A “cash poor” upcoming fiscal year means county property tax rates could increase 4.6%.
That’s the recommendation County Administrator Jay Fisher plans to bring to the board of supervisors during its budget hearing Sept. 15.
“We’ve talked to every department, whittled as much as we can whittle, and now I’ve got to go to the supervisors and say, ‘Hey, if you want this budget to work, this is what it’s going to take,’” Fisher told The Dispatch.
The recommendation will include a total increase of 2 mills – one for the general fund and one for roads.
A mill is a unit used to measure property taxes. A 2-mill increase will mean a homeowner’s taxes would increase $20 per every $100,000 of value. For commercial property owners, the increase would be $30 per $100,000 of value.
The increase should generate an additional nearly $1.8 million for the county in Fiscal Year 2026, which begins Oct. 1. With the proposed increase, the total county tax rate would rise to 45 mills.
Debt service alone is increasing by $1.8 million next year, Fisher said. The first payment of more than $700,000 is due for the CINCO Megasite – for which the county borrowed $25 million to help prepare for industrial development.
Next year’s payment on the bond for the county sportsplex west of Columbus increased by more than $1 million compared to last year – up to $1.3 million. While Fisher estimated the county’s expected withdrawal from its hospital trust fund will cover most of that payment, it could be more than $100,000 short.
Additionally, the county will pay more into the Public Employees Retirement System this year, make the first of three $233,000 annual payments to purchase the old Golden Triangle Development LINK office on Main Street in Columbus and deal with other increased departmental expenses that Fisher believes cannot be deferred.
Traditionally, Fisher said, the county has underfunded its road department through its millage and made up the gap through fee-in-lieu revenue. Industries that invest at least $60 million can get a fee-in-lieu deal that allows it to pay one-third of its total taxes for up to 10 years.
Fisher is recommending the county use more fee-in-lieu proceeds to cover debt service and levy an additional mill on the road side to help offset the loss. The additional mill for the general fund should help make up any shortfalls there.
The proposed tax increase comes despite Tax Assessor Greg Andrews’ estimate that the county will see about $2.2 million in new revenue from organic growth. That’s from $1.46 million in new fee-in-lieu money coming on the books (mostly from Aluminum Dynamics) and an increase in the mill value – the amount of taxes one mill generates – that should add $713,000 to the general fund alone.
In fact, Andrews said, just the $138.7 million of assessed value the county is adding next year exceeds the total assessed value of at least 30 Mississippi counties.
Fisher said the new revenue from that growth has been figured into his budget recommendation and it is still short.
Equipment, pay raises
Both the sheriff’s office and road department put in some hefty asks for new equipment for next year, Fisher said.
Much of those were deferred. What wasn’t, the county will finance.
“In general the county has … not financed those types of things,” he said. “We have just paid cash when we need a dump truck. … If you’re cash rich, that’s a great thing to do because you’re saving money in the long run by not paying interest. … In this particular year, we’re cash poor.”
As for raises, the county has in recent years approved across-the-board cost of living increases. Fisher is recommending doing that again but paying next year’s from $500,000-plus in interest accrued from American Rescue Plan Act funds.
“Normally don’t give raises based on one-time money because it’s a recurring cost,” Fisher said. “… In this particular case, I think it’s appropriate.”
A ‘tight two years’
Board of Supervisors President Trip Hairston said the general outlook is “very good” for county finances but added, “We’ve got a tight two years when it comes to the budget.”
The county will see older outstanding debt begin to retire in 2028, which he said should free up that money to help service newer debt like the sportsplex and CINCO.
He said investments like CINCO show the county is committed to “keeping its foot on the gas” with industrial development.
“We had an opportunity to build another (industrial) park, and we’re going to have to see that to fruition,” he said. “It will pay dividends.”
The challenges in the next two years, and beyond, however, is keeping pay at competitive levels and appropriately equipping departments.
Not doing that leads to “service erosion,” which he said is no different than deferring maintenance on a building.
“When I pay my taxes, I expect 911 to answer the phone. I expect the sheriff to arrive. I expect the fire department to show up if they need to,” Hairston said. “And I expect that I can ride on decently paved roads on my way back and forth to work.
“… When you have good economic development (offering) good paying jobs, it’s a good and bad thing from a county government standpoint,” he added. “It’s a great thing because you’ve got your per capita income above the state average. But it puts hard pressure on civil services that then cost more because you’ve got to keep good people.”
Zack Plair is the managing editor for The Dispatch.
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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 34 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
