Greenville City Council has adopted a new city budget and a property tax rate slightly below the city's no-new-revenue rate, following a lengthy discussion over how much the city should spend now on equipment and infrastructure needs.
Council members approved a rate of $0.576 per $100 of taxable value for the fiscal year beginning Oct. 1. Greenville's no-new-revenue rate is $0.576934.
The distinction does not necessarily mean an individual homeowner's city tax bill will decrease. City staff used the median-value Greenville home as an example, calculating that its city property tax would increase from $1,144.49 to $1,155.96, a difference of $11.47 per year.
Much of the council's discussion came before the formal budget vote, as members considered a list of capital requests that had not been included in the proposed spending plan.
Mayor Jerry Ransom questioned whether some projects that the city knows it will eventually need could be completed now rather than at potentially higher prices in future years.
That prompted a broader discussion about Greenville's reserves. The city's general fund is expected to finish at about 16% under the new budget, near the lower end of its policy range of 15% to 25%. City staff told council that maintaining cash reserves can help the city's credit position and borrowing costs while also leaving money available for unexpected needs.
Council ultimately left most of the unfunded capital requests for another year.
One exception was $35,000 to replace police body armor nearing the end of its recommended service life. Council found the money by reducing planned pay-as-you-go drainage spending rather than increasing the proposed tax rate or drawing additional money from reserves. The budget retains $215,000 for drainage improvements.
Other pressures remain in the new fiscal year. Greenville is budgeting sales tax revenue essentially flat, while new taxable property value declined from the previous year. Water and wastewater customers are also expected to see a combined rate increase of about 7.8%.
Meanwhile, the city plans to add an approximately $2.2 million replacement of an aging Park Street water line to its water and wastewater capital program. Staff told council the existing line may be 60 to 70 years old, or possibly older.
Council approved the budget and tax rate unanimously.
Listen above: KETR's Jerrod Knight reports on the budget debate, including council members' discussion of capital spending, city reserves, the no-new-revenue rate and the decision to fund replacement police body armor.
