get council approval in mid-July.
The council will discuss the proposals at a noon meeting Monday and vote on them at a 3 p.m. meeting Wednesday. The council will adopt a final budget at its Aug. 20 meeting.