Cadiz City Council is considering a tax increase that will result in a much-needed four percent increase in revenue in the wake of staggered growth and a tightening city budget.
During Tuesday’s Cadiz City Council meeting, City Clerk Jack Lingenfelter told council members now is the time to begin taking the allowed tax revenue increase, following several years of just taking the compensating rate, which brings in the same tax revenue as the previous year.
click to download audioLingenfelter said no increase in revenue means there could be some cuts to city services.
click to download audioHe told the council that taking the compensating rate would do nothing to help make a dent in the city budget crisis.
Lingenfelter told the council that voting to raise the property tax rate to 43.21 cents per hundred dollars of assessed valuation will add some additional revenue to the city coffers.
After the motion to take the 4 percent revenue increase was made by councilmember Susie Hendricks, the council unanimously voted for the tax hike. Lingenfelter and City Attorney Allen Wilson told council members a public hearing will be required before the council hearing first and second readings of the proposed tax increase.
The public hearing will be held on September 25th at 5 pm, with the first reading of the ordinance to take place at the meeting. Second reading of the proposed tax rates is tentatively planned for September 26 at 6 pm, which will clear the way for Cadiz tax bills to be printed and mailed in early October.
This move comes a month after the city council voted in approval of a new $5 monthly flat “sewer user fee” that will impact more than 1,300 homeowners and businesses, and generate roughly $5,000 monthly and $60,000 annually, allowing for the city to pay for any small areas of sewer construction, repair, and/or growth.
The city also collects an additional three percent restaurant tax that goes directly to the Cadiz-Trigg County Tourist Commission, with 25% of that total funding the Cadiz-Trigg County Parks and Recreation Department.
City Council also heard discussion about a proposed nuisance ordinance that makes some changes in penalties for those who do not comply with the ordinance. Further discussion will be held at a future Cadiz City Council meeting.
