JOHN COFFELT
Editor

Members of the Coffee County Budget and Finance Committee on May 28 pitched the idea of a five or six cent property tax increase for next year’s budget.

Altogether, departmental budget requests as presented would amount to a roughly $1.9 million deficit, with a 2% raise or approximately $300,000 included for employees. This would leave a fund balance of about $9.12 million. 

The proposed 2% employee pay raise follows 5% in 2025-26 to distribute to employees at their discretion and 8.5% the year before.

Commissioner Terry Hershman cautioned that deficit budgets that dip into the fund balance for reoccurring costs are an unsustainable practice. He said a series of small tax increases over the years would cover the ever-increasing budget requests presented by the departments. 

“Two cents is not very much,” Hershman said. “If we go to six cents, that’s $1 million for the budget.”

“I don’t want to go up on taxes any more than anyone else does, but everyone keeps coming in here wanting more and more… and we are not getting any more revenue in and we’re spending more out,” Hershman said.

On a $250,000 home, a five-cent increase would add about $14 to a resident’s tax bill, according to Hershman.

“Our tax rate is going to come down. Our (rural) tax rate is currently $2.33 per $100 of your assessed value. Our new tax rate is going to be less than that,” he said.   

“We have got to look out for our future and right now, we are not doing that,” he said.

The committee chose to postpone further discussion until the Property Assessor’s office presents the commission with the new uniformed tax rate. On May 18, the Property Assessor mailed notification letters informing property owners of their reassessed property values.  

The proposed 2% employee pay raise follows 5% in 2025-26 to distribute to employees at their discretion and 8.5% the year before.