Finance and Intergovernmental Relations Committee Chair Lynn Harper introducted this portion of the meeting by indicating that there was no need for City Manager Jerry Moss to come up with a tax rate during budget development if the council had strong feeling regarding the tax rate.
To that end, she solicted members as to their views on tax rates for upcoming fiscal year.
FAIR Committee member Bobby Gupton was the first to speak. He said unequivocally that he was not in favor of a tax increase. He noted that Henderson already has the highest tax rate in its population class. He said that the council needs to “look everywhere else it can”.
Council member Lonnie Davis asked what residents would get for a tax rate increase. He indicated he might be for a tax increase, but only if it were beneficial to residents.
The current tax rate is $.67 per $100 of valuation in the City of Henderson. This rate does not include County taxes.
Moss stated that the County is one year from property revaluation. He stated that for the last five or six revaluation cycles, Vance County has routinely raised tax rates the year before the new values on property are phased in and then dropped back the subsequent year so that increased revenue can be maintained.
He noted that if the City were to adopt such a strategy, this would be the year to implement it.
Taxes based on the new valuations will be billed in August of 2008 and due in the first week of January of 2009.
Council member Bernard Alston observed that Moss proceded from the assumption that revaluation would increase values. He stated that for market purposes, values were going “the other way”.
Harper asked if tax valuation always goes with the market. Moss and Alston agreed that they usually go in the same direction.
Bill Edwards, President of the Henderson-Vance County Chamber of Commerce, who was in attendance at the meeting, said there was no assurance that the gap between valuation and market values would close.
Moss said that there would probably be an increase in the total tax base.
Harper expressed the point of view that people would view a tax increase in light of any additional benefits they might receive.
FAIR Committee member Ranger Wilkerson said that the City should not continue to cut services.
“Someone has to pay for the services,” Wilkerson said. He went on to say that the City has to pick what services it is going to offer and come up with a tax rate.
The former Fire Chief acknowledged that no one likes to pay taxes, himself included.
The tax rate discussion ended with comments regarding what should be done about the County’s poor tax collection rate. The current tax collection rate for Vance County is 96.18% for 2005 and 86.11% for 2006.
Gupton suggested that the City should express displeasure with the collection rate.
Harper was unsure of what could be done. She suggested that the question be referred to City Attorney John Zollicoffer.
Moss stated that if the City had a full-time attorney, “we could do foreclosures all day long”.
Harper replied that only the collecting agency could foreclose.
Moss indicated that the City could “help”.