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After Debate, City Okays Property Tax Increase On 3-2 Vote

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By Shannon McFarlin News Director

Paris, Tenn.–By a 3-2 vote, the Paris City Commission approved a 10-cent property tax increase at a special meeting Wednesday. The vote followed much debate and public comments from several members of the audience, which included former mayors, former city manager and a former commissioner. Voting yes were John Etheridge, Jackie Jones and Vickey Roberts, while Sam Tharpe and Mayor Kathy Ray voted no.

The current property tax rate is 80 cents per $100 of assessed value.

During the public comment portion of the meeting, those who spoke out against the tax increase included former City Manager Carl Holder, former Mayor John Van Dyck, former Commissioner Terry Fuller.

Holder said he has heard “no compelling reason” to raise taxes. “When you already have a healthy fund balance, why do you need an additional $300,000?”

Fuller said, “I’m here–again–to ask why we need a new tax on the citizens of Paris. With some of you, this will have no impact on at all, but I represent people at te poverty level people who are struggling. The government should never forget those people. It’s an atrocity. I’m ashamed to have served on this body.”

Van Dyck said, “I’ve never heard of raising taxes in anticipation of doing something.” He also cited the city’s healthy fund balance, noting that the city’s sales tax revenue did not even decrease during the COVID pandemic.

There was sharp disagreement among commissioners on the need for a tax increase during the June 13 meeting, with two votes necessary and which included an amendment lowering the increase from 15 cents to 10 cents before the first reading was passed, 3-1 (Vickey Roberts was absent at that session).

City Manager Kim Foster had proposed the increase which she said would get the city closer to where it needs to be to move forward with proposed new and renovated municipal buildings. Also 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.

At Wednesday’s special session, Tharpe continued his objection to the proposal, saying, “This burden on taxpayers is unnecessary.”

A motion by Tharpe to not raise taxes at all died for lack of a second.

Commissioner Etheridge said, “These points are well-taken on the health of the fund balance…but we have things that have come up” including growing space issues and investment needs at the industrial park. The fire and police departments’ space needs have changed since the municipal building was built in 1961, he said. “For example, the police department has doubled its personnel since 1961. And we do have something to do with that money. We’re not just raising taxes to save it. This is to serve the citizens better…if we were doing it just to have revenue, I wouldn’t be for it.”

Commissioner Jones noted the tax increase would generate $200,000 for the city which isn’t much more than the price tag on some equipment needs for the city. The tax increase would mean $25 more a year on property valued at $100,000″, she said.

“As we look to the future, we have so many projects on our doorstep that are needed to improve our city. The police, fire and parks departments all depend on us,” Jones said.

Commissioner Roberts agreed, noting that above all the city of Paris must be operated as a business. “I understand the ‘nos'”, she said, but the city must look ahead at its needs.

Mayor Ray said, “We’re all on the path of progress as a community” but cited the current situation with Henry County Medical Center as a reason not to approve a tax increase now. “The hospital is the county responsibility, but we’re all in this together and I don’t think we need to pass this tax increase at this point.”

In other business:

The Commission approved the 2024 proposed budget on second reading. The budget includes a 5.3 percent COLA for all employees, an increase of $200,000 for paving, the four new full-time positions, eight grant projects (including signalization downtown, replacement of Rison St. bridge, home repair/replace program, signalization and sidewalk project on Tyson/Mineral Wells, signalization and sidewalks for Royal Oak/Fairgrounds and drainage projects.

Photo: Former City Manager Carl Holder speaks in opposition to the proposed increase. (Shannon McFarlin photo).

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