Tiebreaker vote determines tax levy

Mayor Charles Terry broke a deadlocked board vote during a Sept. 8 budget meeting to pass an ad valorem tax levy increase of nearly eight mills for the upcoming fiscal year, setting the stage for final budget adoption at the Sept. 15 regular board meeting.

State law requires Mississippi municipalities to approve their annual operating budgets no later than Sept. 15. The municipal fiscal year officially begins Oct. 1.

The approved municipal tax levy pushes the city’s rate from 39.02 mills to 46.94 mills – an increase of 7.92 mills. Under Section 21-33-45 of the Mississippi Code, the package levies 40.07 mills for the general city fund, 0.25 mills for fire protection, and 6.62 mills for police bond debt service.

Getting the measure to a vote proved to be an uphill battle.

Alderman Jim Moore made the initial motion to approve the tax levy, but the proposal died for lack of a second on two separate occasions. Following an executive session, aldermen returned to open session, where Moore once again moved to pass the levy. For a third time, the motion died without a second.

Moore then introduced the motion one final time. This time, Alderman-at-Large Dexter Shipp seconded the measure, clearing the floor for a roll call vote.

Moore and Shipp voted in favor of the levy, while Alderman Andre Jones and Alderwoman Patricia Merriweather voted against it. Alderwoman Sandra Hodges was absent. With the board deadlocked 2-2, Terry cast the deciding “aye” vote to adopt the resolution.

Board members were facing a baseline tax levy that would have required deep municipal cuts had it remained in place without an increase. Terry and City Clerk Jerrica Jones warned that keeping the rate unchanged would have forced a 50 percent cut across municipal departments, severe service rollbacks, and reductions in employee salaries.

Terry stressed that external financial consultants evaluated municipal operations and concluded current spending was already trimmed “to the bare bones.” City leaders noted the municipality continues working to offset a $2.7 million revenue void created by discontinued utility payment-in-lieu-of-taxes (PILOT) funds.

During a public hearing ahead of the legislative maneuvering, residents pressed city leaders over fiscal responsibility and rising household costs.

Alesia Evans, a local homeowner and Realtor, urged the board to exhaust spending reductions before seeking additional property tax revenue, pointing to recent utility rate spikes placing heavy burdens on residents on fixed incomes.

Grace Bond, a local business and property owner, criticized municipal spending priorities and questioned city contracts, asking officials to audit operations and demonstrate accountability before demanding more money from taxpayers.

Following the municipal action, the board voted unanimously to adopt the tax levy for the Holly Springs School District at 60.25 mills. That measure includes 49.74 mills for district maintenance, 7.36 mills for bond debt, 2.16 mills for school notes, and 0.99 of a mill for special school funds.

Combined, property owners within city limits and the school district face a total ad valorem tax rate of 107.19 mills for the upcoming fiscal year. The board took up final approval of the operating budget during its regular meeting on Tuesday, Sept. 15.