During the recession, the City lost over 35% of our taxable value and as a result our tax revenue. Although the economy is better the City finances have not improved.
61.5% of the City's revenue is property taxes paid by residents and businesses throughout the City. During the recession the City lost over 35% in taxable value which equaled a direct reduction in general tax dollars generated. When business and residential property values started dropping in 2008 the City taxable value dropped by the same amount. The City does have an excellent financial forecasting process and we addressed this situation through proactively cutting out expenses (personnel, programs and capital outlay) to keep the City financially stable.
When the economy started to recover, the City's taxable value was only allowed to grow the amount of inflation regardless of how much property values increased. So, in a year the City's values increase more than inflation, we are forced to "roll-back" or reduce our tax millage. This has caused the City to struggle to recover. Due to the recession and the cap on the millage the City will not return to 2006 levels until at least 2038. That is assuming there aren't any more economic downturns before 2038 which is unrealistic. This also does not provide for actual inflation as we will be expected to do business in 2038 on 2006 revenues.