PROSSER -- The Prosser City Council will consider tonight raising the city's property tax levy 1 percent.
If approved, the city's property tax levy will fall from $3.33 per $1,000 of assessed property value, to $3.25 per $1,000 of assessed value. Prosser's property tax levy includes an excess levy, which pays off a bond used to build a fire station.
The 1 percent increase would generate about $9,000 for the city. It would bring the total property tax levy revenue to $1.17 million.
If the council approves the 1 percent propoerty tax levy increase, the actual tax levy will drop because of a significant jump in Prosser's assessed valuation, said Cathleen Koch, city finance director. The city's assessed valuation jumped from $365 million this year to $410 million estimated for 2010.
"The county does all the assessments ... and I only talked to them about new construction," Koch said. "We had
$39 million in new construction, which is off the chart for us."
The city's higher valuation, Koch said, allowed for the reduction in the property tax levy.
"It spreads out the cost among everybody," she said.
Also tonight, the council will hold a public hearing on the city's 2010 budget, which should be approved in early December. The budget, as it now stands, calls for about $4.17 million in general fund revenue and about $4.57 million in general fund expenditures, about $400,000 of which is going to the city's reserve fund.
Prosser's 2010 proposed budget is similar to its 2009 budget and calls for a 2 percent sewer rate increase and no water rate increase.
The city is considering changes to its garbage service as well, which includes discussion about adding curbside recycling, said City Administrator Charlie Bush.
The 2010 budget also calls for trimming the city staff by one position next year.
The Prosser City Council meeting is at 7 p.m. tonight at city hall, 601 Seventh St.
* Drew Foster: 509-585-7207; dfoster@tricityherald.com
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