COM 0717.043 2004-2006 - Laserfiche WebLink

Home

Honorable Stacy K. Higa Page 5 May 5, 2006 REVENUE CHANGES General Fund Real Property Taxes. Real property tax revenues increased by $33,108,000 from the current year to reflect the certified net taxable real property values and new tax rates being proposed. Public Service Company Tax. The estimated public service company tax has increased by $1,000,000 to reflect our current rate of collection. Transient Accommodations Tax (TAT). The estimated TAT increased by $479,000 based on the most recent Council on Revenues projections. Grants-in-aid. Adjustments made to the Assistance to Firelighters grant (4301,000), the Juvenile Accountability grant (-$100,000), the Wireless E-911 grant ($200,000), the Marijuana Eradication grant ($70,000), and other miscellaneous grants ($56,340). Highway Fund. The Highway Fund projection increased by $2,924,245 Sewer Fund, The Sewer Fund projection decreased by $791,850. Solid Waste Fund. The Solid Waste Fund projection increased by $537,527 REAL PROPERTY TAX RATES The net valuation of real property on the Big Island increased to $22,829,515,000 from $16,539,238,100 (current year). This 38.03% increase can certainly translate to significant property tax revenues for the County and provide almost unlimited opportunities to address our goals. But we also recognize that services and facilities that are funded today must be maintained in the toughest of economic conditions. Because of this, although the budget being submitted proposes significant expenditure increases to improve County services and facilities, it also sets funds aside for future needs, and proposes property tax rate reductions to keep growth at a more sustainable level. We are proposing new rates based on the following guiding principles: • Rates should be uniform island -wide. • Rate reductions tend to be permanent so decisions should consider long-term effects. Rates should not be established solely to counteract short-term valuation increases. • Rates should relate to who actually pays the tax, what benefits the class already receives, and what reductions are needed to appropriately help taxpayers in the class.