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Innis commission directs staff to model higher voter-approval tax rate as infrastructure debate continues
Summary
At a July 29 budget workshop, the Innis City Commission heard staff present corrected truth-in-taxation figures showing a voter-approval ceiling of 0.680708 and asked staff to prepare budgets both at the current 0.664 rate and the higher rate (which staff estimated could yield about $500,050) to fund streets and other infrastructure needs.
Mayor Rayburn presided over a July 29 budget workshop in which commissioners debated whether to hold the city's proposed FY2026 property tax rate at the current combined rate of 0.664 or pursue a higher voter-approval rate that staff said could rise to 0.680708 with an "unused increment" adjustment.
City Manager Carmen said staff received an updated truth-in-taxation worksheet from the appraisal district and added the unused increment to the calculations. "Based on the calculation, we could go all the way up to 0.680708," Carmen said, adding that the adjustment could "net us about right around half $1,000,000," later cited as an estimated $500,050 additional revenue.
The revenue question framed a broader debate about funding for deteriorating streets and other deferred infrastructure. Mayor Rayburn, who opened and led the session, said the city has "not been maintaining our infrastructure" and stressed the limits of stretches of declining sales-tax revenue. He urged the commission to weigh whether an increase would be necessary to address ongoing repairs and equipment needs.
Several commissioners said they were reluctant to raise taxes but saw little alternative given a falloff in sales-tax receipts. Commissioner Jones said a modest increase "would affect me as well, obviously," but called the decision necessary in light of rising material and labor costs. Commissioner Pierce said the city must prioritize needs over wants and noted staff's efforts to trim costs.
Staff identified procedural next steps required under the city charter and state truth-in-taxation rules: the commission must publish a not-to-exceed rate ahead of a public hearing and set the public hearing date on the agenda calendar. Carmen recommended an additional budget workshop between the Aug. 5 commission meeting and the Aug. 19 public hearing so commissioners could review detailed decision packages showing what the higher rate would fund.
Commissioners also discussed using a two-cent tax increase as an example of scale. Mayor Rayburn said the commission's analysis showed each penny on the rate would generate roughly $250,000 for the city budget, making a 2-cent increase roughly equivalent to the $500,000 figure staff identified.
The commission did not adopt a new tax rate at the workshop. Instead, by consensus and with direction from the dais, staff was asked to prepare two budget scenarios: one assuming the existing 0.664 combined rate, and another using the higher voter-approval ceiling (0.680708) and showing the decision packages those revenues would support, including street repair equipment and selected staffing requests. The commission scheduled an additional workshop for the decision-package review before the August public hearing and a final adoption vote at the first meeting in September.
The meeting recessed briefly for staff to correct spreadsheet errors and later reconvened to continue the discussion. The commission voted to recess and reconvene the meeting the following day to ensure full membership could participate in further deliberations.
What happens next: staff will return with the two budget scenarios and detailed decision-package costings, and the commission will set a not-to-exceed rate for public notice prior to the Aug. 19 hearing.
