RuCo looks at property tax increase on The Murfreesboro Post

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RuCo looks at property tax increase

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By: MICHELLE WILLARD, Post Staff Writer

Posted: Wednesday, June 10, 2009 11:17 am

Rutherford County homeowners are staring another property tax increase in the face this year, thanks to sagging revenue brought on by the poor economy.

In order to balance next year’s budget, the county will need another 17.5 cents per $100 of assessed value, County Finance Director Lisa Nolen said when she broke the bad news Tuesday night at a public presentation and hearing for the fiscal year 2009-2010 tentative budget.

“This budget … is a work in progress,” Budget and Finance Committee Chairwoman Joyce Ealy said, meaning the numbers could still change depending on the state of Tennessee’s budget, which is still in the works.

The proposed increase will bring the county’s current tax rate of $2.56 to $2.735, adding $65.63 to the yearly tax bill for the average homeowner with a home valued at $150,000, Nolen said.

The county needs the extra cash to plug a more than $2.4 million hole in its $390 million budget, with shortfalls in many funds, including the general, solid waste and sanitation, and school budgets.

Broken down, the increase will add 3.5 cents for Rutherford County Schools, 4.25 cents to the county’s general fund, which includes public safety departments like the sheriff’s office and county jail, and 9.75 cents to the newly formed ambulance service’s special revenue fund.

“A vast majority is for education …” Nolen said. “General education makes up about 75 percent of our budget.”

The school board asked for a 3.7 percent budget increase over last year, mostly to fund growth, the opening of Browns Chapel Elementary School in the Blackman Community and about 70 new jobs.

In the county’s general fund, 10 jobs have been cut, only one of which is currently filled. Three jobs have been added, two Student Resource Officers and a veterinarian to perform spays and neuters at PAWS with no net increase to the budget.

The 4.25-cent tax increase for the general fund is needed mostly to fund “significant increases” in utilities, retiree health care benefits and property tax relief programs.

The county has also seen significant decreases in revenues from taxes and fees associated with growth and building.

In a savvy accounting move, Nolen has proposed setting up a special fund for the ambulance service to actually save taxpayers 2 cents on the property tax rate.

Nolen proposed the idea at the budget committee’s May 21 meeting, which will take the $10 million appropriated for the service from the general fund and place it in a special revenue fund, similar to what the solid waste department has.

It saves money because the county is required by law to have 15 percent of its general fund budget on hand at all times in a rainy day fund.

By moving $10 million into a special fund, the county reduces its rainy day requirement by $1.5 million, saving the taxpayer 2 cents on the property tax.

The fund is possible because the ambulance service receives some outside revenue from patients who use the service, but additional county money is needed to balance its budget.

Mayor Ernest Burgess likes the idea because it will give the county commission an opportunity to focus on both the ambulance service’s revenue and the expenses and give an opportunity to better evaluate it.

Michelle Willard can be contacted at 615-869-0816 or mwillard@murfreesboropost.com.

Tagged under Budget, Ernest Burgess, Joyce Ealy, Lisa Nolen, RuCo

Member Opinions:

By: Farmall on 6/10/09
We have less money, so the county should get more out of us.

By: barrettbear on 6/10/09
Before too long, we will all qualify for welfare and food stamps.

By: Macgyver on 6/10/09
I say we build 6 more schools, 40 new tennis courts, and a new shooting range! oh and don't forget last week we were told water bills will be going up as well. Does anybody believe its time to stop spending?

By: matt73557 on 6/11/09
Oh and let's screw up and lose the State Football Title Game too. We probably won't really need the 1 Million in revenue it generates. Will we?

By: qwertyuiop on 6/12/09
What else is new?