Madison County Supervisors are discussing a tax increase.
Earlier this month, supervisors viewed three scenarios each of which would increase the county’s real estate tax rate. The rate was equalized earlier this month to $0.49 following last year’s reassessment. The board advertised a possible three-cent increase which, if approved, would take the rate to $0.51 per $100 of assessed value. A penny in real estate tax generates $280,000 in revenue.
The first of the scenarios discussed would implement the full three-cent tax increase with no new debt funding until fiscal year 2027. A beginning appropriation of $3.3 million from fund balance would be needed to balance the budget. The second scenario would opt for two-cents, but have the county borrow $6 million in new debt funding which would create the need for an additional 1.5 cent increase in fiscal year 2027. A beginning appropriation of $723,000 would be needed to balance the budget. The third scenario would also include a two-cent increase, but have no new debt funding. It would require cutting an additional $300,000 in expenses from the proposed budget.
Several reductions have already been made in the proposed budget including eliminating all newly requested positions except one in parks and recreation which would move from part-time to full-time. Cuts were also made to the EMS proposals, eliminating a suggested powershift. The school capital and county capital project lists were also reduced. Overall, changes to the budget amounted to a savings of approximately $2.1 million. Still, supervisors would like to reduce it further.
The joint county and school CIP committee was scheduled to meet this week to discuss prioritizing needs. Board of supervisors Clay Jackson said the goal was to whittle down the list. He said he’d also like to see the debt funding in scenario two decrease from $6 million to $4 or 5 million.
“None of it is palatable,” Jackson said. “We’ve been doing beginning appropriations for years. If we don’t do anything this year, we will be in a potentially bad situation next year.”
County administrator Jonathon Weakley said the recent closures of Plow & Hearth and Rockhill Lumber likely equate to $100,000 of revenue the county no longer has.
“With the radio project, things are compounding,” he said. “We were doing pay as you go, but that’s running out.”
Supervisor Carty Yowell said he would be fine with a three-cent increase. However, he also suggested a combination of a real estate tax increase and a personal property tax increase. A penny increase on personal property yields approximately $157,000 in revenue.
The budget advertisement was already published and didn’t include a personal property tax increase. To do so would require a new advertisement and a new public hearing date along with it.
Supervisor Dustin Dawson suggested implementing a county business license. A small business owner himself, he said other localities already have one and Madison is missing out. He also said he favored a two-cent real estate increase with no adjustment to the personal property tax; he said he didn’t love the idea of borrowing money.
To continue their discussion on the budget, the supervisors opted to host an additional budget work session last week.
