Property Taxes Increase to Balance Budget

A millage rate of 4.039 drew support from four of the five council members at Tuesday night’s meeting. The increase is small, considering last fiscal year’s increase from 3.4742 to 4.0.

According to City Manager Jim O'Reilly, an increase was needed to ensure the city would generate the same amount of revenue as the current fiscal year; $2,441,131. O'Reilly refers to the increase as a "roll forward" rate, meaning to generate the same amount of revenue while property values decline is to increase the millage rate.

The only councilor who opposed the 4.039 rate was Jennifer Salmon. Salmon proposed a 3% salary increase for city staff, which would put the millage rate at 4.14. Salmon said the 3% would make up for the 3-4 years that city staff has not received a raise in their salaries.

“We want a full service city,” said Salmon. “Full service means a lot of people.”

Salmon went on to say that the increase signified 1% for each year that the staff had not received a raise in pay.

After showing gratitude for Salmon’s concerns, the other council members said they stood in support of the proposed 4.039 millage rate for FY 2012/2013.

“I feel like we should stay where we are,” said Vice Mayor, Samuel Henderson. “We have to consider that we’re asking people to pay more money out of their salaries to increase someone else’s salary and I think at some point, that might be hard for folks to swallow.”

The proposed millage rate of 4.039 passed with a 4 to 1 vote. Public hearings will be held on Wednesday, September 5 and Wednesday, September 19 at 7 p.m on the designated nights, the public is invited to come out and address the council regarding the city budget.