Frequently Asked Questions

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1. What is St. Joseph's current ad valorem tax rate?

The current city ad valorem tax rate is: $1.1398 per $100.00 of assessed valuation.

• General Fund (in the Public Safety Tax): $0.67
• Parks & Recreation Fund: $0.20
• Health Fund: $0.2198
• Museum Fund: 0.05
• Total: $1.1398

2. What is St. Joseph's total budget?

Read through the current fiscal year budget. View budgets

3. What is Ad Valorem?

A tax computed from the assessed valuation of land and improvements on real property.

4. What is St. Joseph's current Ad Valorem tax rate? Break down by funds.

The current City ad valorem tax rate is: $1.1395 per $100 of assessed valuation.

General Fund (inc Public Safety Tax): 67.00 cents
Parks & Recreation Fund: 20.00 cents
Health Fund: 21.95 cents
Museum Fund: 5.00 cents
Total: $1.1395

5. How much does the average citizen pay based on the above tax rate?

Buchanan County has set the assessed value of a residential property at 19% of its fair market value. The City’s tax levy is taken times this assessed valuation. So, for example: An individual who owns a home with an actual value of $100,000 would pay the following to the City: $100,000 x 19% = $ 19,000 assessed valuation. $19,000 divided by $100 = $ 190.00 x $1.1398 = $216.56 (City Real Estate Property Tax)

6. What is the total Sales Tax rate in St. Joseph?

8.7%. There are also some additional jurisdictions within the City of St. Joseph assessing sales taxes. For a breakdown, please see

Sales Tax Allocation table

7. What is the Operating Budget?

It is the plan for current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and service delivery activities of the City are controlled. The use of an annual operating budget is required by State law.

8. What is CIP?

The CIP or Capital Improvement Program is a 5-year financial plan matching the City's projected financial resources dedicated to capital spending with the City's highest priority capital needs.

9. How is the CIP developed?

The City maintains a separate five-year Capital Improvement Program categorized as follows:

- Individual Funds’ CIP projects (these projects include certain smaller Street projects, some Park improvements, Sewer improvements, basically any capital project paid for out of a specific fund’s dollars).
- CIP Sales Tax Projects (projects paid for out of the one-half cent capital improvements sales tax).

10. What revenue sources are used to finance CIP?

For the past several years, financing for most capital projects has been “pay-as-you-go”. In other words, capital projects are paid for out of the cash flow provided by the half-cent CIP Sales Tax and available monies from other fund balances.

Large Sewer CIP projects are financed by revenue bonds approved by a vote of the citizens as well as through bonds approved through development boards. The annual bond payments are included in the overall rates charged to customers.

Several years ago, improvements to the Parking Garages, Health Department, Parks Department facility, and Landfill facility were financed using PBA (Public Building Authority) issued bonds. Annual payments are authorized from the existing revenue streams of the funds in which the improvement occurred.

By State statute, the City is permitted, by vote of 2/3rds majority, to incur General Obligation (GO) debt in the amount not to exceed 20% of the assessed value of the City.

11. Why use General Obligation Bonds?

General Obligation (G.O.) Bonds are debt instruments much like a house mortgage, and generally run for a period of 20 years. The City identifies a major project (e.g. a fire station) or several similar projects (e.g. five road intersections) and determines that to complete the project(s) in a timely manner a debt issuance is needed. With all of the improvement needs in the community there are times the City might not want to wait until enough CIP Sales Tax funds had accumulated to be able to pay for the project. Or, projects might come up after all of the funds for the current CIP sales tax are “taken” for other projects as approved by the voters.

12. What are “funds” and why does the City have them?

The City receives revenues from many different sources. Some of them have restrictions on how they can be used. For example, money from the Federal government (called Community Development Block Grant, or CDBG, funds) must be used in low & moderate income areas, blighted areas, and or for other specified purposes. Monies received through the specially assessed parks maintenance property tax must be used maintain the City’s parks. The transportation sales tax approved by voters goes specifically to the Mass Transit Fund in order to support the City’s bus system.

In order to be sure that monies received are spent as legally required the City sets up different Funds (like separate bank accounts) to keep track of where the money comes from and how it is spent. This is verified every year during an audit by independent, outside auditors.

13. What is the General Fund?

This is the principal operating fund of the City and accounts for all financial transactions not accounted for in other funds. Most general fund revenues go to operate the City’s police and fire departments.

14. What is an Enterprise Fund?

A fund (also called a proprietary fund) established to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The major enterprise funds in the City are the Sewer, Landfill, Aviation and Transit funds.

15. What is Capital Outlay?

An expenditure which results in the acquisition of or addition to fixed assets, and meets these criteria: has an anticipated useful life of more than one year; can be permanently identified as an individual unit of property; belongs to one of the following categories: Land, Buildings, Structures Improvements, Equipment; constitutes a tangible, permanent addition to the value of City assets; cost generally exceeds at least $5,000 (per unit); does not constitute repair or maintenance; and, is not readily susceptible to loss.

16. What is the City of St. Joseph's fiscal year?

A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. The City of St. Joseph has specified July 1 to June 30 as its fiscal year.

17. Where can I get a copy of City of St. Joseph budget?

Copies of the budget books are available for viewing in the City's public library branches, can be viewed in the City Clerk’s Office, or contact the Administration Services Department, or on the City's website by clicking here.