By Mark Carlisle | Daily Independent
The Maricopa County Board of Supervisors cut the county’s share of property taxes last week and tentatively approved a $324 billion budget for the upcoming fiscal year.
The board cut the county’s property tax levy by 5.5 cents per $100 of assessed value. For a homeowner with property assessed at $500,000, it would translate to an annual savings of $275.
After tentative approval of the budget last Monday, May 17, a public hearing will be held Monday, June 21, before the board votes on the final budget. The new property tax rate will be officially adopted Monday, Aug. 16, but the new rate has been factored into the tentative budget approved last week.
The reduction in property taxes, from $1.4009 to $1.3459 per $100 of assessed value, will cut the county’s revenue by $26.5 to $26.6 million a year, said Cynthia Goelz, Maricopa County’s chief financial officer.
The cut will mainly be absorbed by canceling a $23 million to $24 million planned transfer for the county’s pension liability reserves. Another $100,000 will be removed from the money the county planned to set aside for contingency. Finally, the county set aside $3 million for increased operating costs if the county board of supervisors should be increased from five members to nine — the state legislature is considering a bill that would require such expansion.
Board chairman Jack Sellers, who proposed the property tax cut, said they would cut the rates for now, but may be required to raise them again if the state legislature passes bills that either increase the county’s costs or cut its revenue.
“If there is legislation that would increase the cost to the county, we may need to go back and reassess our rate. But at that point I think we make it clear to people why we’re doing that,” said Mr. Sellers, whose district represents the southeast Valley.
Among other possible bills that could hurt the county’s pocketbook, the legislature is considering an income tax cut that could reduce state funds dispersed to local governments.
Supervisor Clint Hickman, who represents the northwest Valley, also noted if property values in the county drop, the board may need to increase rates to offset the loss in revenue.
Supervisor Steve Gallardo, who represents the southwest Valley and is the lone Democrat on the board, grilled Ms. Goelz but she ensured him that no county programs would be harmed or department budgets cut other than the three reductions in funding she mentioned — to the pension reserve, removing contingency funds for a possible expansion of the board of supervisors, and a small cut to the county’s general contingency funds.
Supervisor Steve Chucri, whose district represents the northeast Valley, agreed it is important to thoroughly examine what the county is giving up to make the tax cuts possible.
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