 The city's main sources of tax revenue come from income tax, set at 2.25 %, and property tax. Voters approved an increase in the income tax rate from 2.0 % in November 2013 to fund a new police station and the new rate took effect January 1, 2014. The rate increase includes a sunset provision that requires the tax rate to return to 2.0 % once debt is paid off on the new facility. In 2014, the city operated on a budget of approximately $ 40 million. The largest percentage of the budget, 31 % or $ 11.9 million, was spent on public safety services followed by 22 % or $ 8.5 million on basic utilities. Debt service accounted for $ 6.0 million or 17 % of the budget while transportation projects accounted for 9 % or $ 3.37 million of the budget, 8 % or $ 3.33 million towards general government expenses, and $ 2.35 million allocated for construction of a new police station.
