Mayor Dennis Hession announced today that he would not seek a renewal this fall of the "levy lid lift," a two-year property tax measure approved by voters in November 2005 that raised about $3.3 million a year.

"Conservative budgeting, fiscal responsibility, and a strong economy have combined to greatly improve the City's financial outlook," the Mayor said. "Our citizens generously provided the help the City needed during a financially challenging time, and now I intend to offer the citizens the tax relief they deserve."

In addition, the Mayor is working to reduce the tax on the City's utility departments in 2008. The tax on the City-owned utilities, which include water, wastewater, and garbage, was also increased by 3 percent also in 2005 to balance the City's budget.

The Mayor intends to work with the City Council in support of this effort.

For many years, the City has grappled with a long-term structural imbalance in its budget, which shows expenditures growing at a rate higher than revenues.

Citizens were required to approve the levy lid lift because the City is limited to 1 percent increases in property tax collections annually without a vote of the people. Citizens were asked to lift that constraint, or "lid," to give the City the ability to capture the statutory limit on property taxes.