The City Council put its promise to the voters in writing last week by passing a resolution dedicating future sales-tax revenue toward offsetting the impact of a $6 million street repair proposal.
Officials are hoping to use projected sales taxes from the new Fabyan Crossing shopping center and surplus funds in the annual budget to abate any increases in the city’s property tax rate caused by issuing the bonds.
“This resolution formalizes the intent of the council to minimize the effect (of the bonds),” said city administrator Phil Page. “Hopefully, the voters will see that the city is serious about it.”
The city is asking Geneva voters on Nov. 8 for permission to borrow the funds so it can spend an extra $2 million a year over the next three years to rebuild portions of more than 66 streets.
Public Works director Tom Talsma said doing the extra work now will save the city money in the long run because the new pavement will last longer, allowing the street department to concentrate on preventive maintenance rather than making repairs as conditions dictate.
According to administration estimates, the city will receive in fiscal 1995-96 about $225,000 in sales-tax revenue from the Fabyan Crossing center at Randall Road and Fabyan Parkway. The amount is expected to increase to $365,625 in fiscal 1996-97.
Page said the city’s goal in abating the property taxes is maintaining the long-term debt tax rate at about 15 cents per $100 of assessed valuation. The city’s current total tax rate, including long-term debt obligations, is 90 cents per $100.