At next Tuesday’s meeting, the City Council will receive a presentation on a proposal to make student housing more affordable.

The subsidy could come from additional tax revenue from the commercial properties.

During the Worksession on April 11, 2023, leading up to the introduction of the FY ’24 budget, the Council engaged in discussions about adjusting the tax rate for commercial, industrial, and apartment properties in the City. Following these discussions, the FY’24 budget was introduced and adopted, maintaining the tax rate at 30.18 cents for residential property and implementing an increase to 33.18 cents/$100 assessed value for commercial, industrial, and apartment property, reflecting a 3-cent increase.

This additional 3-cent tax on commercial, industrial, and apartment property is anticipated to generate an extra $515,000 for FY’24. Out of this total, $340,000 could be allocated for the Needs-Based Student Housing Subsidy. Moreover, Council deliberated on other potential uses for the surplus revenue, including contributing to a portion of the $225,000 in business retention/economic development grants that were approved by the Council on January 9, 2024.

At the July 23, 2023 meeting, a subcommittee was formed to explore the proposal further. CM Adams chaired the committee and will present a report at next week’s meeting.