No tax hike in budget

Published 10:49 am Friday, June 17, 2016

Town residents and business owners won’t see any tax or fee increases during the next fiscal year, which begins on July 1.

The Farmville Town Council unanimously approved the fiscal year 2016-17 budget during its monthly meeting last week.

The $26.4 million budget includes anticipated grant money for projects, including the South Main Street Improvement Project, street paving, a master plan study for the town’s maintenance shop, and airport improvements.

“Everything’s the same,” Spates said of tax rates and fees.

The upcoming budget is about $9.5 million more than this year’s budget, in part because the town now accounts for anticipated federal grants for projects.

“We’re not going to get all those grants,” Spates said, “but it’s easier instead of having to, each time you get a grant, you’ve got to advertise and amend the budget. This way, we’ve got it in there. It just makes it a lot easier.”

There were no speakers at a budget hearing on June 1.

According to the town, the budget includes the general fund, water and sewer fund, transportation fund, street maintenance fund and airport fund.

“The general fund pays for all the town services except those provided by the water and sewer system,” town documents stated.

The town’s real estate tax rate will remain 12 cents per $100 of assessed value. Spates said property taxes collectively bring in a small portion of the town’s revenue.

According to the budget, the revenue on personal property tax is projected to be about $212,000, while the real estate tax revenues average about $615,000 per year.

The budget includes a business personal property tax of $1.50 per $100 of assessed value and a 27-cent-per-pack cigarette tax. The cigarette tax could bring about $220,000 in revenue, according to the budget.

Spates said most of the town’s money comes from other sources, such as the meals tax and sewer, water and lodging fees.

The meals tax is slated to bring in over $2.4 million, according to the budget.