The 2021 fiscal year budget for the City of Jefferson was recently approved by the City Council.

The next fiscal year, which starts on July 1st, will have a slight increase to the overall tax levy. Taxpayers will be expected to pay $15.10 per $1,000 of property valuation. The City’s tax levy consists of the general fund tax levy, which was $0.09 decrease compared to the current fiscal year of $12.39, and the debt service levy, which was a $.38 increase compared to the current fiscal year of $2.71. 

City Administrator Mike Palmer says they were anticipating the debt service levy to increase due to various projects the City had bonded for. He notes it will be a short-term increase as the City pays off more of its debt. During the Council’s budget workshop, the City’s budget at that time showed a $20,000 deficit. Palmer says they make some adjustments, most notably reducing a $10,000 expense to have the swimming pool taken off for the summer and put back on in the winter, to about $1,000. Palmer points out, the budget actually shows $25,000 over for revenues. However, Palmer notes the City’s revenue streams will need to be re-evaluated due to COVID-19.

“Well the local option sales (and services) tax is one of the biggest ones. That’s the extra one-percent on all retail sales except for food and medicine. We’re already kind of estimating that the future revenues of those will probably drop a good 25-percent. Hotel/motel (tax), this situation is probably going to wipe that out for a month or so. The road use tax, people are driving a lot less. The last one is the (Wild Rose) casino. Essentially for every month that they’re closed, it costs the City about $11,000 in casino tax money.”

 The City’s overall tax levy is up slightly compared to the current fiscal year by $0.29.