In a town where low taxes are a point of pride, the Caledonia Board of Aldermen’s plan to raise property taxes for the first time in nine years was met with mild opposition during Monday’s budget hearing.
The board voted 3-1 to raise ad valorem millage by the maximum 10 percent allowed by state law to cover what Mayor Mitch Wiggins called the growing cost of utilities, insurance and other regular expenses. The budget and millage increase will be formally adopted at the board’s regular meeting on Sept. 3.
The millage will increase from 6.75 to 7.425 and add $30,000 in revenue. The value of a mill — which is the amount of taxes 1 mill will generate based on property values — will increase from $22,018 to $24,016.
Wiggins said, based on the calculations used to compute the new millage rate’s impact on taxpayers, a person with $200,000 in property with a homestead exemption would pay $38 per year in additional taxes.
A half-dozen residents questioned board members on the need for a raise, but seemed satisfied with the answer, provided primarily by alderman Matt Furnari, who was the lone alderman to advocate for a millage increase last year.
“Right now, we are at a point where, when a opportunity comes to make this town better, we just don’t have the flexibility to do that,” Furnari said. “We have the second lowest millage rate in the state. Columbus is at 47, Artesia is at 30, Crawford is 40, Starkville is 26, West Point is 27 and on and on and on. We don’t want to be at that level.
“But to run this town, to grow this town, it takes a little more money,” he added. “It is a hard thing to go to the public and say we need to raise taxes. I was a major proponent for (the tax increase). I don’t mind saying it. I felt strongly for it and I still do.”
Wiggins said the tax increase was not proposed to cover new projects or new expenses.
“I’ve been on this board for four years as an alderman and now two years as mayor, and we never had a rate increase,” he said. “During that time, the cost for electricity has gone up, the cost of fuel for our patrol cars has gone up, the cost of insurance has gone up, the cost of everything has gone up. Our budget is set to get by, to cover expenses. Eventually, to keep covering expenses we’re going to have to go up on our tax rate. That’s what’s happening here. It’s just the cost of maintaining our town.”
Tammy McCool was the lone no vote, which she said was symbolic. Alderman Quinn Parham did not attend the meeting.
“I’m not against any of this,” McCool said after the meeting. “The point I’m making is that we need to increase our sales taxes. We need to bring more businesses into some of these vacant properties we have in the town. If we did that, we wouldn’t be in the position of having to raise property taxes. That’s all I’m saying.”
Slim Smith is a columnist and feature writer for The Dispatch. His email address is [email protected].
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Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 32 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
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