By Cori Smelker
Contributing Writer

Residents of Universal City may see a lower ad valorem tax rate on their property, but increasing property values could mean more tax dollars flowing from residents’ bank accounts into the city budget.

Ken Taylor, Universal City city manager of Universal City led discussion of the tax rate and budget during the City Council’s Sept. 16 meeting.

Ad valorem is a tax based on real estate or personal property. The city’s new rate is $0.512972 per $100 of assessed property value, actually a decline form the previous year’s rate.

“This is actually a reduction from last year,” Taylor said. “Our maintenance and operation (M&O) taxes have decreased as well as our interest and sinking (I&S) fund.”

One reason for a decrease in the ad valorem taxes, he said, is an increase in commercial and residential properties in Universal City over the prior year.

Taylor also presented an amended 2008 budget, to explain certain overages that occurred during the year. Most of the amendments were in the areas that were immediately affected by the unexpected rise in gas prices during the course of the 2008 fiscal year.

“(The price of) gas and the purchase of new equipment were the areas where we had to make some major adjustments,” Taylor told the council. The budget did balance, however, as cuts were made in other areas to compensate for the shortfalls experienced because of the gas price increase.

The amended budget was passed by the council.

The city’s Web site is undergoing an overhaul. Much research has gone into what pages are the most viewed, and by whom. The site developers told the council they are not sure what will stay and what will be changed, although the research will go a long way in helping them.