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Real-Life Math

"As a city administrator, you need to have quick math skills. You are balancing many budgets in your everyday life. You need to have the ability to give financial forecasts and statements without searching through your files," says city manager Judy Rogers.

You have yearly budgets to predict and present to city council. During the course of the year, you will stay in tune with expenses and incoming income to make sure your budget doesn't go over what you originally projected. You also have to find ways to increase revenues.

Your budget for the current fiscal year was just over $108 million. That's $2.2 million more than last year.

The property tax rate was $1.93 per $100 of assessed property value this year. In the new budget, the rate would be $2.34 per $100 of assessed property.

  1. How much did the property tax rate increase?
  2. Your office building has a value of $147,000. What will be your new tax bill next year? How does it compare to the current year?
  3. Following the same rate increase, what will be the amount of your tax bill two years from now?

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.