2013 Budget

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To review 2013 Adopted Budget document, please click Here

 

Proposed 2013 Budget Update

 

The City Council finished their review of the proposed 2013 budget using the study session process. The Council reviewed the budget over the course of four meetings and each one was broadcast live on JATV. The sessions may also be viewed on demand using our Videos webpage.

By consensus on the 10/18/2012 study session, the following changes were made to the City Manager Proposed 2013 Budget:

·         Increase funding for the Janesville Area Convention and Visitors Bureau by $35,500. The revenue sharing of room taxes collected to provide funding to JACVB will increase to 42.5% from 37.5%. This is a reduction of General Fund room tax revenue of $35,500.

·         Increase concession revenue $5,000 for beer sales at Dawson park.

·         Add 1.0 FTE Police Officer at a cost of $63,565.

·         Reduce overtime in the Assessors budget for a savings of $17,093.

·         Balance these changes with the additional use of $76,972 of applied fund balance.  


Budget Public Hearings Held on November 12 & 26, 2012
The public hearings for the 2013 budget were held on November 12 and 26 during the City Council meetings (7PM, City Hall Council Chambers, 18 N. Jackson Street). Individuals had the opportunity to share comments with the Council about the budget.

2013 Proposed Budget Information & Budget Steps

Step One: Begin with a Budget
The process is similar to how you must budget your paycheck to pay for rent, food and clothing; you need to know where your money is going (expenditures) and how it is coming in (revenues). First, City of Janesville staff prepare a budget that details how much money (revenue) is needed to cover planned expenditures from the City's General Fund. The City of Janesville general fund (excluding the library) has budgeted $42.8 million to pay for year 2013 General Fund expenses. The General Fund is the City's primary operating fund. Activities such as police and fire protection, park maintenance, recreation, snow removal, street maintenance, and general administration are paid for from the General Fund. The Janesville Hedberg Public Library's 2013 budgeted total expenditures are $4.0 million. Your property taxes and non-property tax revenues are used to cover expenses from these funds.

Property tax is the City's and library's largest source of revenue, used to pay for library and city-provided services such as snow removal and police protection. More than half (63.9 percent) the costs to administer city government and library services are paid for through your property taxes. The remaining non-property tax revenue comes from financial aid from the State of Wisconsin, user fees, permit fees, non-property taxes, interest, rents or fines.

Some services such as transit receive subsidies from the General Fund that only partially cover the cost of their activities. So funding only partially comes from taxes, the rest from user fees. For example, additional revenue to fund the City's transit service comes from bus fares. You pay directly for how much bus service you use. The Water, Wastewater and Stormwater Utilities are funded through utility charges and do not receive any assistance from property taxes - you are charged on your utility bill according to how much service you use.

Step Two: Calculate the "Property Tax Levy"
After determining how much revenue Janesville will receive from the state and other non-property tax sources, we must make up the difference with property taxes. The property tax levy is the total amount of revenue needed from property taxes to cover General Fund and Library expenditures. Of the $46.8 million that the City of Janesville government and Library has budgeted to pay for year 2013 expenses, $29.9 million will be raised through the property tax levy and $16 million will be raised through non-property tax revenues and applying $926,435 of fund balance.

Step Three: Calculate the Property Tax Rate
To figure out the property tax rate you must know two things: the tax levy (just explained) and the city's total assessed value. Assessed value is the value of all Janesville properties for tax purposes and is determined by the City Assessor. The City's total estimated assessed value of real and personal property is $3.9 billion. Here is how to calculate the tax rate:

Tax levy (including TIF)/ Assessed value = property tax rate, or
$30,664,779 / $3,894,122,220 = 0.0078747

Tax rates are reported per $1,000 of assessed property value; therefore, the local tax rate is $7.88.

Step Four: Calculate Your Tax Bill
To calculate the General City portion of your tax bill, a tax rate of $7.88 means that for every $1,000 of property you own you are taxed $7.88 for city government services. For example, a Janesville resident who owns a home assessed at $100,000 will pay $788 in 2013 (100 x $7.88 = $788) for municipal services such as snow removal and parks. But it will not educate your children or provide judicial services. Those services are paid for from Janesville School District and Rock County portions of your tax bill.

Your Tax Bill: 5 Different Jurisdictions
Your property tax bill adds together the tax levy of five different taxing jurisdictions. These "taxing jurisdictions" are Janesville School District, City of Janesville (including Hedberg Public Library), Rock County, Blackhawk Technical College, and the State of Wisconsin. Instead of having you pay separate bills to each governmental unit, the levies from all five are combined into one bill for your convenience. After you pay your property tax bill, the money is divided and each taxing jurisdiction receives its share.

                                                       

Based on Assessed Tax Rates

 

For 2012

 

For 2013

  Amount

  Increase/

(Decrease)

Percentage

Increase/

(Decrease)

 Janesville School District

$1,041.19 

 

 $996.63

($44.56)

(4.3%)

 General City

$948.97 

 

$945.74

($3.23) 

(0.3%)

 County

$773.77 

 

$783.28

$9.51 

1.2%

 Blackhawk Tech College

$219.48 

 

$222.09

$2.61 

1.2%

 State

$20.87 

$20.39

($0.48) 

(2.3%)

 Gross Taxes Paid

$3,004.28 

 

$2,968.13

 ($36.15)

(1.2%)

 Less: First Credit

$67.48 

 

$64.65

($2.83) 

(4.20%)

 Less: Lottery Credit

$89.31 

$90.12

$0.81 

0.90 %

 Net Taxes Paid

 $2,847.49

 

 $2,813.36

 ($34.13)

(1.2%)

 Est. Avg. Assessed Home Valuation  $120,100    $120,100