Union aldermen unanimously agreed to a slight modification of the city’s tax levy.
At a special meeting, board members set the 2018 tax rate. The new number went up slightly.
The 2017 rate was 72.28 cents per each $100 of assessed valuation. This year, the rate was set at 72.81 cents per each $100 of assessed valuation.
No one addressed the aldermen during the tax rate hearing.
The tax rates are based on the latest assessed valuation figures provided by the county. Tax rates are set annually for the city’s general fund and the park fund.
The 2018 rate is broken down with 58.68 cents going to the general fund and the remaining 14.03 cents per $100 of assessed valuation going to the park fund.
Last year the breakdown was 58.25 cents for the general fund and 14.03 for the park fund.
The rate is set to generate revenues for the budget year beginning July 1. Each rate is determined by dividing the amount of revenue required by the current assessed valuation. The result is multiplied by 100 so the tax rate is expressed for $100 of assessed valuation.
Union estimates real estate taxes will generate $148,656,722. Personal property taxes are expected to generate $39,638,705.
The total number of taxes generated is estimated at $188,295,427 — up from the 182,660,308 on the 2017 assessed valuation.
The general fund is expected to generate an increase of $31,767.26 and $7,649.48 in the park fund from new construction and improvements.
In addition to setting the new tax rate, the aldermen also reviewed the city’s finances.
Finance Director Heather Keith presented a financial report to aldermen at the special meeting. Keith said the report is required by law.
The reports are presented twice a year.
Since Jan. 1, the city has received general fund revenues of $5,015,078.49. General fund expenses this year have totaled $5,940,436.34.
For revenue, the city has only received $242,372.84 from taxes. Taxes are usually paid out at the end of the year.
In the approved 2018-19 budget, the city estimated close to $5.7 million in revenue coming from taxes.
The bulk of the revenue collected so far comes from intergovernmental funds ($1,094,572.86) and miscellaneous sources ($2,233,327.59).
On the expense side of the ledger, the largest expense so far this year has been the $2,102,651.64 spent for the street department.
Other large expenses this year have been incidentals ($2,019,893,39), police ($844,706.51) and trash collection ($447,211.90).
The park fund has generated revenue of $1,026,677.17 this year. A total of $798,943.32 has been spent out of that fund.
In all city funds, a total of $8,610,690.38 of revenue has been collected against expenses of $9,500,700.55.
Despite the gap between revenue and expenses, the city still has a lot of money in cash assets.
The report states the city has a total of $13,272,222.78 in assets as of June 30 this year. That number includes $9,271,063.60 in a checking account with the United Bank of Union.