Webster town board considers tax increase

By Rose Hooper

Webster's review of the formula, which was hammered out by a committee appointed by Sylva, Dillsboro and Webster officials, follows Sylva's request earlier this year that Webster pay $10,000 a year for contracted fire protection. In this year's budget, Webster allocated $3,500 of its total revenues ($14,075) for fire protection.

Webster town board members agreed at their Sept. 12 meeting that additional funding for fire protection would result in an increase in taxes. What they didn't decide is just how much their contribution should be or how much taxes would have to be increased to meet the request.

Board member Louise Bedford said as long as the town was considering a tax increase, the increase should be 20 cents per $100 valuation.

"I've given it a lot of thought and talked to a lot of people," Bedford said. "Our residents have told us they would like to have services, and the only way to pay for them is to increase taxes."

Costs for fire protection provided by the town of Sylva will only increase over the years, Bedford pointed out.

"To have fire protection, we need water services," she said. "Jerry King, director of Tuckaseigee Water and Sewer Authority, had an engineer do a rough estimate of costs to extend water lines and fire hydrants along Buchanan Loop. He estimated $375,000 to $450,000 for a 6-inch pipe.

"I would like to see us provide water and sewer services for the whole town," Bedford said.

By raising taxes, the town board could also provide funds for law enforcement protection, she suggested, giving as an example the Village of Forest Hills, which employs an off-duty officer three nights a week at $20 per hour.

"We also need to protect and enforce our ordinances," Bedford said. "If we cannot back up notices of violations with court action when the notices are ignored, then the ordinance are not worth the paper they are written. We owe it to our citizens to enforce our ordinances."

Board member Jean Davenport said she realized the town needed to increase taxes, but she wasn't sure that 20 cents was the amount needed.

Neither was board member Raymond Ledford. "The 20 cents would make it possible for us to do things, but we need specifics," said Ledford. "We've got to raise taxes for fire protection, I understand that. But we need something more definite on what we want to provide and exactly how much it will cost."

When Bedford's motion died for lack of a second, Gray said, "Don't disregard what Louise has proposed. Let's think about it and bring it back to the table."

Meanwhile, Gray presented the fire funding formula developed by a study committee and based on each town's ad valorem property valuation. Sylva Fire Department's annual budget averages $143,945, Gray said, and Jackson County commissioners contribute $48,390, or 36 percent, of that budget.

"That leaves the $95,555 difference to be divided among the towns (Sylva, Webster and Dillsboro)," Gray said.

Sylva's ad valorem property valuation is $195,909,704, while Dillsboro's is $21,544,117, Gray reported.

With a current tax rate of 4 cents per $100, Webster's ad valorem property valuation is $21,438,000.

"Percentage wise, that means Sylva's portion should be 82.01 percent, Dillsboro's would be 9.02 percent, while Webster's would be 8.97 percent," Gray said.

Converting those percentages to dollars, Gray said, would results in the following contributions: Sylva $78,052, Dillsboro $8,619 and Webster $8,571.

To increase Webster's contribution an additional $5,071 would require at least a 4 cent tax increase, bringing the total tax rate to 8 cents per $100. If Webster's taxes increased 4 cents, an additional $40 in taxes would be added on a house valued at $100,000.

"One of the most significant, indirect costs of providing fire service to our residents is a reduction in their homeowner insurance premiums," said Gray, who asked board members to study the proposals and figures.

"We don't have to reach a decision tonight," Gray said, "but we will have to reach one soon."

Back to Archive: 09/19/02.