In a recent city council meeting, the council approved the budget for fiscal year 2024 with a narrow vote of 4 to 3. The budget, which includes adjustments to accommodate a sewer lateral program, was presented by Dr. Wilson and received support from Mr. Collins and others. However, the subsequent motion to increase the property tax rate to support this budget failed to pass, also by a 4 to 3 vote, due to the requirement of a supermajority of five votes for any tax rate above the no new revenue rate.
City officials clarified that if the council wished to adopt a tax rate exceeding the no new revenue rate, it would necessitate a specific motion and the support of five council members. The failure of the tax rate motion has left the council in a position where they must reconsider the budget to align it with the no new revenue rate, as the budget passed would require a higher tax rate.
Following the failed tax rate motion, the council took a brief recess before returning to discuss the next steps. Dr. Wilson moved to reopen the budget discussion, which was approved unanimously, allowing for further clarification and potential adjustments to the budget in light of the tax rate situation.
The council's next steps will be crucial as they navigate the implications of the budget approval and the failed tax rate increase, with discussions expected to continue in upcoming meetings.