Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budget topic
No spam. Unsubscribe anytime.
Southaven mayor presents FY26 budget; millage cut offsets state reassessment
Summary
City officials presented a $125.6 million proposed FY26 budget and said they will lower the city millage from 46.78 to 40.45 after a Department of Revenue reassessment raised taxable values.
Mayor (name not specified) presented the City of Southaven’s proposed fiscal year 2026 budget and a related property-tax plan, saying the city will reduce its millage rate to 40.45 to help offset a state-mandated reassessment that raised taxable values.
The proposal sets the total city budget at about $125,645,003 and a general fund of about $83,000,003, with public safety the largest share of general-fund spending. “Real property taxes must increase with the mandated assessment change to prevent budget deficits,” the mayor said.
Why it matters: the state Department of Revenue required counties to change assessment practices so property valuations move to a higher percentage of market value. In Southaven, officials said assessable values rose after the county adjusted assessments upward; the city responded by lowering its millage while still adjusting revenue projections to cover services.
Most important details: the mayor described the proposed budget as prioritizing public safety, with the police budget listed at about $27.2 million and the fire budget at about $16.0 million. The mayor also said part of the police budget shown in the general fund includes restricted, confiscated funds. He said total identified budget increases from the prior year include higher police and firefighter pay, more funds for vehicles and overtime, an additional ambulance purchase, and increases in property-casualty insurance tied to higher insured property values.
Officials illustrated the household impact with a sample homeowner. Using a home previously assessed at 54% of market value and a stated market value in the example of $360,000, the mayor said the city ad valorem portion for that property would rise from about $1,688.15 to about $2,030 — a $341.86 increase — after assessment and the city’s adjusted millage. After factoring county and school adjustments and reductions in auto ad valorem for the same taxpayer, the mayor said the net effect for that example household would be an increase of $379.64 per year, which he translated to about $31.62 per month.
Council action and next steps: the board opened a public hearing on the proposed budget, received no public comments, closed the hearing, and scheduled final budget adoption for the board meeting on Sept. 9. The board did not adopt the budget at the meeting where the proposal was presented.
Discussion points and uncertainties: board members pressed on state retirement (PERS) contribution increases and the fiscal uncertainty they create; the mayor and others said PERS city contribution rates have risen substantially and may increase again July 1 of next year. Officials also noted the city previously received a one-time Department of Revenue payback that temporarily boosted street resurfacing funding; that payback is not repeating this year and general fund resources will be used instead.
Ending: city staff and the mayor said they will monitor how the reassessment affects actual bills during the coming year and make adjustments to millage and budget planning as more data becomes available.
