Budget staff outlines general fund plan; aldermen signal support to equalize property tax rate

Miss Holden, budget staff, presented the proposed general fund budget to the Budget and Finance Committee at a meeting on a date not specified, outlining a city administrator package that includes a 4.5% cost‑of‑living increase for employees, a series of position‑and‑title changes, and operational costs tied to two new buildings: a police headquarters opening in spring and Fire Station 4 opening in the fall.

The proposal shows a baseline deficit in the city administrator request column but staff estimated the actual year‑end deficit will be smaller than the budgeted figure. "Right now the budget is sitting at a deficit of almost $6,000,000 but I don't expect us actual wise to end $6,000,000 I think it's going to be more around that $3,000,000 zone," Miss Holden said.

The budget document given to aldermen included three columns: current fiscal year totals for reference, department head requested amounts, and the city administrator proposed numbers. Holden said department heads submitted leaner requests after guidance that revenue will be tight; city administration proposed about $1.6 million in additional cuts relative to department requests. The administrator column also includes an across‑the‑board 4.5% COLA (no merit component), and a separate attachment lists 34 changes to authorized staffing (title changes, reclassifications and a handful of new or shifted FTEs).

Nut graf: The committee's questions centered on affordability and options to close the remaining deficit. Staff said final property valuation numbers from the county assessor could materially change revenue projections; staff and several aldermen discussed using the statutory equalization process to restore the city property tax rate to parity with Murray County to produce additional revenue instead of immediate program cuts.

Aldermen and staff discussed the mechanics and timing of equalization. Mr. Allen, city staff, explained the two‑step process: a reassessment will likely increase appraised values and by state law the nominal tax rate is adjusted downward (equalized) so tax collections remain comparable, after which the board may set the post‑equalization rate at its discretion. "So basically there's two components to the property tax calculation... If this goes up, you have to bring this down to equalize it out, and then what you do after that is at your discretion," Mr. Allen said.

Holden offered a rough estimate that restoring the city rate to match Murray County could generate about $3.4 million, subject to final assessor figures. Several aldermen—Matt Fitter, Linville, Murray and the alderman‑elect Davis—indicated they were comfortable with guidance to hold the rate at the current level through equalization or to consider restoring it to parity with Murray after the reassessment. Holden said she would wait for final Williamson County numbers before recommending final changes.

Other notable elements in the administrator proposal: janitorial and utilities to operate the new police headquarters, seven firefighters and three captains budgeted for Station 4 (10 positions total), requests for janitorial positions tied to the new building, and cuts to several police and public works personnel requests that were judged unaffordable in this cycle. Holden summarized: "If you're looking for direction tonight, for myself at least, these do not feel like wants. These feel like needs. But I would, like to know where those property assessment numbers land, before we, make any adjustments here, with the intention of, addressing these needs." (source: Miss Holden)

Votes at a glance: The committee elected Alderman Matt Fitter to chair this meeting by voice vote at the outset; the motion passed by voice; members present voted in favor.

Ending: Staff outlined the remainder of the budget schedule: a utilities session (water/sewer/sanitation/stormwater) scheduled next, followed by capital discussion, with first and second readings of the budget ordinance planned for subsequent Board of Mayor and Aldermen meetings in May pending final assessor data and comptroller review.