City council says no tax increase

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By Tia Lynn Ivey

managing editor

The Madison Mayor and City Council reviewed the proposed FY 2018 budget at last Friday’s work session, which amounts to a total of nearly $15.3 million, a $1.4 million increase from the 2017 budget. However, city officials do not expect any increase in property tax revenue and have pledged to take the rollback millage rate later this summer.

According to Karen Stapp, finance officer for the City of Madison, the bulk of the projected budget increase is due to a major water and sewage project slated for completion in FY 2018. The city is set to finish the conversion of the Northside Wastewater Treatment Plant on Hayes Street into a pumping station to send water to the Southside Plant for treatment.

“That accounts for the majority of the budget increase,” said City Manager David Nunn, who estimated the cost between $800,000-$900,000.

According to Nunn, the rest of the $1.4 million increase reflected in the budget is due a couple of equipment purchases and the usual annual cost increases of salaries, insurance and benefits.

“We do not expect taxes to increase at all,” assured Nunn.

The city also expects to collect an extra $20,000 from the Hotel/Motel Tax in FY 2018, for a total of $290,000 in Hotel/Motel Tax revenue.

“We are in pretty good shape,” said Stapp.

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