City officials consider budget changes

Fort Scott City commissioners in the next few months will have to decide whether to keep the mill levy the same, decrease or increase it as the governing body reviews budgetary numbers before approving the budget in August.

Commissioners got their first look at preliminary budget numbers on Wednesday at a work session. Although no decisions were made, commissioners conveyed that the mill should either stay the same or drop slightly. The mill shouldn't be increased.

One reason is because of Fort Scott's assessed valuation. The Bourbon County Clerk's Office projected the city's valuation of $48.5 million. It's an increase of over $4.7 million from this year's valuation.

If commissioners vote not to increase the mill, the city would get an additional $200,000 because of the larger assessed valuation, finance director Susan Brown said. If the commission decides to decides on an increase, the city will generate an even bigger amount.

The city receives its property taxes through a formula based on a property's assessed valuation.

One mill is equal to $1 for every $1,000 in assessed valuation. To figure out how much a homeowner will have to pay in property taxes, take the appraised value of the residence divide that number by 1,000 and multiply it by the millage rate to get the city's property tax rate.

Commissioners in nearly every town try to keep property taxes either the same or lower it to keep homeowners content.

Last year marked the first time in four years the commission increased the mill, thus increasing the property tax rate. The mill increased to its current level of 43.183 mills.

Brown made a list of several needs and changes for the 2008 budget.

Right now, the budget has 60 percent of the general fund going toward salaries and benefits. It includes a 3-percent annual increase for employees and a 1-percent end-of-year bonus that could be bumped up to 1.5 or 2 percent, City Manager Richard Nienstedt said. The budget includes $91,500 for salaries and benefits for two full-time codes employees. It has listed $100,000 for staffing for the new east side fire station.