Finance Committee - 3/21/2018 Page 14
money we would put it in there. But we have to make sure that we provide the services that the folks have
come to expect and the valuation was part of that thinking. So | just wanted to share that with you, it’s done
well, we need to continue monitoring it very deliberately, calling on the folks that help us run the City and then
you all to approve on a timely basis the appropriations. There are other ways of getting more money. What is
proposed is a contingency account. From time to time, at least historically, when we had money under the cap
we could come in with a supplemental appropriation to propose to you folks that could either take unanticipated
revenue or add a fund balance.
The other thing we will go over in the budget process is we are extremely proud of the fund balance we have,
it's more than the required amount both on the State level and the City level. We are recognized by Fitch and
Standard & Poor's with a Triple A rating, they are very cautious, those rating agency because they are
basically the ones looking out for the bond holders. We are well-positioned but it’s not to say we have an
excess amount of money. The bonding of the fire trucks and the refuse trucks, that was in the plan from Day 1
in Fiscal 2010. There was no way we could take a $1.2 million dollar ladder every several years or
$650,000.00 engine and all those refuse trucks whether they were diesel, fired or CNG fired. Just a lot to talk
about but | think we wanted to share with you folks, after the meeting we had a few weeks ago on the re-eval
that CERF is a good plan going forward for the vehicles. Thank you Mayor.
Mayor Donchess
Other discussion or questions?
Alderman Laws
I’m not sure if this appropriate forum, but while I’ve got you sitting next to me, I’ve been getting a ton of people
who are asking me, they are concerned about what’s happening here with the revaluation. Has this happened
in other municipalities that you are aware of where the property values have changed like this dramatically over
a short period of time and if so, have they done something to alleviate the tax burden on the people who would
normally feel it the most? There are homeowners in certain brackets who might be facing their taxes going
up?
Mayor Donchess
The simple answer is yes. | mean Portsmouth has been affected as an example far worse. | mean their
property values have gone up, in fact they have gone up so fast they did a State ordered revaluation in 2015
and then they voluntarily did another one is 2017 because the values had gone up so much in those two years.
It did affect homeowners. But! want to stress that this is not something we want to do. It would be great if we
could just leave things the way they are, because we don’t want to see a shift. We asked the DRA if we could
delay this for a couple years and they said “no”. There is a State law and Constitutional provision which say
that we have to do this every five years. They made it, I’d say, more than clear that if we didn’t proceed they
would immediately sue us. So we didn’t see a real defense, they have got really clear mandates in the
Constitution and in State Law, statutes that this is mandatory. So rather than try to fight a losing battle, litigate
a case we are going to lose, then there is a downside to losing that because then the DRA can then take over
the thing and bill you and do whatever they want with the values. We think we will have more influence on
trying to steer it in a direction that’s a little more favorable if we are in charge rather than the DRA.
Alderman Laws
Again I’ve never dealt with anything like this before. Is there something that we can do, can we adjust the tax
rates to make it so the burden falls equally on residential?
Mayor Donchess
The underlying issue is that State Law requires, in addition to revaluation, that all properties be valued every
five years at fair market value and requires that all properties be taxed at the same rate. Now in
