Anticipated revenue from real estate taxes in Butler's proposed 2021 budget is about $60,000 less than this year's budgeted amount despite a .75-mill tax increase due to losses from property reassessments and city council's decision to lower the tax collection rate.

The $11,149,107 budget for 2021 that was introduced Thursday is higher than this year's $9,473,995 budget. Real estate tax revenue for next year is estimated at $2,002,410 reflecting a slight decrease from this year's $2,065,766 despite a real estate tax rate increase from 43.25 mills to 44 mills.

Mayor Ben Smith said property reassessments that lowered property values will result in a decrease in tax revenue.

“We're expecting overall tax revenue to be lower due to reassessments that have been happening,” he said.

In addition, he said council reduced the tax collection rate from 95% to 94% to more accurately reflect collections.

“I think our council did a good job of having realistic income instead of inflating it to balance the budget,” Smith said.

The proposed tax ordinance directs 30 mills for general purposes, 9.25 mills for debt service, 2 mills for recreation, 2.15 mills to open space lighting, .50 mills to the Butler Area Public Library and .10 mills to the Shade Tree Commission.

It's a change from this year's tax ordinance that allocates 8.40 mills to debt service, 2.35 mills for open space lighting and does not include millage for the Shade Tree Commission.

At a budget workshop meeting held Thursday morning before the regular council meeting Thursday evening, city officials said the tax increase would have been .80 mills, but the millage dedicated to open space street lighting was reduced due to lower electric bills.

The Shade Tree Commission requested the money to hire someone to prune trees.

The proposed budget ordinance appropriates $11,149,107 to the general fund, $791,170 to the capital projects fund, $861,833 to the parking fund and $454,682 to the Liquid Fuels Tax fund.

The 2020 budget ordinance appropriated $9,473,995 to the general fund, $1,985,986 to the capital projects fund, $977,900 to the parking fund and $858,759 to the Liquid Fuels Tax fund.

Revenue from per capita, earned income, mercantile, local service and business privilege taxes was reduced from $3.1 million in this year's budget to $2.9 million in the 2021 budget.

License and permit fee revenue in the proposed budget is estimated at $388,550, a slight increase over this year's budget.

Revenue from parking was reduced from $829,588 in this year's budget to $717,234 in the 2021 budget.

Expenditures include an increase for the fire department from $2.98 million in the 2020 budget to $3.4 million in the 2021 budget. The difference is due to the $1.3 million allocated to buy a new ladder truck.

Other department budgets slightly increased from this year.

Those budgets include the police department increasing from $2.1 to $2.2 million, the streets department increasing from $345,622 to $350,729, the business and community development office increasing from $313,470 to $316,475, the financial administration budget increasing from $497,612 to $508,423, the city clerk's office budget increasing from $181,647 to $187,113 and the treasurer's office budget increasing from $137,612 to $140,484.

The street lighting and parks and public property department budgets slightly decreased from this year. The department of parks and public property's budget decreased from $261,204 to $256,805, and the street lighting budget decreased from $150,000 to $137,500.