I just read in the West Valley Journal that the City saved several millions of dollars by cutting costs in different departments. This is great. Now for the hard part. Did I say hard part? I meant the fun part.
We all know that the initial cutting of expenses is the easiest, so we need incentive to find ways to save money after the initial round.
I propose we offer an incentive such as this. For each department of the City, whatever you can cut from your departments budget and save, without lessening services or having layoffs, we'll divide 25% of the saved money equally amongst all employees in said department as a year end bonus.
We can use the other 75% to do any number of wise things. Such as paying down the City's bond debts, building up a rainy day fund, applying towards next years budget and lowering the West Valley City portion of property taxes, hiring more law enforcement and fire fighters, etc.
The only thing we wouldn't do with the money is spend it on new programs.
Showing posts with label Belt Tightening. Show all posts
Showing posts with label Belt Tightening. Show all posts
01 September 2009
04 August 2009
Property Tax 101
We received our property tax assessment, have you? Did yours increase even though your property value decreased? Do you understand how this happens?
O.K., here's a course in Property Tax 101.
Let’s say a property is worth $200,000, and property tax is assessed at 1%, so property taxes on this property are $2,000.
Property values drop and it's now worth$180,000; so we would think our new taxes should now be $1,800, yes? Then how come it's assessed at $1,980, a drop of only $20? And we’re also seeing an increase in the school district, etc., so the new taxes are now assessed at $2,120 for an increase. An increase with lower property values.
It's because the government is used to getting its $2000 and in order to continue getting it they play a numbers game. If taxes were assessed at 1% and property values drop, they just adjust the rate, or the 1% to 1.1% for a new property tax of $1,980 and get the same amount as before. It's all in the rates, a numbers game.
You remember the older kid who was always changing the rules in Monopoly so they could win? Same thing here. Let’s end this game so we can lower our taxes. If we must tighten our belt; then why not the City as well?
With your support and my desire to tighten the City's belt, we'll work wonders.
O.K., here's a course in Property Tax 101.
Let’s say a property is worth $200,000, and property tax is assessed at 1%, so property taxes on this property are $2,000.
Property values drop and it's now worth$180,000; so we would think our new taxes should now be $1,800, yes? Then how come it's assessed at $1,980, a drop of only $20? And we’re also seeing an increase in the school district, etc., so the new taxes are now assessed at $2,120 for an increase. An increase with lower property values.
It's because the government is used to getting its $2000 and in order to continue getting it they play a numbers game. If taxes were assessed at 1% and property values drop, they just adjust the rate, or the 1% to 1.1% for a new property tax of $1,980 and get the same amount as before. It's all in the rates, a numbers game.
You remember the older kid who was always changing the rules in Monopoly so they could win? Same thing here. Let’s end this game so we can lower our taxes. If we must tighten our belt; then why not the City as well?
With your support and my desire to tighten the City's belt, we'll work wonders.
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