STARKVILLE — Aldermen on Tuesday approved a 1.87-mill tax increase for the Fiscal Year 2024 budget.
By a vote of 5-2 during its regular meeting at City Hall, the board set the city’s ad valorem tax rate at 32 mills for the fiscal year that will begin Oct. 1, up from 30.13. The increase is expected to generate nearly $600,000 in new revenue from personal and real property taxes, which will cover roughly $549,000 in employee raises included in the general fund budget.
A 1.87-mill increase will cost homeowners an additional $18.70 per $100,000 of property value and business owners an extra $28.05 per $100,000 of property value.
The measure passed with no discussion, with Sandra Sistrunk of Ward 2, Jeffery Rupp of Ward 3, Hamp Beatty of Ward 5, Vice Mayor Roy A. Perkins of Ward 6 and Henry Vaughn of Ward 7 in favor. Ward 1’s Ben Carver and Ward 4’s Mike Brooks opposed.
Aldermen unanimously approved the city’s roughly $27 million budget for Fiscal Year 2024, but not before increasing its appropriation for the Starkville-Oktibbeha Public Library by $15,000.
Beatty moved to add $50,000 to the projected sales tax revenue in the city’s budget and increase the library’s operations appropriation to $290,000 — up from the $275,000 it was slated to receive. The bump would help the library cover additional Public Employees Retirement System expenditures it will incur.
Sistrunk, who serves as budget chair, was on board with the operations change, but in the interest of keeping the budget balanced with the same revenue projections, instead suggested reclassifying $15,000 from the library’s $20,000 capital improvements fund. That fund is expected to help pay for a new air conditioning unit at the Starkville branch once the current one stops working.
“If the air conditioner doesn’t survive, we’ll figure it out,” Sistrunk said. “… If the air conditioner collapses, $20,000 is not going to cover it. We’ll have to come up with more money than that.”
Rupp agreed Sistrunk’s approach was “more prudent.”
However, Beatty pressed forward, asking Sistrunk if the city would spend what was necessary if the air conditioner did collapse.
“It’s our building and our responsibility to take care of it,” she said.
Ultimately Beatty’s budget amendment passed, moving the projected sales tax revenue line item to $9.15 million. The city expects to collect close to $8.9 million this fiscal year, which ends Sept. 30.
Zack Plair is the managing editor for The Dispatch.
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