Surgoinsville approves first reading of 2024-25 budget with 13 cent property tax hike

On Monday the Surgoinsville Board of Mayor and Aldermen approved the first of two required readings of the 2024-25 fiscal year budget with a 13 cent property tax increase.

The proposed tax hike would increase Surgoinsville's property tax rate to $1.10.

Alderman Warren Bishop noted that the increase would average around $66 more each year for a $200,000 home.

The BMA is trying to quickly pass a budget to pursue a state loan to purchase property for a public works expansion. Alderman Randy Collier said the comptroller’s office informed him that if the city submits an approved budget, the town would be notified within 15 days on whether it received the loan or not.

Rising costs and reduced revenue were cited as the reasons for the tax increase.

“We hate to do it, but we’ve got to do something,” Bishop said.

Currently, the city is anticipating a fund balance decrease of $46,555 from its starting amount of $494,557 last July.

Without additional revenue the city was looked at an additional $81,000 decrease at the end of FY 2024-25; or $231,000 if Surgoinsville does not receive the loan.

“I don’t think we can make that up with taxes,” Mayor Graham said.

Every penny on the property tax rate generates $3,844.42 for the town.

The proposed 13 cent property tax increase is projected to increase revenue in 2024-25 by $49,977.

Though the board members collectively stated their disproval with a tax increase, they agreed that there not many choices left to help the budet.

“I hate to do that, but we haven’t (raised taxes) in 12, 13, 14 years,” Vice Mayor Bobby Jarnagin said.

Mayor Merrell Graham added that as the city’s all-time high was a rate of 1.20, “We’re still 10 cents away at least.”

Apart from the tax increase discussed, City Recorder Megan Gentry told the board that the only other major change in the budget so far was making Animal Control and Code Enforcement their own lines in the budget.

“It helps separates the departments more so we can keep up with spending better,” Gentry explained.

The board will give further consideration to a tax increase before the FY 2024-2025 budget is passed.

“Whatever we decide on, this is first reading of our budget," Mayor Graham said. We’ll have a process (before passing anything else). We’ll have a hearing on it at the next meeting.”

“We’ll work on it (the budget) and have it in final shape before second reading.”

In other business the BMA voted in favor of adopting the International Property Maintenance Code (IPMC) for SafeBuilt to use with code enforcement in town.

Jim Sullivan from SafeBuilt explained that IPMC was the state standard in citing violations and allowed the company to have a tool when issuing notices.

“This gives a congruent language… we can cite IPMC language and be a lot more consistent,” Sullivan explained.

“With April here, we’re going to start seeing (violations). We’re trying to get ahead of it.”