Holly Springs staff propose 4.945 millage rate; city says it would raise about $5.6 million

Holly Springs City Council held a public hearing on the proposed 2025 millage rate, during which city staff presented a plan that would set the city millage at 4.945, above the rollback rate of 3.945 and the current 4.000 rate.

City staffer Denise said the proposed 4.945 rate "would generate just over $5,600,000 in revenues," approximately $1,100,000 more than the rollback rate. She gave an example showing a non‑homesteaded property assessed at $487,500 would pay about $195 in additional city taxes under the proposed rate; the same home with a senior exemption would see an increase of about $31.04. Denise noted those calculations use the 2024 tax digest because the 2025 digest from Cherokee County was not yet available.

The presentation explained the city has relied increasingly on property tax revenue as other streams — including licenses, permits and charges for services — have declined. Staff outlined projected cost increases driving the request: a 15% rise in health care costs, 5% increases in dental and long‑term disability, an approximately 10% rise in workers' compensation and property/liability insurance, and a 15% increase in utilities. Denise told the council the city has absorbed rising costs from fund balance in prior years but can no longer maintain that practice and meet its fund balance policy.

Denise also described the city's homestead freeze exemption, noting qualifying homeowners can file with the tax assessor by April 1 to freeze net taxable value for that tax year. She reviewed the adoption and billing schedule: the millage rate must be adopted and sent to the Department of Revenue by August 30; tax bills are mailed October 20; the city budget must be approved by November 30; and tax bills are due December 20. Staff said collections in 2025 would fund 2026 operations.

The presentation included the city's expenditure breakdown, with staff reporting that 63% of the proposed budget is allocated to public safety. City staff described rising insurance and maintenance costs — including a roughly 220% rise in property and casualty insurance from 2017 through 2025 and a 130% increase in maintenance and operations over the same span — as part of the fiscal justification for the millage proposal.

No members of the public signed up to speak; the mayor and council closed the public hearing and subsequently moved to adjourn. The motion to adjourn carried in an all‑in‑favor vote recorded as 3‑0. The council is scheduled to consider adoption of the 2025 millage rate during the regular meeting referenced in the presentation.