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City begins budget prep
for new fiscal year
Published Wednesday, August 12
By Jebb Johnston
Staff Writer
As the city begins to put together numbers for its fiscal 2010 budget, the Corinth Board of Mayor and Aldermen informally agreed Tuesday that an ad valorem tax increase is not part of the equation this year. The board is, however, facing some challenges as it gets to work on the new budget, including a hefty health insurance cost increase, almost $1 million in matching fund obligations and the expectation that flat sales tax growth is the best the city can hope for in the coming year with the current economic climate.
Aldermen are beginning to study the various department requests and will receive the remaining agency requests next week. The board convened for a special meeting Tuesday to set this year's budget planning in motion.
Sales tax revenue comprises the majority of the city's operating funds. "I don't see how we can project growth in sales tax this year," City Clerk Vickie Roach told the board.
For fiscal 2009, sales tax is currently 1 percent behind fiscal 2008 levels.. The clerk also does not anticipate an increase in assessed property value. The city needs to provide $990,000 in matching funds for various projects in the coming year while facing a $209,000 increase in health insurance costs.
It's also uncertain if the city will see any financial assistance in the widening of Droke Road to three lanes for the new elementary school. The Corinth School District will request no change to its ad valorem tax levy within the city. Trustees are set to finalize the school district's budget this week.
Roach noted that the city entered the recession in sound financial condition and has been able to weather the difficult conditions, but the recession will take its toll on city finances if it drags on for two or three more years, she said.
In other business, the board heard a presentation from Trinity Capital Investors, which proposes to manage the cash reserve portfolio of the city.
