McMinnville officials received their first look at a proposed budget for fiscal year 2012-13 this week. It includes a 19-cent decrease in property taxes.With the tax decrease, the city has a projected fund balance on July 1, 2012 of $4.3 million and a projected ending balance on June 30, 2013 of $2.8 million.City administrator David Rutherford included the tax decrease in the budget at the direction of McMinnville Mayor Norman Rone, but he discouraged it.“At the mayor’s request, the budget does reflect a 19-cent tax reduction,” Rutherford said in his letter attached to the budget. “However, this tax roll back will create a significant shortfall within the next three years.”According to projected numbers over the next three years, the city’s beginning balance will reduce from $4.3 million in 2012, to $2.8 million in 2013, to $1.7 million in 2014 if the tax rate is lowered by 19 cents.
City budget includes tax decrease