Dipping below that level could negatively impact the city’s bond rating, which would affect its ability to sell municipal bonds that are used to pay for major projects.
This year’s general fund totals about $47 million. That balance is currently at $3 million and is expected to fall to between $1 million and $1.5 million at the end of this year and in 2010, Moller said.
“We’re going to need to decide whether more cuts need to be made,” he said.
Council agreed Wednesday night, July 22, to explore the possibility of a 6.13-mill tax increase. Council members will have vote on and pass additional resolutions before the tax increase could be put on the November ballot.
Moller said such a tax would be used to pay for general operations, including covering costs of police, fire, health and parks and recreation.
The estimated annual revenue generated from a 6.13-mill levy would be about $5.8 million, said Julie Joyce-Smith, director of real estate in the Butler County Auditor’s Office.
If voters passed the tax, property taxes would increase by an estimated $187 annually for the owner of a $100,000 home, Smith said.
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