HomeMy WebLinkAboutIR 2545 INFORMAL REPORT TO CITY COUNCIL MEMBERS NQ. 2545
;V�Mr�o To the Mayor and Members of the City Council September 8, 1975
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;rex�y Subject: COMPARISON OF GARBAGE FEE INCREASE AND TAX INCREASE
During a recent City Council Budget Study Session, a. request was
made for a comparison of the proposed garbage rate increase with a
tax increase that would provide the same revenue.
The proposed increase in the waste disposal fee is equal to 500, per
month or $6 per year for most residential customers. This change is
estimated to result in an increase of $660,000 additional revenue per
year. This additional revenue equates to the same revenue to be
derived from a 3.8i� tax increase.
The impact of the increased waste disposal fee would be $6 per year
per household. The imposition of a 3.80, tax increase would equal $6
on a piece of real estate with a market value of $29,400. Property
at a value of less than this would pay more with a waste disposal fee
than with a tax increase.
Current figures are not available as to the number of tax accounts
which exceed $29,400. With the current effort to update the tax rolls.,
it is not possible to make this analysis; however, a study was made in
March 1974, showing various brackets for real property accounts,. At
that time, there were 153,686 real property accounts including resi-
dential and non-residential property. Of this number, 13,931 accounts
exceeded $25,000 at 100% market value, including non-residential pro-
perty. It is known that the inflation which has occurred since March
1974 would increase the number of accounts above $25,000, but an exact
number is not available. It is estimated, based on this analysis, that
approximately 106 of the residents would pay more money through a tax
increase than a garbage rate increase as proposed.
* * * * * * * * * *
Should members of the City Council desire additional information on
this subject, we shall attempt to provide it.
Respectfully submitted,
104V4-
R.. N. Line
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS