TAX INCREASE. BE AT TOMORROWS MEETING. NEWS No tax increase in Southaven By ROBERT LEE LONG Community Editor Published: Saturday, August 23, 2014 1:05 AM CDT SOUTHAVEN — There will be no tax increase in Southaven, that citys administrator and chief financial officer said Friday, blunting a growing firestorm of controversy that had erupted since city leaders first floated the idea of up to a four-mill increase. However, city residents garbage rates will rise $12 to offset dedicated millage that is being moved to cover general fund expenses. Coupled with the fact that six mills on the property tax rate was being moved from funding sanitation to cover costs of the general fund budget, taxpayers were, in actuality, looking at a possible 10-mill increase. That will not happen, Southaven CAO Chris Wilson said in an interview Friday. Wilson said there were estimates of at least 1,000 residents possibly showing up this Tuesday night to protest an increase in taxes. That meeting set for 6 p.m. at Southaven City Hall. While that was a possibility, Wilson was quick to say the board never decided in an iron-clad fashion to raise taxes. Wilson said the board was following state statute in advertising for an increase on the city property tax rate of up to four mills but the tax rate will remain the same at 43.73 mills. The rub lies in the fact that while property taxes will not rise, city residents and those using the citys sanitation services will see a $12 increase. Due to recent reassessment of property values, 4 mills no longer covers the cost of our sanitation fund, Wilson said. The six mills is coming off sanitation and is being re-incorporated into our general fund to cover several things, including four new cops, two new firemen, $1 million in street improvements, three new code enforcement officers, two dispatchers, one records clerk for the police department, and increased right-of-way to allow for proper maintenance. The sanitation fund is being moved to the general fund to pay for all these new initiatives. That six mills for sanitation or garbage service was put in place in 2001. Currently, residents are paying zero extra for garbage service because the costs to cover sanitation expenses were structured as part of residents property taxes. Every other city charges residents, Wilson said. Wilson said the 2014-15 budget has proved to be one of the most challenging, according to Wilson. There has been lots of discussion about this, Wilson said. When they were doing the reassessment, property values went down and four mills was worth less than it once was, but our sanitation costs were constant. In a nutshell, residents can now expect to pay an extra $12 for sanitation but their property taxes, per se, will stay the same. It is a cost increase, Wilson said. The $12 will come on their water bill and if they arent a municipal water customer, they will get a bill from the sanitation department. Additionally, the City of Southaven is poised to consider departmental budget reductions and is looking at changing the citys healthcare provider. Robert Lee Long: rlong@desototimestribune or at 662-429-6397, Ext. 252
Posted on: Tue, 26 Aug 2014 03:03:37 +0000
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