Penny wise, pound foolish! Geez people, don't let headlines guide your fiscal planning! The city is in good shape, and aside from some bonding increases, the actual fiscal planning is sound. This glut in bonding will subside in the next year or two and the tax rate will go down. These percentages are so misleading and are bieng used to scare people. Cutting like crazy now only hurts planning for later. Cuts are ok, just not so deep that it hinders growth. Its like a business, a small business has growing pains and unfortuantely will have financial highs and lows. But with smart financial planning we will be better off in the long run by attracting new tax paying citizens and businesses. You can't compare a new business to a blue chip company, they have different problems, just like you can't compare Jordan to Bloomington or even Shakopee. Think with your head not your emotions. That's why the city council gets elected to make decisions that may not be popular with a portion of misinformed public but is better for all citizens in the long run.

Jordan is not a new business. It's been around for about 150 years. Headlines don't guide my fiscal planning. My income does, and my income isn't going up 14% next year. An awful lot of people in this town are having to tighten their belts, and they want the city to do the same.

And for what it's worth, the LOL Ms. Swanson injected in her comment tells me she was kidding.

Johnny 14, here's what I understand.

My contributions to my church have been reduced. My motorcycle is for sale. My thermostat is turned down to 65 degrees. My water heater and water softener settings have both been reduced. I eat out less often than last year. I take half as many trips as I did a year ago. My wife has mostly stopped using the clothes dryer to reduce our electric bill. Neither my wife, nor I have purchased a new pair of shoes in the past 12 months.

What's happening in MY bubble is my income is going down, and my expenses are going up. If this continues, there won't BE a future. If you're well off enough to not have to watch your tax dollars, I envy you. Say a prayer of thanks for your good fortune. For me, a 14% increase in the cost of anything is a burden.

I'm not real smart, so you'll have to bear with me. The city council has been discussing a BUDGET increase with percentages varying from 22 to 14%. Is that correct?

And budget increases do not directly translate into TAX increases. Is that correct? (Sorta begs the question, "Why not?", but I'll take your word on it.

My city taxes in 2008 were $879.69. In 2009 they're proposed at $978.83 - an increase of $99.14 ($8.26/mo.). My Casio says that my new taxes will be 111.27% of last year. So yes, for me, 14% is not precise. 11% would be more accurate. My home Taxable Market Value is $180,300 in 2009 - down from $190,600 in 2008 (94.6% of the '08 MTV). These numbers are taken from my Proposed Property Tax for 2009 statement.

Is an extra $8.26/month a lot of money? Well, it would just about cover the insurance on my motorcycle.

What am I missing?

Did I see that the fines collected were down by 40+%? Now I am going completely off the top of my head. Were they down like $6x,xxx.00?

Dave, why was that?

To Mr. Boncher and the other taxpayers of Jordan:

Good Morning,

I would like to help you and everyone else understand their taxes more if I can. The tax increases you are talking about are from the preliminary tax levy for the City of Jordan. The City Council passed a preliminary levy in September which was a 22% increase over 2008. This levy was $596,000 higher with $510,000 of new/old debt issued. The projects which were bonded in 2008 were for the ladder fire truck, the fire hall expansion, Hwy282/21 project and Park Drive. The rest of the increases were due to the general fund levy and some tax abatements. That preliminary levy is the number on your tax statement that was mailed out by the County. This preliminary levy can be reduced by the Council and has been. The debt levy can't be reduced because we need to have those funds levied to pay the bonds. The general fund levy can be reduced by cuts to spending for operations. This levy has been cut dramatically since September. With the cuts to the general fund budget the levy increase sits at a 9.494% increase. The 9.494% doesn't mean your taxes will go up 9.494%. On average the tax increase under this current levy about would be between 3-4% depending on your taxable value. For Mr. Boncher at that levy amount your taxes for the City of Jordan would be $886.20. This would be an increase of $6.51 for 2009 payable taxes for you. This will be much lower than a 14% increase and actually less than 1% since your property value was reduced.

I don't wish to join in your discussions about what project should have been done or not done but if anyone would wish to learn more about their actual proposed tax increases please call me at city hall. I would be more than happy to explain the process and what your proposed taxes would be with the current budget cuts so far. I have received many calls and most people are able to understand the tax levy much better if they give me the opportunity to explain it to them further. Remember those tax statements are the highest your taxes could be but the City Council has reduced the levy and the impact to our tax payers will be reduced greatly. The levy has gone from a 22% increase to a 9.494% increase so far. In general terms you can take the increase to the City portion and cut it in half. I know the County is in the process of cutting their levy back to so all government units are working to help reduce the tax strains on all of us.

Thanks and have a nice day,

Tom Nikunen
Finance Director
City of Jordan
952-492-2535