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Henderson presents FY25 budget options; City Manager to recommend $0.55 tax rate
Summary
City Manager Edward Blackmon and Finance Director Joey Fuqua presented the proposed FY25 budget highlighting inflation and limited tax-base growth, proposed General Fund of $25,045,795, use of $4 million in fund balance to balance the budget, and a recommended tax rate of $0.55 to provide relief while maintaining revenue.
City Manager Edward T. Blackmon and Finance Director Joey Fuqua presented Henderson’s proposed FY25 budget on May 13, outlining fiscal pressures, staffing considerations and redevelopment financing options.
Fuqua said inflation and minimal tax-base growth have constrained revenue, and presented a recommended General Fund of $25,045,795 and a total budget of $44,533,562. He said the recommended budget uses $4 million of fund balance to balance FY25. "If the tax rate was decreased to $.55, the revenue generated would be $7,700,000," Fuqua explained when illustrating revenue impacts at different tax rates; Mr. Blackmon said a $0.55 rate "will be his recommended tax rate." The minutes record the City valuation at $1,378,126,891 (discussed as an illustrative figure) and Fuqua noted the revenue-neutral rate would be $0.45.
Fuqua proposed a $1,500 one-time bonus for full-time staff and increasing the city 401(k) contribution from 1 percent, and said a comprehensive pay class study is underway with results expected after July 1. He also reported that the Kerr Lake Regional Plant Expansion Project is scheduled for completion in 2026 and that a sewer and water rate study will conclude around July 2024 to inform utility rates.
Assistant City Manager Paylor Spruill described the redevelopment strategy tied to the West End Urban Redevelopment Area (TIF district), which covers roughly 200 acres including downtown and parts east of William Street. Spruill said the TIF district valuation has increased substantially year-over-year (noted as about 149% from last year) and estimated borrowing capacity of $3–4 million; he recommended establishing a revolving credit line to acquire blighted properties (including parcels owned by the Embassy Foundation) for redevelopment, demolition or repurposing, and noted the need to reassemble the Redevelopment Commission and to partner with the Downtown Development Commission.
Council was reminded that additional details and follow-up sessions on the budget were scheduled; staff will return with the pay-study results, utility rate study conclusions and detailed MS4 implementation costs.
