Greenfield's road-building budget moves ahead

Greenfield - Greenfield residents will get to have their say on the proposed 2012 Greenfield city budget that calls for a 2.15 percent property tax hike, mainly to finance an aggressive road program, at a budget hearing Tuesday.

The proposed budget has a property tax rate of $7.21 per $1,000 of assessed value, or 17 cents more than 2011. That means the owner of a home assessed at $200,000 would pay about $34 more than this year.

The total proposed 2012 budget is $48,870,832, up 21 percent from this year mainly because of the road program. The operating budget would be $23,715,134, or 2.78 percent higher than this year's $23,072,958 package.

Although a new state law keeps the levy increases at a zero unless there is growth in the community, cities can raise their levies to cover debt. City officials propose borrowing nearly $11 million for an aggressive road program to take advantage of low interest rates and construction costs. Because that borrowing would normally be done over a longer period of time, the city would not borrow again until 2015.

The proposed road plan would add about $82 to the tax bill of an owner of a home assessed at $200,000, the city estimates.

But the city would save an estimated $2 million over the 15-year life of the proposed loan.

Under the proposed budget, there would be a pay freeze next year. And city workers would pay 5.9 percent toward pensions and 12.6 percent of health insurance premiums.

There are no furlough days in the proposed 2012 budget, as opposed to five this year. The last one will be FridayNov. 11 when City Hall will be closed. Furloughs are forced days off without pay.

The proposed budget contains no layoffs but there are some reorganizations taking advantage of attrition.

It would use $320,000 of fund balance, which is substantially less than in previous budgets. The city tries to keep the fund balance at 25 percent of the operating budget and the proposed 2012 budget maintains that budgeting at about 25.5 percent.

NEXT STEP

WHAT: public hearing on proposed 2012 Greenfield city budget

WHEN: 7:15 p.m. Nov. 15

WHERE: Greenfield City Hall, 7325 W. Forest Home Ave.