City Council member Richard Meginnis made a last appeal Monday to his colleagues to commit to not taking full advantage of an expected property tax windfall.
Had the council approved the non-binding resolution introduced by Meginnis, the council would have officially expressed its intention to ask for no more than $92.4 million in property tax revenue to fund their 2023-24 budget.
The council didn’t go for it, voting against the resolution on a 5-2 vote. Councilwoman Tammy Ward voted with Meginnis to approve it.
Several council members acknowledged the city — like other governmental subdivisions — will likely have access to substantially more property tax revenue than they planned for because of a spike in property valuations, but said those decisions should be made as part of the regular budget process.
“I just think it’s a little early in the process to say ‘let’s lock this number in,’” said Councilman Bennie Shobe.
People are also reading…
Meginnis said he’d like to see the resolution pass even though it’s nonbinding, because it signals the council’s intent not to take full advantage of any windfall.
The Lancaster County Assessor’s office has said property valuations have increased 10%-30% this year. The city’s budget is based on a 6% increase.
Cities and other taxing entities, such as Lincoln Public Schools and Lancaster County, set a tax levy to collect the property taxes needed to fund their budgets.
They estimate how much property valuations will increase and propose a tax rate based on that estimate to collect what they need.
Meginnis, who did not run for reelection and was at his last meeting Monday, has long advocated that the city — or other taxing entities — take only the amount needed to fund the budget. If property valuations come in higher, he maintains, the city should give property owners relief by lowering the levy.
“I think it still comes down to affordability,” he said. “It’s the people living paycheck to paycheck that are going to have to pay more and it’s going to be harder for them to make these payments.”
Last week, about a half dozen people told the council why it’s important for them to stick to the budget they approved last year.
Among those reasons was how it affects landlords, who will have to increase rents to cover the additional property taxes — something they said is already happening in anticipation of rising property taxes.
“I think the citizens need the money as much or probably even more so than the city of Lincoln,” Meginnis said.
Top Journal Star photos for May 2023
Arwen Wiechman, third grade, spins around while learning ballet during the Everett Community Learning Center after-school program on Monday. Dancers from the American Ballet Theatre led the students in dance exercises in advance of the company’s performances on Tuesday and Wednesday of “Giselle” at the Lied Center for Performing Arts.
Lincoln City Council candidate Tom Duden (right) embraces his wife Ronda Duden (center), along with his brother-in-law Rob Treptow at a Republican election night watch party Tuesday at Rosie’s Downtown.
Adam Morefeld is hugged by Mayor Leirion Gaylor Baird as she enters an election night party for Democrats on Tuesday, May 2, 2023, at the DelRay Ballroom in Lincoln.
Cars drive across a bridge along North 27th street, as a low water level measuring around 2.0 ft reveals the creek bed underneath, one year before on the same date the water level was measuring nearly 4 ft, on Wednesday, May 3, 2023 in Lincoln. Drought conditions have gotten so bad in Lancaster County that the U.S. Department of Agriculture has declared it a disaster area. This most recent announcement expands drought disaster designations to more than two-thirds of the state’s counties. Last month, the department designated 55 counties as primary disaster areas.
An excavator works to clear debris from the area where a section of the Gold’s Building once stood as redevelopment of the site continues on Tuesday, May 2, 2023, along 11th and N streets in Lincoln.
Contact the writer at mreist@journalstar.com or 402-473-7226. On Twitter at @LJSReist.
