CALEDONIA — Caledonia aldermen voted unanimously to cut the town”s property tax rate by 5.4 percent Tuesday after approving a 2010-11 budget with a large surplus.
Aldermen cut the town millage rate, which determines how much a property owner has to pay in taxes, by .4 mills, setting the new rate at 7 mills.
The decision will cost the town about $8,100, bringing annual tax revenue down to about $101,900.
Aldermen initially said the tax rate would remain the same, but with a budget surplus of $72,264 the decision was the right thing to do, said Alderman Mike Savage.
“If we can afford to fund the budget and cut the mills, that”s what we should do,” he said.
Savage made the motion to change the millage rate, which was seconded by Alderwoman Brenda Willis.
“We”re one of the few towns that can (lower its millage rate),” she said during discussion of the motion.
The decision is rare during a recession, but so is the 20 percent surplus that has resulted from careful spending and increased revenue.
The adopted budget anticipates $328,505 in total revenue, about $12,600 more than last year, with expenses of $268,900.
The additional revenue is due largely to Ola J. Pickett Park, which is expected to pull in about $15,000 in concessions, sports registration fees and sponsorships this year, said Mayor George Gerhart.
More people have also moved into the city limits, increasing revenue from property and car taxes by $5,000.
Moreover, town expenses are expected to be about $35,159 less than last year following the completion of several park improvement projects.
Expenses will increase if the county does not contribute its usual $15,000 to the town park. The funds, which can only be used for park improvements, have been threatened by the down economy.
Aldermen at the meeting also approved $1,800 to replace sewage treatment pump propellers and approved renting two portable toilets for soccer season, which begins Sept. 25 and runs through mid-November.
The subject of the community center”s current state of disrepair was also broached by Willis, who said the center needed repainting and tiling, among other repairs.
Aldermen approved the use of up to $1,000 for the facility.
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