The Henderson City Council had the first reading of Ordinance Number 19-09-38 adopting the 2019-2020 fiscal year budget and Ordinance number 19-09-38 levying an ad valorem tax rate increase during a special called meeting Tuesday night.
“The second reading and possible approval by the Council will take place next Tuesday night at the regular meeting (at 6 p.m. Sept.10),” said City Manager, Jay Abercrombie.
After a previous workshop, and two required public hearings with no citizen input, the Henderson City Council is now set to approve a three-cent tax rate increase per $100 property valuation and 10% increase in the water and sewer rates.
Previously the tax rate was .5217 based upon one hundred percent appraised value of all real and personal property. With the three-cent increase, the tax rate will be .5517. For citizens who are 65 and older and have their property taxes frozen will not be affected by the increased tax rate.
At a previously held budget workshop, it was recommended to impose a four or five cents increase but three of the five council members rejected it. They did, however, agree to a three cents increase.
“I’m not in favor of a four or five cents increase at all, maybe a three cents increase. Many of my constituents are on a fixed income and can’t afford it,” said Steve Higginbotham, District 5 council member.
Mayor Buzz Fullen agreed that if there had to be an increase, three cents should be the maximum.
The council also agreed to a 10% increase in water and sewer rates to help cover the cost to provide these services and a three percent merit raise for employees.