After an attempt to reduce the
Crossville city property tax rate failed to receive enough votes for
passage, the city council went on to approve the third and final
reading of the city's budget and tax rate.
Councilman J. H. Graham caught some of
the council off guard when right at the start of the meeting he made
a motion to waive the rules to take up consideration of the tax rate
first at the meeting. The rule waiver was approved and Graham said
that he would like to see the tax rate dropped from the state
certified 59.05 cents down to 55 cents per $100 of assessed value.
Graham gave several reasons for the
action, including current strong sales tax collections and people who
talked to him during the election saying they wanted property tax
reductions from increases and reappraisals. Graham estimated that
the change would reduce the property tax collections by $172,000 for
the coming fiscal year or $43,000 per tax penny. Graham added that
the reduction could be funded from the city's current fund balance
expected to be some $13.5 million at the end of the current fiscal
year.
“I feel very comfortable that the
City of Crossville is in great shape as far as the fund balance in
concerned,” added Graham
Council member Pamala Harris seconded
the motion and noted that the city had a lot of expenses with
projects and capital outlay that even that amount of reduction in
revenue could create problems in the long run.
Mayor James Mayberry said he was
comfortable at the current time but added, “There are lots of
things that we want to do that we haven't even got to. Economist are
talking about potential downfalls and cyclical economy slowing down
and our biggest income to run our community is off of sales tax but
we have no control over that.”
Harris brought up the proposed special
census as a way to increase revenue as well. Graham said that the
increase in state shared taxes could cover the loss of revenue.
Discussion on capital expenditures followed that are planned for the
next year and part of the future capital spending plan.
City Council members discuss a possible property tax
reduction during a June 29 called meeting.
After a some further discussion, the
vote was called for and failed in a 2 to 2 tie. Graham and
councilman Danny Wyatt voted in favor while Harris and Mayor Mayberry
voted against. Council Scot Shanks was out of town and unable to
attend the meeting.
Councilwoman Harris proposed a smaller
reduction and moved to make the tax rate 57 cents for the coming
fiscal year but her motion did not receive a second.
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With that, Mayor Mayberry moved that
the city property tax rate be set at the state certified rate of
59.05 cents for the 2017-18 budget year. A second on the motion was
given by councilman Graham.
The motion passed with 3 aye votes and
Mr. Wyatt opposed.
Later in the meeting the council
approved the full 2017-18 fiscal year budget at a $1.9 million
deficit that will be covered out of the estimated $13.5 million fund
balance. The budget motion by Mayor Mayberry was seconded by Mr.
Wyatt and passed with four votes in favor. Council also unanimously
approved the resolution for the non-profit donations.
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