New London’s total property values rising
By Robert Cloud
The Common Council’s Budget Committee of the Whole voted to increase the New London’s property tax rate by 3 cents per $1,000 of equalized value.
The estimated 2020 mill rate will be $8.98 per $1,000.
City Treasurer/Finance Director Judy Radtke told committee members the mill rate is only an estimate because her calculations are based on equalized value rather than assessed value.
The state still needed to established equalized property values when the budget was presented to the committee on Wednesday, Oct. 16.
New London’s proposed 2020 operating budget is set for $7.29 million, an increase of $184,655 over 2019.
City Administrator Lou Leone said most of the increase was due to rising health insurance costs and wages.
The city’s 2020 General Fund levy will increase by nearly $100,000, from $2.8 million to $2.9 million.
Expenditures on capital equipment, projects and road maintenance will rise from $325,000 in 2019 to $500,000 in 2020.
State aid will increase by $6,200 to $2.8 million, while highway aids will rise by $68,000 to $524,700 in 2020.
Debt service
Radtke said the city will see its debt payments rise from $663,600 in 2019 to $746,500 in 2020.
Of the 2020 total debt service, payments on the principal will be $496,830, while interest will be $249,650.
In 2021, New London’s debt payments will drop to $584,600.
Debt service payments are dropping because the bonds for the lighting project will be paid off in 2021, and the 2012 bond for the roofing and technology projects will be paid off in 2022.
In 2020, the city will borrow and pay off a $50,000 short-term loan.
“We want to be in a position that we can utilize our bonding opportunities in the greatest capacity possible,” Radtke said. “In order to do that, one of the things we have done this year is use the tool of a short-term bond.”
Equalized value
Leone said the city’s total equalized valuation will increase from $388 million in 2019 to $407 in 2020.
“We had a pretty good sized jump going into 2020,” Leone said.
Radtke noted the increase in total property value allows the city to increase its debt capacity, which in turn will help pay for the future downtown development projects it is currently planning.