Lewisburg closer to increase

by Scott Pearson, Asst. Editor
Posted 9/3/20

A possible 15 cent property tax increase for the city of Lewisburg passed on second reading at a special called meeting on Tuesday. The resolution passed by a 3 to 2 vote and is expected to pass by the same margin on third and final reading next week...

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Lewisburg closer to increase

Posted

A possible 15 cent property tax increase for the city of Lewisburg passed on second reading at a special called meeting on Tuesday.

The resolution passed by a 3 to 2 vote and is expected to pass by the same margin on third and final reading next week.

Councilmen C.H. Harwell, Artie Allen, and Bam Haislip voted in favor, and Jerry Gordon and Joe Bradford, sworn in at the start of the meeting, opposed.

Increasing the tax rate from $1.69 per $100 of assessed value to $1.84 per $100 would increase city revenue by an estimated $420,000 annually.

For a home appaised at $100,000, the increase would represent about $37.50 per year.

The city has not seen sufficient improvement in its fund balance to operate without borrowing against future revenues, despite steep budget cuts the last two fiscal years.

Revenue losses this year due to coronavirus pandemic closures only compounded the situation.

Faced with diminishing services and an employee exodus, the council, which has avoided the idea of property tax increase for months, turned to the idea as a last resort to rebuild the city’s finances.

A referendum on increasing the local option sales tax in the city from 2.25 percent to 2.75 percent will go before voters on the Nov. 3 ballot, but the city is not optimistic of the measure passing.

If it did pass, the measure would bring approximately $1 million in additional revenue to the city.

If the measure doesn’t pass, then the city would not be able to realize additional revenue until February of 2022 at the earliest.

The main item of business during the council’s regularly scheduled work session prior to the special called meeting centered on the swearing in of the councilmen elected in August.

Bam Haislip took the oath for Ward 1, after being elected to the seat to which he was appointed after prior councilman Steve Thomas stepped down due to work commitments.

Haislip had previously been elected to the Ward 3 seat before he moved out of the ward.

Newcomer Joe Bradford took the oath for the Ward 5 seat that he won in a three-way race with incumbent Nicholas Tipper and Toby Adams.

Bradford presented two proposals upon which he campaigned to the council for consideration, including changes to or cancelation of the city’s annual Goats, Music, and More festival, held in October at Rock Creek Park.

“It’s not my goal to take away something that people enjoy,” said Bradford, although the costs of the event to the city were a concern.

Numbers available from the city from the 2011 to 2019 showed average expenses of roughly $98,000 per year versus expenses of approximately $73,000, an average loss of $25,000.

Added to those numbers is overtime pay for city employees related to the event, which averaged out to another $19,000.

He suggested the city sell or lease the operation of the festival to a private partner if there was a desire to continue the event as a way of removing the financial risk on the city,

Otherwise, he said, the ongoing losses were not justifiable.

With this year’s version already canceled due to COVID-19 issues, the council agreed that they needed to examine changes to the event over the next 12 months.

“I’d like to do what we can to bring it back but without running at a loss,” said Haislip.

He also introduced the idea of holding a monthly flea market at the city-owned old armory building as a way to generate revenue for the city and to bring shoppers into the city from other counties.

Based on his estimates of 50 vendors paying $50 per day booth rental for three days, the city could see approximately $7,500 per month in revenue to begin with, Bradford said.

The commission agreed to discuss the idea further at a future planning session.

Tribune photo by Scott Pearson

Newly elected Ward 5 Lewisburg City Councilman Joe Bradford, along with his family, takes the oath of office from Lewisburg City Recorder Pam Davis at the start of Tuesday’s council work session.