STARKVILLE – Despite citizens’ concerns, the board of aldermen narrowly passed a tax increase and new budget for Fiscal Year 2026 during its regular monthly meeting Tuesday at City Hall.
The board voted 4-3 in approval of a 2-mill increase to generate about $665,400 for the city. This increase will raise the city’s tax rate 6.25% to 34 mills.
A mill is a unit used to measure property taxes. The 2-mill increase will raise a homeowner’s taxes $20 per every $100,000 of value and the taxes for a commercial property by $30 per every $100,000 of value.
A major share of the new spending goes to employee pay. The budget includes about $299,000 for targeted employee raises, focusing on employees earning below 95% of market averages, as well as hard-to-fill roles like police, fire and engineering positions.
The city’s minimum wage will also rise from $16.75 an hour to $17.50, which will affect about 20 employees in City Hall, Ward 2 Alderwoman and budget chair Sandra Sistrunk said.
Closing the gap
The city initially faced a $1.3 million shortfall in revenue projected for FY 2026, which begins Oct. 1. A preliminary budget required a 2.36-mill increase, which would have generated about $781,367.
The city must also pay $100,000 toward a Federal Aviation Administration grant commitment made under previous city leadership in 2015, which pushed the projected shortfall even higher, Sistrunk said.
After accounting for $20,000 of that obligation already paid, $80,000 remains due next year, Mayor Lynn Spruill said in Friday’s work session. Estimated increased parking revenue will offset some costs, leaving about an $841,367 gap which called for an even higher 2.53-mill increase.
To hold the rate at 2 mills, Sistrunk proposed the board trim three budgeted items.
Sistrunk suggested the board delay salary increases until the first pay period in January, saving about $99,000 (0.3 mills). Starkville Police Department’s 25 security cameras were reduced down to 15, saving about $50,000 (0.15 mills). The city’s contingency budget, which is used for unbudgeted costs like sudden repairs, was reduced by $27,000, from $100,000 to about $73,000, (0.08 mills).
Though the motion passed, resident Kelly Prather voiced opposition, speaking for about 15 attendees who raised their hands against the millage increase.
Prather urged the board to find more cuts rather than raising taxes.
“You have to try and find a way,” Prather said. “Where can you make those cuts to get us to 2027, so that you don’t increase the millage? Look at the same time (and) find a way to support our police and fire departments. … There’s certain places that we can make some cuts to keep the city going in the right direction.”
Mayor Lynn Spruill said the increase was unavoidable.
“There is not a soul up here that wants to raise taxes,” Spruill said. “I guarantee that is not a desire of ours. … The budget is what the board prioritizes. It’s what’s important to your community. … We’re not out here padding the budget just for the fun of it. We’re trying to provide you the services that we think are important.”
In other business, the board:
■ approved the city’s audit report for Fiscal Year 2024, which listed no deficiencies; and
■ approved renaming a street in Clark Grove Phase 2 from Calico Court to Chris Taylor Court, honoring the late Christopher Taylor, former president of the Oktibbeha County NAACP.
You can help your community
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.
You can help your community
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.
