The Tacoma News Tribune reports on a $7.2 million shortfall in the city budget, thanks to a 36% drop in expected real estate taxes:
The City of Tacoma may have to delay or slow construction on some projects in order to patch a projected $7.2 million shortfall from real estate taxes this budget cycle.
The shortfall represents a 36 percent drop from what the city expected to generate from real estate taxes: Officials budgeted for about $19 million of the $45 million fund from real estate taxes this biennium, but now project only about $12 million will come by the end of the year.
The drop comes because of a slower real estate market: Taxes collected from real estate sales are lower than expected, meaning there likely won’t be enough money to cover the projects slated for this biennium.
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On the list of possible cuts, according to City Manager Eric Anderson: deferring maintenance on City Hall, and eliminating $400,000 for major repairs to city buildings and seismic upgrades to fire stations around the city.
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Anderson told the City Council during an August study session that the city could also buoy the capital budget with funds from other areas, but that could be a dangerous proposition if the market doesn’t bounce back.
Hey no worries. It’s probably a safe bet to assume things will bounce back any day now. I hear we’ve been at the bottom since February or so.