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Sylva’s tax rate likely to go unchanged
By Carey King
The majority of Sylva’s leaders say they can’t lower the town’s tax rate, but a few concerned citizens aren’t buying it.
Due to recent increases in property valuations, town ad valorem tax revenue will increase to $2,262,236 in the coming fiscal year – a jump of about $250,000, or about 12.5 percent – should the tax rate go unchanged.
Taxes must stay at 45 cents per $100 valuation in order to pay for fire and police protection, garbage collection, and cost-of-living increases for town employees, Mayor Brenda Oliver told a group of residents that gathered at the town’s June 3 meeting.
The mayor’s audience disagreed, however, saying that town services aren’t up to par and they don’t want to continue paying for them.
“There’s no advantage to living in the city limits anymore,” Sam Beck told board members. “I don’t know any services the town of Sylva really offers.”
“We feel that the 45 cents would be a burden to us, and we really don’t see the services from the town,” said his wife, Doris Beck. “We seldom see a policeman where we live. We do have garbage pickup, but that’s about all we have.”
“I know the town of Sylva is furnishing police cars to drive to Cullowhee and Caney Fork,” Sam Beck said. “We’re lucky if we ever have a policeman in the city limits, and that’s a fact. We have no police protection where I live, inside the city limits, (even though) we’ve asked, asked, asked them to patrol our street.”
Other residents brought up the dilapidated state of Bryson Park and Allen Street and the town’s slow repair schedule.
“In this many years, it should have been done,” Evelyn Austin told the board. “I’ve heard this before, ‘We’re going to do it, we’re going to do it.’ Why hasn’t it been done?”
Yet Sylva officials maintain that the 45-cent rate is necessary to pay for a number of needs that aren’t immediately visible to residents.
Town Manager Richard McHargue’s top concern is the general fund balance, a pot of money he describes as Sylva’s “savings account.” Over past years, the town has depleted the fund to pay for a variety of town improvements.
“That’s like borrowing from your savings account to pay monthly expenses,” McHargue said.
The budget McHargue has proposed for the coming fiscal year – based on expected revenue from the 45-cent rate – would be the first budget in six years not to use those “savings account” dollars to balance the budget. In addition, with the 45-cent rate, the town could put $15,265 back into the account, McHargue said.
The budget proposal also includes a $40,000 repayment to the town’s UDAG fund to replace dollars used to fund renovations to the Sylva swimming pool
“We’re trying to get ahead here and take care of some of these problems,” McHargue said. “Otherwise, it’s like watching water go slowly out of a tub without ever pouring any back in.”
Several citizens argued that the recent revaluation has raised property values so high that the town could generate adequate revenue with a lower tax rate. Others said that Sylva’s recent moves to annex land near Webster and off Cope Creek Road should bring enough income to scrape by.
But board member and finance committee chairman Eldridge Painter contended that the town’s real property growth rate is only three-tenths of one percent – a stark contrast to county land “running wild with new construction everywhere.”
And since the annexation process will take more than a year, with the town having to pay for a new water line to Cope Creek, Sylva won’t see revenue from either area for years to come, Oliver said.
The town must keep its tax rate stable this year in order to avoid an increase in the next three or four, Painter said.
“At the last revaluation, we lowered it four cents. Last year, we raised it five. (Keeping the 45-cent rate) will prevent a tax increase before the next valuation in 2008,” he said.
Dropping the revenue level now could force the town to take loans out later, Painter said.
“We want to avoid borrowing money. I am dead-set against that. But we’re getting pretty close to it,” he said.
The town will hold a public hearing on the budget at 5 p.m. Monday, June 28 – just days before the July 1 budget deadline. Should the board decide to reduce the tax rate, as board members Maurice Moody and Ray Lewis have advocated, McHargue would have to hurry to get details finalized.
The public safety committee – made up of Moody and Painter – will meet with Police Chief Jeff Jamison at Town Hall on Monday, June 14, at 9 a.m. to discuss citizens’ concerns about police protection.
In other business June 3, Sylva board members:
– Approved the recently-elected officers and roster of the town’s volunteer fire department.
The officers include Mike Beck, chief; Brian Wellmon, first assistant; Chris Greene, second assistant; Mike Bryson, captain; Joel Guffey, captain; Terry Griffin, safety officer; Justin Cochran, secretary; Craig Farmer, purchasing officer; and Mike Farmer, chaplain.
An June 21 installation dinner is planned at Lovedale Baptist Church.
– Approved a contract with Mitch Crisp of Dixon Hughes (formerly Crisp Hughes Evans) to audit the town’s finances for the 2004-2005 fiscal year. The firm has done the job for several years and is familiar with town finances, McHargue said.
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