A month after being hit with a 28-cent property tax increase from Warren County government, city residents could be hit with an additional 13 cents from McMinnville government.
“I’ll just throw it out there,” said Alderman Everett Brock. “I’m looking at 25 cents. I hate to do it.”
That comment came Thursday night when the city’s Finance Committee met to consider its property tax rate recommendation to the full Board of Mayor and Aldermen.
Currently, the tax rate is $2.0804. The last tax increase was 19 cents eight years ago for fiscal year 2011-12.
Alderman Steve Harvey voiced a desire to wait a year and see what happens with the cuts.
“I’m not convinced at this point that we need a tax increase,” said Harvey. “This is the first year that we’ve really made a serious attempt to cut back and get closer to evening out. I’d like to give it a chance. We haven’t even tried yet. Not really.”
The Finance Committee has recommended $900,000 in cuts to the proposed budget for fiscal year 2019-20 to bring the projected ending fund balance from $1.7 million to $2.6 million. That recommendation requires board approval.
The proposed increase of 25 cents would generate an additional $500,000 and increase the projected ending fund balance to $3.1 million.
“I’m trying to be as conservative as I can,” said Brock. “I don’t want to reach the point where we tax our taxpayers needlessly. I really don’t, but I can see this being a problem. I really can.”
Alderman Ryle Chastain suggested a lesser number as a compromise, such as 12.5 cents.
“Round it up,” said Brock. “Don’t do a half. I’m supportive of that. I’d rather go bigger though.”
Committee members voted 2-1 for a 13-cent property tax increase. Brock and Chastain voted in favor, while Harvey voted against.
The proposed property tax increase, if approved by the full Board of Mayor and Aldermen, would bring the tax rate to $2.2104. Thirteen cents generates $260,000 in revenue.