Rutherford County citizens face another property tax increase this year as the economic struggles of the past year leave county officials facing a $10.8 million shortfall between revenues and expenses.
When it was apparent the county’s anticipated taxes and expenses would not cover its costs, the county used up its rainy day fund last year and almost halvd the 17-cent tax increase it eventually passed.
Unfortunately for the county commission and all of us, the rain kept falling as the national economy suffered its worse run in decades.
Troubles in the financial sector, especially involving home financing, hammered our then robust housing industry that had pumped large increases in county taxes and fees into the budget year after year while also providing the need to expand budget expenses for new schools and services associated with growth.
The worst-case scenario occurred when economic reversals happened across almost the entire spectrum. Sales taxes dropped with consumer spending, fees dwindled as building fell precipitously and housing market declines stymied the long streak of significant increases in property appraisals due to new building.
While fewer dollars were coming into the county treasury, schools still had more students to educate, deputies had the same roads to patrol and most other services continued to face the same demand.
The historic limitations on county revenue possibilities don’t leave county officials with many options as they try to figure out how to make up the shortfall between projected revenues and expenses for the 2009-10 fiscal year.
The sales tax is maxed out as well as the wheel tax. The latter could be raised but likely with diminishing returns and would provide only limited assistance.
That leaves the county looking at another property tax increase, maybe as much as 20.5 cents, according to County Mayor Ernest Burgess’ projections.
County officials have and undoubtedly will look hard a cutting costs, but while a few antidotal examples of possible unneeded spending might be cited, the fact is the county runs pretty tight and pretty frugally.
Last year’s spending reviews cut most discretionary areas, leaving officials almost no opportunity this year without some serious reductions in services.
No one wants to pay more for anything during this economic recession, but taxpayers almost assuredly face a bigger tab for property taxes.
Still, if they check with any of their neighbors who have moved here from other states, and certainly many of them now live with us, they will realize our property taxes are so much lower than most areas it is somewhat remarkable we receive the services we do.
Another $77 in annual taxes on a house worth $150,000 is nothing to celebrate, but at about a $1.50 a week it’s worth maintaining our schools, our jails and other vital services the county provides. |
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