City Administrator Scott Bovick said Thursday that the lowest property tax levy in at least 15 years is sustainable, even if the city moves forward with its public safety complex, Memorial Building renovation and swimming pool projects.

He said the city is relying less on property taxes as a percentage of its total revenue.

“We are moving further and further away from a budget based on property taxes to a more user-tax budget,” Bovick said.

User taxes include pool and golf fees, building permits, vendor permits, hotel tax, phone occupation tax, cable television franchise fee and fines. They account for 22 percent of this year’s proposed city budget, while property tax accounts for 19 percent.

While the levy for property taxes may reach record lows in modern times, actual tax collections is also dropping from $1.1 million in 2008 to $895,996 in 2009.

“Although Nebraska can be somewhat insulated from national economic trends, the city needs to be prepared to deal with the current economy,” Bovick said. “A thorough analysis and fiscal discipline are necessary to fulfill the city’s needs without a future property tax increase,” he said.

He said the cost of fuel and materials are up, so it is challenging to meet priorities without a tax increase.

Sales tax, budgeted at $1.4 million, would bring in 29 percent of all revenue. The tax will bring in $1.7 million this year, which will allow for a $125,000 contribution to the LB840 fund. Bovick said sale tax collections will decline as work on the Omaha Public Power District power plants winds down.

He said the city’s sales tax never exceeded $150,000 a month before the construction began, but has exceeded the threshold in 17 of the last 24 months.

Bovick forecast revenue to pay the city’s debt to range from $592,595 in 2008 to $425,000 in 2016.

The city would borrow $1.3 million over 20 years for the public safety complex.

Mayor Jo Dee Adelung said the work of the city allows the city to plan its projects and helps avoid sudden tax increases because of projects.

“Scott makes it look easy today, but this is the result of debt tracking and forecasting,” she said.

In a discussion Thursday about expenditures, Bovick said the city’s take over of golf course management will increase expenditures this year. He said the city is also entitled to all of the golf course revenue and is expecting a subsidy of $187,000.

The number of rounds played is down since the city took over management, but Bovick hopes golfers will return.

“We’ve been clear with people who have asked, this is a business plan we think will be successful. It will not happen in one year, but in two or three years you will see the benefits of this,” he said.

Library

The Morton-James Public Library proposes an increase in wages to move from a 35 hour work week to 40 hours. The library proposes opening an hour earlier.

Public properties

Dan Giittinger reports that the city will exceed its fuel budget this year by $10,000. He said the cost of sand and salt has also increased from $10,000 to $30,000.

The budget includes $20,000 for architectural services for the Memorial Building and $15,000 for demolition of condemned buildings.

Parks

Over the next three years, $15,000 for new playground equipment is proposed.

Recreation

The city spends $14,000 and brings in $8,000 from recreation programs. The budget includes $15,000 to study the current condition of the 38-year-old city swimming pool.

Recreation Director Scooter Edmisten said attendance and revenue at the pool is up this year.

Police

The police department accounts for 26 percent of all city expenditures. Chief of Police Dave Lacy said reportable crime in Nebraska City is down 18 percent. “I like to think that is attributable to officers being more visible,” he said.