AD VALOREM TAX REFERENDUM September 28, 2010 MYTHS AND FACTS - PowerPoint PPT Presentation

AD VALOREM TAX REFERENDUM September 28, 2010 MYTHS AND FACTS Presented by: City of Orange Beach Citizens Finance Committee

MYTH 1 We don’t need new taxes, just cut the fat from the budget

FACT The fat has been cut!

City of Orange Beach – Budgeted Expenditures

City of Orange Beach – Budgeted Expenditures -19% -3.2M

City of Orange Beach – Budgeted Expenditures +4% +200K

City of Orange Beach – Budgeted Expenditures -36% -1.2M

City of Orange Beach – Budgeted Expenditures -17% -4.2M

City of Orange Beach – Budgeted Expenditures 11% 23% 66%

City of Orange Beach – Number of Employees -67

MYTH 2 This is just a way to raise City revenues to spend more money

FACT The revenue generated will only MAINTAIN the current level, not increase the total City revenue

MYTH 3 I can Vote No and it really doesn’t matter

FACT A NO Vote WILL reduce City Services!

Cost by Department • Administration $ 1,100,000 • Court and Corrections 557,000 • Finance 565,000 • Engr and Eviro 879,000 • Public Works 2,940,000 • Police and Dispatch 3,383,000 • Fire and EMS 3,089,000 • Parks and Rec 1,504,000 • Library 435,000

MYTH 4 My taxes are already too high, I can’t afford any more

FACT Your property taxes will decrease from the high level of 2007

TAX EXAMPLES 2007 2011 Valuation Taxes Projected Taxes w/o Taxes with Tax Decrease Valuation Increase Increase Difference 2007 to 2011 Homestead Property 167,350 424 100,000 259 271 12 153 251,025 658 150,000 419 441 22 217 502,050 1,361 300,000 899 951 52 410 Second Homes / Condos 241,935 774 150,000 480 510 30 264 564,516 1,806 350,000 1,120 1,190 70 616 806,452 2,581 500,000 1,600 1,700 100 881 Rental Homes / Condos / Businesses 241,935 1,548 150,000 960 1,020 60 528 564,516 3,613 350,000 2,240 2,380 140 1,233 806,452 5,161 500,000 3,200 3,400 200 1,761 1,209,677 7,742 750,000 4,800 5,100 300 2,642 1,612,903 10,323 1,000,000 6,400 6,800 400 3,523

TAX EXAMPLES 2007 2011 Valuation Taxes Projected Taxes w/o Taxes with Tax Decrease Valuation Increase Increase Difference 2007 to 2011 Homestead Property 167,350 424 100,000 259 271 12 153 251,025 658 150,000 419 441 22 217 502,050 1,361 300,000 899 951 52 410 Second Homes / Condos 241,935 774 150,000 480 510 30 264 564,516 1,806 350,000 1,120 1,190 70 616 806,452 2,581 500,000 1,600 1,700 100 881 Rental Homes / Condos / Businesses 241,935 1,548 150,000 960 1,020 60 528 564,516 3,613 350,000 2,240 2,380 140 1,233 806,452 5,161 500,000 3,200 3,400 200 1,761 1,209,677 7,742 750,000 4,800 5,100 300 2,642 1,612,903 10,323 1,000,000 6,400 6,800 400 3,523

TAX EXAMPLES 2007 2011 Valuation Taxes Projected Taxes w/o Taxes with Tax Decrease Valuation Increase Increase Difference 2007 to 2011 Homestead Property 167,350 424 100,000 259 271 12 153 251,025 658 150,000 419 441 22 217 502,050 1,361 300,000 899 951 52 410 Second Homes / Condos 241,935 774 150,000 480 510 30 264 564,516 1,806 350,000 1,120 1,190 70 616 806,452 2,581 500,000 1,600 1,700 100 881 Rental Homes / Condos / Businesses 241,935 1,548 150,000 960 1,020 60 528 564,516 3,613 350,000 2,240 2,380 140 1,233 806,452 5,161 500,000 3,200 3,400 200 1,761 1,209,677 7,742 750,000 4,800 5,100 300 2,642 1,612,903 10,323 1,000,000 6,400 6,800 400 3,523

TAX EXAMPLES 2007 2011 Valuation Taxes Projected Taxes w/o Taxes with Tax Decrease Valuation Increase Increase Difference 2007 to 2011 Homestead Property 167,350 424 100,000 259 271 12 153 251,025 658 150,000 419 441 22 217 502,050 1,361 300,000 899 951 52 410 Second Homes / Condos 241,935 774 150,000 480 510 30 264 564,516 1,806 350,000 1,120 1,190 70 616 806,452 2,581 500,000 1,600 1,700 100 881 Rental Homes / Condos / Businesses 241,935 1,548 150,000 960 1,020 60 528 564,516 3,613 350,000 2,240 2,380 140 1,233 806,452 5,161 500,000 3,200 3,400 200 1,761 1,209,677 7,742 750,000 4,800 5,100 300 2,642 1,612,903 10,323 1,000,000 6,400 6,800 400 3,523

CONCLUSION The Facts are clear: A YES Vote will maintain City Revenue and Services at the current levels. A NO Vote will require that City Services be CUT!

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