Council finance chair and mayor outline factors behind municipal tax increases

Councilwoman Norman, who identified herself as finance chairwoman, told the council and public that a large share of the municipal tax increase this year stems from higher employee health insurance costs and other mandated expenses. “The greatest portion of that tax increase went because the state mandated health benefits for our employees,” she said, adding that the city prioritized maintaining employee coverage.

Mayor Armstead described a series of state-mandated cost increases that he said the city could not control and that contributed to recent tax changes. He listed increases in pension and health benefit contributions, liability and workers’-comp insurance, and the state minimum library tax as parts of the fiscal pressure the city faced.

Residents at the meeting expressed anger at the size of the recent increase and at tax breaks the city has granted through pilot agreements for redevelopment projects. Resident John Hazer said municipal and pilot arrangements have left some long-term homeowners paying a larger share of municipal taxes. Hazer urged greater transparency about pilot agreements and property assessments.

Council members and the mayor encouraged residents who want to understand the municipal portion of their tax bills to contact the mayor’s office and to note that the full bill also includes county, school and library components that the council does not control. The mayor said the governing body controls only the municipal portion of the tax bill and reiterated that several outside mandates drove costs the city cannot directly change.

No new tax ordinance or budget adoption was taken at the meeting; council discussion explained tax drivers and urged public engagement and use of the clerk’s office or the mayor’s office for further breakdowns.