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Tax levy to reduce school revenues $628K, increase property taxes 9 cents
RACHEL TOWNSEND
On Tuesday, June 27, the Dyer County Legislative Body convened to once again discuss the 2023-24 fiscal budget. The meeting was well attended by numerous citizens and school officials.
Members of the CLB present during the meeting included James “T” Bubba Cobb, Brandon Dodds, Terry McCreight, Debbie Bradshaw Hart, Dob Johnson, Kim “Peck” Peckenpaugh, Steve Moore, Mark Korn, Pam Newell, Robert Kirby, Debra Roberson, Chairman John Uitendaal, Steve Sartin, Doug Singleteary, Jimmy Hester, Bradley Gray, Hunter Jackson, Greg Vestal, and Larry Shawver.
Absent: Tonya Fuller McKeller
As discussed and voted on unanimously during the June 21 Budget Committee meeting (https://www.stategazette.com/story/3000223.html ), Budget Chairwoman Debbie Bradshaw Hart made a motion proposing a revised tax levy reflecting a 17 cent property tax increase, an 8 cent withdrawal from the Dyer County General Fund Balance ($635K), with the need to implement a $30 wheel tax.
The total tax levy reported was $2.54 per $100 of assessed property.
Noted by Bradshaw Hart during Tuesday’s meeting, the resolution passed the Budget Committee on June 21, on a motion made by Cobb and seconded by Peckenpaugh.
Before a roll call vote was made, Bradshaw Hart informed the commission that, should the vote fail, a second motion would be made “to reduce the tax increase by another 8 cents”. Bradshaw Hart said the additional 8 cent reduction to the proposed tax levy would be coming “out of school funding”, with each school system receiving 4 cents less property tax revenue than proposed in the 2.54 cent tax levy proposal, effectively lowering the property tax increase to 9 cents.
“If you vote against the 17 cent increase that is now on the table,” said Bradshaw Hart, addressing the commission. “You are actually voting to take money away from schools.”
As explained by Mike Galey of CTAS during the June 21 meeting, reducing the amount of funding the school systems received through the tax levy would not negatively impact the budgets of the school systems, but would only be reducing the excess sales tax revenue each school system is able to place back in its respective fund balance.
As the floor opened up for discussion, Vestal asked Bradshaw Hart when the second tax levy option was discussed.
“Was this discussed earlier tonight at the Budget Committee [meeting] because I’m sure I’m not the only one in here that didn’t know too much about the second option we were going to have?” questioned Vestal.
“This was brought up at the last budget meeting,” answered Cobb.
“It was mentioned that we could do the schools but we didn’t want to,” added Bradshaw Hart.
Noted by the State Gazette, the second tax levy option proposed by Bradshaw Hart during Tuesday’s CLB meeting potentially violates the Sunshine Law, as it was not specifically discussed or voted on by the Budget Committee during the June 21 meeting.
While the Budget Committee did discuss the option of reducing the tax levy revenue collected by the school systems, the option proposed during the June 21 meeting only proposed lowering the tax hike from 25 cents to 17 cents, with the need to also implement a wheel tax.
No discussion outlining a 16 cent tax reduction with the implementation of a wheel tax was recorded during the June 21 meeting.
Following Bradshaw Hart’s address, a roll call vote was taken to implement a 17 cent property tax increase, with 8 cents to be taken from the Dyer County Fund Balance.
The motion failed with only six votes in the affirmative. Commissioners who opposed the vote included Dodds, Gray, Hester, Jackson, Johnson, Kirby, Korn, Moore, Roberson, Sartin, Shawver, Singleteary, and Vestal.
A second motion was made by Cobb to approve the second tax levy option of a 9 cent property tax increase, with 8 cents to be taken from the Dyer County General Fund, and an additional 8 cents to be subtracted from the city and county school systems’ tax revenues ($389K-Dyer County; $239K-Dyersburg). The motion was seconded by McCreight.
A question posed by Dodds was the possibility of further reviewing the budget for more potential cuts. The question was answered by McCreight, who informed Dodds that the committee would not be able to come up with $600K in cuts. While not reducing the full $600K, Dodds mentioned possibly looking into cutting other items to lessen the impact, specifically mentioning the $21K in scholarship funds currently provided to Dyersburg State Community College students.
“We are taxing people to give funds for a free institution,” commented Dodds.
Cobb noted that funding was still necessary to aid DSCC students who were from low-income households.
With no further discussion, a roll call vote was made approving the 9 cent property tax increase. The motion passed with Dodds, Gray, Hester, Roberson, Shawver, and Vestal voting in opposition.
Beginning in July, the CLB will vote on the $30 wheel tax. The wheel tax must be presented and voted on during regularly held July and August CLB meetings followed by a 30-day waiting period to allow for the public to petition.
The complete video of the Dyer County Legislative Body meeting is available on the State Gazette Facebook page at https://www.facebook.com/watch/live/?ref=watch_permalink&v=495028356144303 or online at www.stategazette.com.