By Shannon McFarlin News Director
Paris, Tenn.–Lengthy discussion of a proposed increase in the city of Paris’ property tax rate revealed sharp disagreement by commissioners over its necessity and the proposed amount.
First reading of an amended property tax rate of $0.10 was approved 3-1, with second and final reading set for a special meeting at noon June 28. That vote followed a 2-2 vote on the original proposal–a $0.15 increase. One commissioner, Vickey Roberts, was absent.
City Manager Kim Foster proposed the increase, noting that the current property tax rate is $,80 per $100 of assessed value. The proposed $0.15 increase would make the property tax rate for 2023 at $0.95, she said. Driving the proposal were the need for four new positions: downtown police officer, Human Resources Director, Stormwater Director and Sanitation/Customer Service Manager, $1.2M for paving of city streets and inflation.
Additionally, she said, the increase “would get us closer to where we need to be for the additional study we need to do” on the scope of new and renovated municipal buildings.
Commissioner Sam Tharpe disagreed with the need for the tax increase. “I believe we could balance the budget without raising the tax rate. I feel we could manage without it. We have money in surplus” Tharpe noted the local population on fixed incomes who wouldn’t be abe to afford a tax increase.
Commissioner Jackie Jones disagreed with Tharpe. “I think 15 cents is a legimiate request. We’re at the point we’re running out of people to do the jobs. Those four positions are definitely needed and we do need paving on our streets.”
The city of Paris is fortunate to have healthy sales tax revenue, Foste said, “but sales tax is tied to the economy.”
Commissioner John Etheridge also disagreed with Tharpe, noting, “We have a good fund balance now but we do have commitments to the county, such as the industrial park. I like to be conservative and I like to have cash on hand but property tax is progressive tax.
The city needs to look ahead to its future, Etheridge said. “We have not said we definitely are going to build anything, but we a definitely looking at it seriously. I’m glad we’re adding the four new positions, especially the officer downtown. But we need to look at the impact 15 cents would have on the community. If you own property appraised at $100,000 that would equal $38 a year impact.”
After meeting with County Trustee Randi French, Etheridge said, he learned about programs that are available to veterans, elderly and low income people to help with tax relief.
Tharpe said, “But I wouldn’t put that weight on fixed income people if we can prevent it. Why go up on property tax when you don’t have to.”
Jones said, “People are proud of Paris and we’ve been lagging in looking to the future and planning. We need better planning rather than waiting until the time we definitely need to do something.”
In the first vote on the proposal, Etheridge and Jones voted yes, with Tharpe and Mayor Kathy Ray voting no.
Ray said in her analysis a 10 cent increase was adequate to meet the needs. A vote on a 10 cent property tax increase (first reading) was Etheridge, Ray and Jones voting yes and Tharpe voting no.
Approved on first reading was the Fiscal Year 2024 proposed budget ordinance which calls for a 5.3 percent COLA for all employees; increase in paving budget to $1.2M; four new positions (downtown officer, Human Resources Director, Stormwate Director and Sanitation/Customer Service Manager); eight grant projects that are ongoing for downtown signalization, replacement of Rison St. bridge, home repair program, signalization and sidewalk project for Tyson/Mineral Wells, same project for Royal Oak/Fairgrounds and drainage projects. The matching funds for those would be $213,000. $1M in American Recovery spending.
In other business during the lengthy meeting:
–The commission voted to apply for federal funds from the USDA to lock in a 3.75 percent current interest rate for 40 years for potential new municipal facilities. This amount does not obligate the city in any way to use all or any of this amount.
–The meeting began with three public hearings at which no one from the public was in attendance. The commission voted unanimously on second reading to enact new regulations and fines for high weeds and grass, set new dispoal fees at the landfill and approved a rezoning request for 813 and 815 Depot St. to allow a manufactured home on each parcel for residential rental.
–A public input meeting will be held next week on a proposal for an inclusive playground and facility grant. The meeting is set for 5:30 p.m. Thursday, June 22 at City Hall. Foster said there is no more space at Eiffel Tower Park and the city is eyeing Ogburn Park for the inclusive playground.
Photo: Commissioners and Mayor Kathy Ray listen as City Manager Kim Foster discusses the proposed property tax increase. Shannon McFarlin photo.