The council unanimously approved a millage rate of 7.25 mills at its meeting Monday, just lower than the rollback rate of 7.26 mills and down from the previous rate of 7.889 mills.
The council’s decision means a tax decrease in the city, since the millage rate was set below the rollback number, Chief Financial Officer Robert Porche said.
“It’s technically a tax decrease,” Porche said. “As the digest moved through the appeals process, the rollback rate was actually higher than what we budgeted.”
Earlier in August, when the property tax digest was projected to increase by more than 18 percent, the city’s plan to set a millage rate of 7.25 mills would have resulted in a tax increase of 1.31 percent.
However, Porche said the digest is now expected to increase 16.33 percent, resulting in lowered taxes for city homeowners. He added there are still about 40 appeals left, which could result in some additional decrease in the digest.
Porche said the lowered digest will result in $100,000 less in the general fund, adding the city could use $100,000 from the contingency fund which now has about $300,000 in it to make up the difference.
Nobody spoke at any of the public hearings had about the proposed millage rate.
Councilman Chris Casdia made the motion to approve the recommended millage rate of 7.25 mills, which was seconded by Councilman Bob Mueller.
In June, the council members unanimously approved a $34 million budget for fiscal 2015, based on the proposed rate of 7.25 mills.
The next meeting of the mayor and city council is set for Sept. 8, at 7 p.m., at The Chambers at City Center.
Also at the meeting Monday:
• The mayor proclaimed Sept. 1 through 5 National Payroll Week and proclaimed Sept. 11 the National Day of Service and Remembrance;
• The council awarded a $46,195 bid to Chatfield Contracting Inc. for the paving of the Dupree Park Fitness Trail;
• The council approved a change to the taxation ordinance, causing occupational taxes to be calculated using gross receipts instead of the number of employees;
• The council agreed to proceed with the bidding process for the amphitheater project. The city will get bids on the project as a whole, and the project in two steps; and
• The council agreed to hold a special called work session in the near future for the sole purpose of discussing the Towne Lake-Arnold Mill widening project.