Question: Because of the downturn in the state s economy the mayor
Because of the downturn in the state’s economy, the mayor of Stratton thinks that uncollectible taxes are likely to increase from 5 percent of total tax bills to 10 percent in the coming fiscal year. The total value of all of the properties in the town of Stratton is $ 300,000,000 and the approved budget is $ 3,500,000. Properties are assessed at their full value. A total of $ 5,000,000 worth of properties is exempt from taxation. To minimize tax increases in the coming fiscal year, the mayor and town council have decided to take $ 500,000 out of the town’s rainy- day fund (a reserve used to meet short-term budget shortfalls) and apply that money toward the coming year’s budget. How much does the town have to charge per $ 1,000 of assessed valuation to raise the needed $ 3.5 million? Show your calculations. You may round your answer to the nearest penny. Be sure to check your answer by multiplying the amount you propose billing by the expected tax-collections rate to show that the amount you expect to collect is enough to meet Stratton’s fiscal needs.
Answer to relevant QuestionsRiver County is planning several capital acquisitions for the coming year. These include the purchase of two new garbage trucks at $ 150,000 each, one new bulldozer at $ 240,000, three new riding lawn mowers at $ 16,000 ...Part I Marquoya College (MC) is a medium- sized private school located in the Midwest. In the past, MC administrators established a budget for the next academic year by adding a specific percentage (e. g., 6%, 8%) to the ...What are two forecasting techniques that can be used if no historical data are available?The Free Health Care Center (FH) charges each patient $ 5.50 (not quite free after all, but pretty close). Due to rising costs, the center has been forced to consider raising this charge to $ 6.00 or $ 6.50. If the price ...What is a “cost objective”?
Post your question