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Sylva's proposed budget lowers property tax rate

By Lynn Hotaling
Thanks to property revaluation, the town of Sylva can lower its tax rate and still collect more in ad valorem taxes next year.

Property values within the city limits have increased enough that the town's proposed tax rate of 40 cents per $100 valuation will generate some $127,000 more in revenue than the current 44-cent rate. Average values in the town of Sylva increased about 42 percent as compared with a countywide average of 58 percent, said Tommy Thompson, town administrator.

Sylva's board will hold a budget public hearing at 7 p.m. Tuesday, June 27, at Municipal Hall. A called meeting will follow for the purpose of adopting the budget. State statutes mandate that municipalities have an approved budget in place by July 1.

The town's proposed budget is based on a tax rate of 40 cents, which means that property taxes on a home valued at $100,000 would be $400 per year.

The draft budget is available for inspection at Sylva's City Hall.

The proposed $1.62 million budget is similar to the current year's budget, said Thompson. It includes a 5 percent cost-of-living raise for all town employees. The draft budget does not include funding for any new employees.

Last year's budget totaled $2.04 million, Thompson said, but included the addition during the year of $437,405 from the town's fund balance. The added funds were spent to upgrade downtown parking. Sylva officials purchased both the former Popplewell property on Railroad Avenue, used as a town parking lot for the past 35 years, and the Ritz property on Main Street. Money from the fund balance was also used to prepare and pave the former theater site.

Sylva's anticipated sources of revenue for the upcoming fiscal year include: $763,500 from ad valorem taxes; $371,000 from local option sales taxes; $89,000 from utilities franchise tax; $75,500 in Powell Bill funds; $51,500 from vehicle taxes; $35,000 from interest income; $40,000 in state sales reimbursement for lost taxes; and $11,000 from privilege licenses. Proposed funding for some of the town's main departments is as follows: administration, $189,500, down from $192,088 last year; legal, $13,200, up from $11,200 last year; police, $574,900, down from $619,790 last year; fire department, $108,500, down from $118,000 last year; and streets, $357,100, up from $373,636.

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