City Council gets first look at budget, tax rate to stay the same

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August 15, 2012

City Council gets first look at budget, tax rate to stay the same

By BRAD KELLAR Herald-Banner Staff The Herald-Banner Wed Aug 15, 2012, 09:45 AM CDT

GREENVILLE — The Greenville City Council got its first look Tuesday at the proposed city budget for next year, a budget which keeps the current property tax rate.

“This budget does not include a pay adjustment in it,” said Finance Director Cliff Copeland, as he noted all of the cities which are used as comparisons to Greenville are planning salary increases in the coming year.

The $21.3 million budget as proposed would be funded by a property tax rate of 69.9 cents per $100 valuation, which is the same rate as in the current fiscal year and the 2010-2011 fiscal year.

Although the rate is the same it still amounts to a tax increase, as it would be above the effective tax rate of 66.39 cents per $100 valuation, which would raise the same amount of money as in the current fiscal year.

A handful of city employees would be in line for market pay adjustments or civil service step increases.

“We have 17 people that will be affected by that,” Copeland said.

The budget also includes some changes to the employee health insurance and benefits.

“We’re trying to put together a health plan in lieu of having to do increases,” Copeland said.

Figures presented during Tuesday’s meeting revealed that pay for most City of Greenville employees is in line with its comparison cities.

But City Manager Steven Alexander noted that, eventually, employee raises will have to be considered.

“This is a pay me now or pay me later type of deal,” Alexander said. “The longer you wait on pay raises, the further behind you get.”

The Council is scheduled to meet for a budget workshop next Tuesday, Aug. 21, and will formally set the proposed tax rate on Aug. 28.

The first public hearings on the budget and tax rate are set for September 11, with the second public hearing on the tax rate, if it remains higher than the effective rate, scheduled for September 18.