LOUISBURG — The Louisburg City Council has approved a 2021 budget that lowers the property tax mill levy by more than 1.5 mills.
The 2021 budget, adopted by the council on Monday, Aug. 17, sets the mill levy at 32.833 mills, down from 34.448 mills in 2020.
In addition to changes in the mill levy, a homeowner’s property tax bill will fluctuate from year-to-year as the property’s appraised value moves higher or lower. If the appraised value of a $200,000 home was unchanged, the city portion of the owner’s property tax bill should decrease from $792 last year to $755 in 2021, according to city budget numbers.
The city’s budgeted 2021 expenditures of $2,879,500 would be an $119,172 decrease from its estimated 2020 expenditures of $2,998,672, according to the city.
General fund expenditures are paid for through property taxes, sales taxes, fees for service, license fees and franchise fees, according to the city’s budget report.
The city’s general fund revenue of $2,879,500 is derived three ways: 42 percent property tax; 34 percent sales tax; and 17 percent for all other collections, such as licensing and service fees and other sources.
The total 2021 property tax revenue is budgeted at $1,649,125, an increase of about $8,000 from the projected 2020 property tax revenue of $1,641,311, according to the budget report.
Property tax revenue is expected to increase with the city’s assessed valuation rising from $47.6 million to $50.2 million.
Sales tax collections are projected to decrease 10 percent in 2020 and remain flat in 2021.