Monday night, the Blytheville City Council's Finance and Purchasing Committee voted unanimously to recommend the full Council keep the millage rate at 4 mills, rather than adding a mill.
Last Tuesday night, the City Council tabled a resolution that would increase the property tax rate from 4 mills to 5 mills in 2013, payable in 2014. Under the proposal, the General Fund (maintenance and operations) rate would be 4.0 mills, instead of the current 3.0, while the firemen's pension and policemen's pension would remain at 0.5 mills each.
The Council wanted a better understanding of what the extra 1 mill would be used for by the city. The Council has the option of increasing the rate by 1 mill or taking the Finance Committee's recommendation. All six council members were on hand at Monday night's meeting and none really lobbied for the millage hike, which would generate an extra estimated $136,000 for the General Fund. The Council must set a millage rate by Nov. 1 or the rate would go to 0 mills, according to Councilman Tommy Abbott, chairman of the Finance Committee.
During the public comment period Monday night, three residents spoke against the proposed millage hike, and none in favor of it. Anthony Welspom claims he spoke to 600 people who are against it and believes it is inappropriate to increase millage soon after the 1-cent IRS tax ended.
Resident Gwendolyn Butler also said residents don't support a millage hike and they need to be more informed on tax increases.
Local business owner and Blytheville resident Dale Hinson added by eliminating waste, the city could easily save what the extra mill would produce.
"All I've heard is negative from people," said Abbott, who made the motion to recommend that the millage rate stay unchanged. "I understand that this would actually generate $136,000. To me, when we're looking at the kind of numbers we're looking at, it's such an insignificant number that I don't see the value of increasing it, personally. To me, when we've just come off a 1-cent sales tax, it's a very difficult thing for me to ask the people."
"Here's my real big issue: From the time I've been on here, we continue to fight this perception of not really caring sometimes about what the people are dealing with," Abbott continued. "So for me, this is a very difficult thing to consider. If it was $1 million that was going to be generated by somebody putting another $20, $30 or $40 on their taxes at the end of the year, where it would make a difference on this budget, I'd be all about it. But for me it's not worth it."
Councilman Kevin Snow said he has heard concerns that the millage hike "would not be shared by the entire population, only the property owners. If we're going to help the General Fund, it probably needs to come from everybody."
Councilman Stan Parks noted most everyone has a vehicle, which is among items on their personal taxes.
According to Parks, on a $25,000 home, a mill would increase property taxes $5. On a $50,000 home, the increase would $10, while on a $100,000 house it would be $20, he said. One could figure personal property taxes the same way.
Councilman R.L. Jones said no one has presented a plan on how the money would be used, though he acknowledged that the General Fund is struggling.
According to figures provided by Abbott, the city's budgeted expenditures, minus the now-paid IRS debt, was $16,491,213.30, while it is on pace to spend $14,671,757.91. Meanwhile, revenues are also down from the early year projections. Instead of the $17,039,600.39 budgeted, the city revenue is on pace to be $15,220,659.92, according to Abbott. Through September, revenues have totaled $11,415,494.94. Waterworks is on pace to be about $1 million short of meeting the $3.3 million budgeted revenue. According to Abbott, through September, Waterworks' revenue is $1,707,561.62, and it is on track to collect $2,276,748.83 for the year.
Still, the city is on pace to be $548,902 in the black for the year, if the revenue and expenditure figures hold true.
"The numbers look promising," Jones said.
According to Abbott, the expenditures don't include the following committed funds: $621,166.37 (general fund paying back what it borrowed from the infrastructure fund); $41,000 (2013 budgeted and arrears to the Greater Blytheville Area Chamber of Commerce); $24,000 (Main Street Blytheville); $4,000 (Mississippi County Union Mission); $2,500 (Great River Charitable Clinic); $500,000 (parks and recreation); and jail fees.
Abbott said he believes the city is getting control of its budget, something that is essential before raising millage.
"If we could get to the place to where the people saw that we were taking care of business, as we need to, and we've made strides -- I'm not knocking what we've done," Abbott said. "But if people see us doing what we need to be doing to control it, then I believe that we can come back to them a year from now and say, 'hey, we want to get that extra $136,000 and we're going to apply it to whatever.'"
The City Council can set millage up to 5 mills before taking it to the voters. According to Jones, the county is already at its maximum millage rate; any higher requires voter approval.
The Council is expected to have a special meeting next week to vote on millage.
The city's governing body is also expected to consider purchasing a $150,000 leaf vacuum truck and a bid for a new roof on the Main and Franklin fire station during the special meeting.
Monday night, the Finance Committee gave its blessing to the 2014 Freightliner self-contained leaf vacuum truck. If approved by the Council, the city would use infrastructure tax money for the purchase.
The board also selected the fire station roof bid from Roberts-McNutt of Jonesboro.
The $30,811 bid was the lowest of the four submitted. Other bids included $43,900 (Jonesboro Roofing), $54,500 (a Jackson, Tenn., firm); and 39,500 (a Sherwood, Ark., firm).
Carney recommended Roberts-McNutt's proposal, saying it was not only the lowest bid, but the best value.
He said the Duro-Last roof has a 20-year warranty.
The city is expected to use Police and Fire tax funds to pay for the new roof.
Meanwhile, the Finance and Purchasing Committee also agreed to pay for the $9,300 engine replacement of the county's 2000 Sterling trash truck, equipment Blytheville borrowed in August to help with trash collection. According to Public Works Director Marvin Crawford, the trash truck had engine problems on Sept. 18 while in the city's possession.
"Upon being examined in our maintenance shop, it was determined that due to lack of or poor maintenance, the engine of the vehicle would need to be replaced," Crawford wrote in a letter to Abbott.
Because the trash truck was in the city's possession at the time, the Finance Committee agreed to pay for the repairs.
The Finance Committee also gave the green light to pay off the remaining $18,000 on Public Works' 2009 Caterpillar backhoe, using infrastructure funds. The move eliminates a $1,450 monthly payment.
mbrasfield@blythevillecourier.com