Collierville tax rate could rise as much as 20 cents
Collierville property owners can expect a tax rate increase of 20 cents in order to balance a budget with $57.1 million in projected expenditures, no raises for employees, layoffs and positions that will remain unfilled.
The Board of Mayor and Aldermen have been working with the town administration for weeks to find cuts as revenues fail to keep up with expenses. During a work session Thursday, they received a draft copy of the 2019 fiscal budget and the recommended tax increase.
The budget slashed $813,000 in operating expenses, with a proposed tax rate of $1.83 per $100 of assessed value.
Employees will not receive a raise or a one-time bonus. They also will not be required to cover the 16 percent increase in health insurance coverage.
With five workers let go and 15 positions that will not be filled, there is $1 million in personnel reductions, said James Lewellen, town administrator.
The only new hires budgeted are two school resource officers.
“Every budget for the town is less than it was last year, with a few exceptions,” Lewellen said.
One exception is the board’s budget, which he attributed to health insurance costs, he said.
“I thought it was less but it’s actually $12 higher than last year. So I’m gonna find $13 to cut,” Lewellen said.
Most of the increases were attributed to personnel as well, he said.
Vehicle registration will go from $27 to $35, an $8 increase.
There are also limited capital improvements in the proposed budget.
After a consultant’s report on diversity and inclusion in Collierville, the board agreed to reallocate $200,000 that had been planned this year for the greenline on the north side of Collierville to make improvements to Suggs Park on the town’s south side.
Those improvements include a dog park, new lighting and upgrades to a multipurpose field.
And it’s possible that land will be donated to build a cricket field near the new $97 million high school at Shelby Drive and Sycamore Road, Lewellen said.
Collierville did not raise property taxes for 2018, as did a number of Shelby County’s suburban cities.
But as budget discussions began, the town faced a $2 million deficit, the result of soft sales tax revenues and lost funds from the Hall income tax, which is being phased out by the state of Tennessee. The Hall tax brought in $1.5 million in 2017.
This tax increase won’t sustain the town budget indefinitely.
“That takes us out two years,” said Valesa Wells, the town’s budget officer.
Alderman John Worley had concerns that there was nothing in the budget for future necessities like a new fire station near the new high school, more police officers and road paving.
“So we’re getting behind the curve on some of these issues,” Worley said.
“We talked several weeks ago about all we’ve done here is kick the can down the road,” said Mayor Stan Joyner.