The Livingston Board of Mayor and Aldermen voted Monday to move forward with a proposed five-cent property tax increase in the new fiscal year budget.
Finance Officer Joel Parks said the property tax increase will help with increasing personnel costs and other budget items.
“The 1,905,000 top line item property tax, that is assuming that you’re going to raise the tax rate by a nickel,” Parks said. “MTAS for years has recommended each city increase their property tax by at least a nickel per year to keep up with increasing payroll and just the things that make the city run.”
Mayor Lori Elder Burnett said the city is facing a 3.3 percent across-the-board salary increase for employees to move them to the next step on the salary survey. The mayor said the city also saw a 20 percent increase in hospital insurance costs and a rise in the state-mandated retirement match to 9.07 percent.
Parks said the five-cent increase is expected to generate nearly $80,000 in additional revenue for the general fund. Burnett said this amount would essentially cover the city’s increased contributions to the Tennessee Consolidated Retirement System.
“I’m not totally against it but I would like to look at this before,” Alderman Bill Linder said. “Well I’m going to be honest with you I think they worked hard and done a great and everything else I’m for them 100 percent, but $79,000 to the city of Livingston, $79,000 ain’t a whole lot of money, that’s the price of a new car.”
Parks said the general fund currently shows a negative change in fund balance of $25,432, though the city remains in a solid equity position. Parks said the board should consider an operating transfer of $150,000 from the debt service fund to the general fund to provide a buffer for unbudgeted expenses.
“A potential bailout if it came to that, you could pull more money from the debt service fund to general fund,” Parks said. “Right now we’re pulling out 1$50,000, that’s going to still increase by 63.”
“I know y’all work hard and everything, y’all good people, y’all lots smarter than I am, but uh just times is hard right now, and I hate to pass it on to people,” Alderman David Langford said.
Burnett said the board aims to hold the second reading and final vote on the budget around June 15.
In other business, the board also approved the second reading of an ordinance to rezone the Ray property at 235 East Volunteer Drive from C-1 to C-3. Additionally, the board passed a resolution authorizing the mayor to apply for a low-interest loan through the State Infrastructure Fund to address eight or nine city streets currently in poor condition.