Murphy residents may see slight property tax increase

    Murphy – Due to property revaluations, some town residents will see an increase in property taxes, while others will see a decrease during the 2020-21 fiscal year.
    Town officials plan to decrease the property tax rate by 4 cents for the 2020-21 fiscal year; however, the change remains above the revenue-neutral rate. The property tax rate of 42 cents per $100 of valuation has been the same since 2013.
    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, officials proposed a 2020-21 property tax rate of 38 cents per $100 of valuation that 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. No town residents spoke against the property tax rate at the public hearing regarding the budget on June 1.
    Town officials told the Cherokee Scout there are no suggestions on the table to cut additional expenses in favor of further reducing the tax rate to the revenue-neutral rate.
    Lawmakers must make their decision by July 1, when the new fiscal year budget is due to be finalized. Once the budget is established, they cannot change the tax rate mid-year. If officials move forward with the proposed rate, they could opt to reduce it in the 2021-22 fiscal year budget.
    Due to the uncertainty surrounding COVID-19, town officials have delayed all non-critical capital outlay until at least December. The proposed budget, which can be read online, reduces the town’s general fund balance by $44,790 from the amended 2019-20 budget.
    Meanwhile, the proposed utility fund balance shows an increase of $94,530 from the amended 2019-20 budget as a result of new debt service requirements, the need to address certain critical projects and the sewer emergency management services station project.
    The town’s budget proposes wage increases for water and sewer employees who obtained state certifications last fall. The increases vary from 2 to 5 percent, contingent upon the certifications obtained, annual performance evaluations and the certification’s relationship to their respective positions.
    “The cost of the increases will not surpass $20,000 annually and represents an investment into our water and sewer system,” the budget message says. “Staffing has never recovered to pre-Great Recession levels, and two part-time positions were eliminated in 2018.”
    Since Cherokee County commissioners postponed construction of an Emergency Management Services station on Peachtree Street, Murphy has postponed the sewer project that would have complemented that initiative.
    “The town should not need to dip into reserves unless an emergency occurs or the economic decline is more severe than expected,” the budget message says.