Butterfield seeks tax hike
On Jan. 17, the Butterfield City Council approved the ballot language for a tax rate increase issue that will appear on the April 3 ballot.
The additional tax is projected to increase street revenue by around $7,000 annually. The council plans to use the funds to chip and seal a percentage of city streets each year.
According to state of the city letter, the council believes it is necessary to increase the tax rate in order to finance the city's street maintenance expenses.
If the tax issue is approved, Butterfield's city tax rate will be raised to 98 cents on $100 valuation. Of the total tax levy, 48 cents will be used to finance general operating expenses and 50 cents will be used to finance street repairs and maintenance.
Butterfield residents who own property that is assessed at $100,000 currently pay around $79.32 in annual city taxes. If the proposed street tax is approved, the same resident will pay an additional $79 per year to finance city street improvement projects.
The revenue will be strictly allocated for street improve-ments and related activities. Tax funds will not be used for general operating or other expenses.
Currently, the city maintains streets through a state gas tax, which generates around $1,000 per month. Those funds are used for street lighting, patrolling, repairs and maintenance expenses.
The aldermen stated their belief that the proposed tax increase will have a positive effect on all city residents.