Mooresville's tax rate discussed, but likely to hold fast

A discussion about Mooresville’s property tax rate and possible renovations to the Charles Mack Citizen Center highlighted Saturday’s final day of the town board’s annual retreat.

Regarding Mooresville’s tax rate, commissioners discussed whether it should remain at 58 cents per $100 valuation or be reduced in the 2012-13 fiscal year budget.

With the current rate, $27.8 million is collected annually in property tax revenue. Every penny reduction in the rate would reduce revenue by $500,000. The town’s current overall budget is about $79 million.

During Saturday’s discussion, only Commissioner Rhett Dusenbury and Mayor Miles Aktins advocated a possible drop in the tax rate. The others felt it should remain the same.

“We’re sitting on a lot of money and people could use it,” said Dusenbury. “If $500,000 can be given back to the taxpayers, (that means) we can give back at least one penny (of the rate).”

Added Atkins, “We have opportunities to gain efficiencies with how we operate, and there are a lot of things we can do” to achieve that, he said.

Although a penny off the tax rate equates to just $10 for a resident with a $100,000 home, “…the gesture of dropping tax by a penny would be well received by the community,” Atkins said. “However, dropping water and sewer rates would really be a home run. That’s where we could have an impact, but we’ve been told very little on how we can change that.”

Commissioner Thurman Houston said he feels the tax rate should remain steady.

“I’m not one for dropping, and if the numbers stay the same we should leave it the same. We only put 3 cents out of every 10 cents of taxpayers’ money into the budget and if we need wiggle room we can pull it out of the fund balance if we need to.”

However, if the tax rate is dropped and the board were to dip into the fund balance of $9 million, Setzer said he is unsure how long a safe balance would remain.

Town Manager Erskine Smith noted that the current property tax rate has allowed the town to build parks, update the library and citizen center, and build sidewalk.

“We’re not hearing complaints,” added Commissioner Bobby Compton. “I do not want that to change and feel we should just leave it the same.”

As for the Charles Mack Citizen Center, the board spent 90 minutes discussing its future, rules and regulations, rental fees, and an $800,000 renovation proposal made earlier this month by local resident Debbie Hoover.

A discussion question posed to the board asked “what does the highest and best use of the facility look like?”

“It’s not broken but we have the opportunity to enhance it,” said Commissioner Lisa Qualls. “It is a huge jewel in the crown of downtown, and the staff there do a phenomenal job. Not only do we have a chance to enhance the building and economic opportunities, but it’s time to do something with core vision and it’s a unique property with different uses.”

Other suggestions from the board consisted of split fees and different rates for different users making it more affordable for citizens and cost effective on the corporate side, having better evaluations and a system in place looking at performance and priorities of the facilities needs.

“I would like to see the $800,000 listed, not the proposed fee for the consultant,” said Compton, referring to a town agenda item earlier that did not list the project’s cost, only a $25,000 consultant’s fee for Hoover.

“I want to see what it entails before we even make improvements, especially if we’re going to spend that much of the taxpayers’ money. I just don’t think the citizens are going to buy into that.”

Smith said he would bring more data and information to the board about the  proposed improvements to the Mack Center.

* Also Saturday, several town committees presented the board with individual group updates, objectives, challenges and projects they are facing or undergoing. A video of the retreat can be found on the town’s website www.ci.mooresville.nc.us early next week.