Council splits over options to avoid tax rate increase
Published 4:34 pm Thursday, May 4, 2017
Washington’s City Council, during a budget work session Wednesday, voted 3-1 for an alternative that will fill the $255,000 revenue void created when it voted earlier this week to not raise the city’s property-tax rate by 3 cents per $100 valuation.
Voting for the option C were Mayor Pro Tempore Virginia Finnerty, Richard Brooks and Larry Beeman. Doug Mercer, who wanted the council to take a closer look at finding additional revenues and reducing expenses, voted in the negative. Mayor Mac Hodges and William Pitt did not attend the session.
Brooks made the motion to adopted option C. Beeman made the second for the motion.
After voting against the proposed tax increase Monday, the council instructed city staff to return to the Wednesday session with recommendations on “how to fill the void” in revenue created by the decision not to raise taxes.
Staff presented three options for the council to consider. The council chose option C, which reduces expenditure in the proposed budget by $99,381, increases revenues by $37,500 and transfers $59,060 from the electric fund to the general fund and the same amount from the city’s fund balance (rainy-day fund) to the general fund.
Option A would have transferred $255,000 from the electric fund to the general fund. Option B would have transferred $127,500 from the electric fund to the general fund and the same amount from the fund balance to the general fund.
Mercer wanted to remove option C from consideration. “The staff has taken the liberty of reviewing the budget and making reductions where they felt were appropriate. I was not given the opportunity Monday evening to make suggestions for reductions, which I had that totaled over ($400,000). I also had suggested increases in revenues of $150,000. So, I think option 3 should come off the table completely. You should go with either option 1 or option 2,” he said.
Finnerty said staff had been given Mercer’s suggestions. City Manager Bobby Roberson confirmed staff had received those suggestions.
“So for all we know, they did look over your suggestions. Personally, I think option C is most viable. It’s a nice balance, compromise,” Finnerty said.
“You have not given this council the opportunity to discuss those reductions, which the staff has decided on since Monday night, nor have we had the opportunity to discuss potential revenue increases that the staff has discussed since Monday night,” Mercer said.