County, towns pass new fiscal year budgets

    County and town officials have approved their respective budgets for the new fiscal year, which began July 1.
    The Town of Andrews decided to set its property tax rate at the revenue-neutral rate of 60.19 cents per $100 valuation, instead of adopting the rate previously proposed in May. The town’s police department will receive $21,734 above 2019-20 fiscal year expenditures to hire additional personnel, which officials say is much needed. The department is searching for full-time and part-time hires.
    Lawmakers appropriated $95,000 to the Andrews Public Library, with $80,000 of those funds being allocated to the Nantahala Regional Library to pay for salaries and services to operate the town’s branch. The remaining amount will be used to pay for building maintenance, repairs and utilities.
    The amount Andrews allocated to the regional library system for the 2020-21 fiscal year is about 42 percent lower than the prior fiscal year, which will result in a reduction of hours and staff at the town’s branch.
    Andrews officials expect a 25 percent decrease in sales tax revenue due to COVID-19, which equates to bout $150,000. All capital outlay that is not deemed critical and essential has been placed on hold until December.
    At the meeting to approve the budget on June 16, town aldermen approved a contract for Robert Ellison – no relation to Alderman Jonathan Ellison – to landscape Valleytown Cemetery at a pay rate of $25 per hour, with a maximum time of 60 hours per two-week period. The contract lasts for 12 months.
    The Town of Murphy decreased its property tax rate by 4 cents for the 2020-21 fiscal year; however, the change remains above the revenue-neutral rate. Due to the coronavirus pandemic, Murphy officials expect a 20 percent decrease in sales tax revenue, which equates to a loss of about $107,000.
    To offset the shortfall, town
officials set a property tax rate of 38 cents per $100 of valuation, which is 3.92 cents above the calculated revenue-neutral rate of 34.08 cents. The proposed tax rate is expected to generate an additional $110,000 in revenue, protecting the town from having to use its fund balance to pay for operational expenses.
    Due to the uncertainty surrounding COVID-19, Murphy officials delayed all non-critical capital outlay until at least December. However, the new budget allows for a wage increase for several water and sewer employees who obtained state certifications last fall. The increases vary from 2-5 percent, contingent upon the certifications obtained, annual performance evaluations and the certification’s relationship to their respective positions. Murphy council members approved the budget on June 24.
    Cherokee County commissioners averted a property tax rate increase by agreeing to postpone two projects that would have cost nearly the same amount of money projected to be lost due to the COVID-19 pandemic.
    Officials postponed renovation of the National Guard Armory on James A. Mulkey Drive, which would have cost about $385,000. They also postponed construction of an Emergency Medical Services station on Peachtree Street, which could cost about $1.6 million.
    Officials expect a 25 percent decrease in sales tax revenue due to COVID-19, which calculates to a $1.7 million shortfall. However, at a recent board meeting, county officials disclosed that the April sales tax distribution from the state is estimated to be $12,433 higher than April 2019 distribution, which is a 2 percent increase.
    In addition to critical expenditures such as four police cruisers, a detention transport vehicle, replacement of the jail plumbing system and improvements to the landfill, the county’s new fiscal budget includes a 2 percent cost of living increase for some county employees.
    The county’s property tax rate will remain at the calculated revenue-neutral tax rate of 46 cents per $100 valuation. Commissioners approved the budget June 29.
    Officials from both towns and the county caution that some residents may see an increase in their property tax bill due to the increase in property values after the recent revaluation. One person could have a tax bill increase, while another could have a tax bill decrease because the neutral rates are not based on any individual property, but rather based on the total taxable valuation of the entire town or county.