McMinnville city government is entering a decade without a property tax increase.
The Board of Mayor and Aldermen gave initial approval for the consolidated budget for fiscal year 2021-22 and a property tax rate of $1.84 on Tuesday night.
“This is the 10th year without a property tax increase,” said Finance Committee chair Alderman Everett Brock.
July 1, 2021 the city began its year with $4.97 million in the general fund. Its projected ending fund balance for June 30, 2022 is $3.79 million.
“Those numbers are a little bit deceiving because we did get a $3.8 million grant from the feds,” said Brock. “We get $1.8 million of that soon, but we are not sure exactly when. There’s a lot of ways that we can use that money to pay for things that would normally come out of the general fund or maybe some of the enterprise funds.”
The first $1.8 million was not included in the 2021-22 budget. When received, those monies will be placed into a restricted account and used based on the guidelines provided.
Brock said he feels confident the city can begin fiscal year 2022-23 with $5 million, not the projected $3.79 million, if the grant funds are utilized appropriately and the departments continue to spend conservatively and return 5 to 7% of their budgets at the end of the year.
The last property tax increase was 19 cents in fiscal year 2011-12. Since that time, the $2.09 rate has been reduced due to reappraisals by the state. It was adjusted to $2.08 in fiscal year 2016-17 and decreased again in 2020-21 by 23 cents to the current rate.
McMinnville Board of Mayor and Aldermen unanimously approved both the annual budget and property tax rate. Being an ordinance, a second consideration is required.