|Rives raises its tax rate |
|Posted: Tuesday, June 26, 2012 9:10 pm |
By KEVIN BOWDEN
Rives has become the first city in Obion County to approve a 2012-13 city budget.
The Rives mayor and board of aldermen met in called session Monday night and unanimously approved the final reading of the new spending plan. The meeting lasted a mere 13 minutes.
The board approved the first reading of the budget at a called meeting last week. The board granted final approval of the 2012-13 budget even though the new fiscal year doesn’t start until July 1. Most of the figures in the budget are estimates based on the city’s 2011-12 budget.
Under the new city budget, the property tax rate for Rives residents will increase from $1.83 to $2 per $100 of assessed valuation. The 17-cent increase was necessary in order to balance the budget.
The new $2 property tax rate is expected to generate $24,000 in tax revenues for the city, the same amount as was projected for the city’s current 2011-12 budget using the $1.83 tax rate, according to city recorder LaVonda Humphries. She explained Rives has an ongoing problem with residents not paying their property taxes.
Using the $1.83 property tax rate the city had expected to collect $24,000 in property tax revenues this current fiscal year, but only collected about $19,000. By increasing the property tax rate, the board hopes to reach its $24,000 in projected revenues.
Rives’ new city budget also estimates about $26,000 in state and federal tax revenues.
The budget covers five pages and contains spreadsheets for the General Fund, Rives Volunteer Fire Department, State Street Aid and Sewer Department accounts.
Staff Reporter Kevin Bowden may be contacted by email at email@example.com.
Published in The Messenger 6.26.12