The Plymouth City Council members met with Eric Walsh from Baker Tilly Monday night to review an analysis of the city’s Capital Asset planning for the next five years.
The department heads submitted plans for the next five years of projects or needs that are on the schedule and those plans were reviewed by Baker Tilly officials. Suggestions were then made on how to increase revenue or free up money in other funds to keep operations where they are with planned projects.
Clerk-Treasurer Jeanine Xaver explained that the property tax caps are creating a huge revenue loss for the city. In 2020, $1.4 million was expected to be lost as the net assessed valuation is not keeping up with the growth quotient in this scenario. As a result, the council members need to find ways to make up the losses in order keep moving forward with the services the city provides, the planned projects and to keep employees employed to provide those services.
There are several ways the council could raise revenue. The council could impose a wheel tax which would provide $350,000 in revenue. The city council discussed this as a revenue source in 2017, but decided against implementing the tax. Another option is an increase in user fees which may be considered in 2021. The council could also impose a water hydrant fee which would increase revenue. Additionally, storm water fees have not been changed from their rate of $2.05 per residence since the inception of the rate in 2008. The average stormwater rate in the state is about $5.00.
Changes in the Cumulative Capital Development Fund and other funds could also free up some money to spend on needed improvements and projects in the city.
No decisions were made Monday night, but the council will take the suggestions under consideration as the 2021 budget is being prepared for publication.
