Local Taxes Expected to Increase by 1 Mill; Schools Will Have to Pay Fees

Photo by Alyssa Schnugg.

By Alyssa Schnugg
Staff writer
alyssa.schnugg@hottytoddy.com

Oxford residents will likely see a rise in their ad valorem taxes next year; however, it will be less than the Oxford Board of Aldermen first anticipated.

While working through the fiscal year 2018-2019 budget this summer, the board realized the city was falling short of funds and started to discuss the possibility of raising taxes 2 mills, which would bring in about $650,000 more in revenue.

After some cutting and pinching pennies, the board announced Tuesday they are now considering a lower 1-mill raise, which equals about a $10 a year increase per $100,000 of a home’s value that has the homestead designation. Secondary, rental or vacation homes without homestead will see a $15 annual raise per $100,000. For example, a house with a homestead designation valued at $200,000, will rise $20 per year in taxes. A secondary home valued at $200,000 will see a $30 increase.

“We have cut and removed what we can that still allows us to maintain the level of services that this city expects and deserves,” said Mayor Robyn Tannehill. “The board is committed to not raising taxes by more than 1 mill.”

No vote was taken Tuesday during the Aldermen’s regular meeting. The entire budget and millage rate will be voted on during a Sept. 13th special meeting at 11:30 a.m. at City Hall.

If approved, the city’s total millage rate will increase from 30.22 to 31.22 mills.

Part of the reasoning for the increase, Tannehill said, is due to a decrease in sales tax, largely credited to online shopping. While sales inside Mississippi garner 7-percent sales tax, items purchased online did not bring taxes into the state until a Supreme Court ruling changed that this summer. Oxford will get about $850,000 a year from online sales taxes, but that won’t happen for about four years.

Additional expenses related to annexation have also increased the city’s budget, she said.

The entire city budget shows $64 million in revenues and $103 million in expenses. That includes all departments like the electric department and water and sewer services.

Included in that total is the General Fund, which has a projected $27 million in revenues and $30 million in expenses. The General Fund is funded through tax dollars and sales tax.

The General Fund is broken down into the following categories: personnel services at 65 percent or approximately $19 million; supplies at 12 percent or approximately $3.6 million, other services at 18 percent or approximately $5.4 million, capital outlay at 4 percent or approximately $1.1 million and debt service at 2 percent or approximately $637,000.

The police department budget is $7.7 million or 25 percent of the total General Fund budget; the fire department’s budget is 18 percent or $5.6 million of the total General Fund Budget and the street maintenance budget is 12 percent or $3.6 million of the total general fund.

During the meeting Tuesday, superintendents from both Oxford and Lafayette County asked the board to consider waiving building permit fees for two new elementary schools being built, one in each district.

Tannehill said that while the board wants to support both schools with their projects, she didn’t think the board could tell Oxford citizens they were having their taxes raised, even by just 1 mill, and then waive a potential $375,000 in revenue.

No motion was made to waive the building permit fees for either school district.