Approved budget shows dropping tax rate, eliminating of debt

Eliminating some debt, a dropping tax rate, and close to $800,000 in undesignated reserves put the city in good financial condition, according to City Administrator Brian Heck.

Montgomery’s annual truth in taxation hearing was held on Monday. The meeting shows how the city is spending your money. It is also when the city council approves its portion of next year’s property tax levy and its budget.

The meeting was billed as a public hearing. However, only one reporter and Representative Todd Lippert, who spoke about legislative issues, were there.

In his slide show, Heck presented an overview of the budget, debt the city is paying on, revenue, expenditures, and how the city divides its dollars.

Some of the positives came in the review of the city’s debt. Heck noted money in the general capital improvement fund will be enough to pay off several debts, which won’t require levy dollars. These include the library, Fischer and Stone Ridge Developments, and Lexington Avenue.

Without that debt, Heck said the city’s only remaining financial obligation is for the 5th Street project done in 2015.

He also touched on the city’s undesignated reserves, which the city uses to pay bills between tax payments in May and November, and local government aid payments in July and December. He said at the end of last year, the city had just over $800,000 to help pay its bills.

Read more in the print edition.