Council adopts final budget of $522.5M

Proposes lower primary tax rate, hike in levy due to new construction

The Yuma City Council on Wednesday adopted the Fiscal Year 2021/22 Annual Budget of $522.5 million, which includes the Capital Improvement Program budget of $158.3 million, an operating expenditure budget of $343.7 million; interfund transfers of $20.2 million; and wastewater interfund borrowing of $193,068.

The council also held a combined public hearing to invite community members to comment on the budget, proposed primary tax levy, or the amount that will be collected, Downtown Mall Maintenance District and the expenditures and levies of the city’s five municipal improvement districts.

No citizens asked to speak on any of the issues. However, during the call to the public at the end of the meeting, Gene Dalbey commended the council for the multiple projects with bicycle paths included in the CIP. He also noted the many other projects will impact bicyclists.

Following the hearing, the council adopted the budget resolution with a 3% increase in solid waste fees for residential collection and the environmental fee.

The annual budget is based in part on an estimated primary property tax levy based on the assessed valuation of property within the city limits as provided in February by the Yuma County Assessor.

There has been no secondary property tax levy since 1992.

The council introduced an ordinance that would set the primary tax rate for 2021/22 as $2.2681, less than the current primary property

tax rate of $2.3185. This means the cost would be $226.81 for a $100,000 home. Individual amounts depend on homes’ assessed values.

While the primary tax rate is less, the primary property tax levy will increase due to new construction. The city anticipates that it will collect $14.8 million, which is $592,773 more than the current year.

Adoption of the tax rate and levy ordinance is scheduled to take place at the July 21 meeting, which begins at 5:30 p.m., in the City Hall Council Chambers, 1 City Plaza.

The tax rate for the Main Street Mall and Off Street Parking Maintenance District No. 1 is $3.9800 on each $100 of assessed valuation, which is higher than the current tax rate of $3.4152. The tax is anticipated to raise about $139,257 in fiscal year 2022.

The district, established in 1969, had a tax levy of $117,500 with a property tax rate of $3.4152 for the current fiscal year.

The new tax rate means that for a Class 1 business that has an 18% assessment ratio, the annual property tax would be an increment of $101.66 per $100,000 of valuation. In addition to the levy, the city contributes about 50% of the Downtown Mall maintenance costs.

The city will assess five municipal improvement districts for the first time. With agreement from developers, several municipal improvement districts have been established to pay for the maintenance of landscape improvements through the collection of taxes on properties within the districts.

The Driftwood Ranch proposed property tax rate is $1.1209, which is expected to raise and spend $14,000 for maintenance. The cost would be $112.09 per $100,000 of property value.

The Livingston Ranch No. 2 proposed property tax rate is $1.1107, which would raise $6,600 in revenues. The expenditures are estimated to be $18,656, with $12,056 of the cost paid by city road funds. The cost would be $111.07 per $100,000 of property value.

The Saguaro No. 3 and 4 proposed property tax rate is $0.8050, which is expected to raise and spend $14,000 for maintenance. The cost would be $80.50 per $100,000 of property value.

The Park West No 4 and 5 proposed property tax rate is $1.1056, which is expected to raise and spend $13,400 for maintenance. The cost would be $110.56 per $100,000 of property value.

The Desert Sky No. 1 proposed property tax rate is $1.1033, which is expected to raise and spend $21,800 for maintenance. The cost would be $110.33 per $100,000 of property value.

The FY2022 budget can be found on the front page of the city’s website www. yumaaz.gov, in the City Clerk’s office, and at the Yuma County Public Library, 2951 S. 21st St.