By Joey Chenoweth | Coolidge Examiner
The evident accumulated by the City of Coolidge’s finance department in favor of raising the city’s property tax by 2 percent appears to be having its desired effect on city council after it was presented before their May 28 meeting.
Every year, council decides whether to raise the property tax, lower it or keep it the same. Under state law, they can only raise the tax by 2 percent every year. Last year, council unanimously decided to keep the tax rate the same despite the finance department’s recommendations. This increase would increase the rate from 1.5056 percent to 1.8584 percent.
This year, the city departments’ budget proposals have created a $275,000 deficit from revenues. Under state law, cities must balance their budgets. According to Finance Director Lisa Pannella, this would in all likelihood mean cutting positions within the city. However, if council agrees to raise the tax by 2 percent, Pannella believe this would all by offset the deficit.
For projecting the financial effects on property owners, numbers are based on a $100,000 home, which is more valuable than most of the homes in Coolidge. A person who owns that $100,000 home would pay $19.30 more per year than they currently do. Pannella anticipates property owners will have to pay the county less this year, so their overall bill might not be affected. This does not include the 34-percent increase that Central Arizona College is proposing.
