Board approves budget,
tax rate on final reading
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The Collierville Board of Mayor and Aldermen unanimously approved the town budget and property tax rate Monday night for the 2010 fiscal year.
A motion to adopt the budget resolution was offered by Alderman Tom Allen and seconded by Alderman Jimmy Lott. A motion to pass the tax rate ordinance on final reading was offered by Allen and seconded by Alderman Maureen Fraser.
Town Administrator James Lewellen acknowledged the work of the staff, as well as his appreciation for the number of hours that the board members spent giving him guidance on the budget and the important town programs in a “very tough budget year.” He recalled that, after his presentation of the $58 million budget during the public hearing at the board’s May 26 meeting, he thought of “two very important points” that he should have made.
Noting that revenues were about 4 percent lower than in last year’s budget, Lewellen said the town lost approximately $2 million in the economic downturn. To address that loss, he said, expenditures were cut by $2.5 million.
“Our budget this year,” he acknowledged, “in terms of what people remember, is about 6.5 percent lower than it was last year.”
Lewellen said the administration “laid off 12 positions,” in addition to the layoffs it made in early March, to plan for what the town knew it was going to face this year.
“This budget is 19 positions lower than in FY 2009,” he noted. “That’s a challenge for the department heads to maintain the same level of quality services that people expect, while still reducing personnel expenses.”
Lewellen said he does not like the phrase “making cuts that nobody’s going to see,” because each of the town’s employees makes a contribution to the public service.
“We are going to see a visible difference in the level of services we’ll be able to provide,” he said. “But those cuts come in areas where we think we’re best capable to make up, adjust and continue to provide a reasonable level of services.”
Finance Director Jane Bevill said Collierville has received approval from the state of
“The budget was done with $1.16,” she noted. “So, we’re in good shape, as far as the revenues being conservatively budgeted for this tax rate.”
Bevill acknowledged that “the difficult part” is attempting to calculate the number of appeals that might be approved. She said the $1.18 will give Collierville $41.6 million for appeals.
During the prior re-appraisal period, Bevill recalled, the town had $29.7 million for appeals. The “successful” ones totaled $21.4 million.
A year from now, the finance director said, she will have to give the board a report on Collierville’s “recapture rate,” which will reveal how many successful appeals there have been up to that point.
“We know that there have already been $6 million in adjustments in the residential tax base,” she acknowledged. “So, that much of this appeal allowance has already been used.”
Thus far, Bevill said, only about $700,000 in commercial adjustments have been made. But she noted that the commercial taxpayers normally use the informal process instead of the formal one.
“In the last re-appraisal,” she said, “I think there were $11 million in commercial appeals. So, we expect at least half again, maybe double, what that will be.”
In response to a question by Fraser, Bevill said she thinks the deadline for informal appeals has already passed. But she noted that formal appeals can be filed up until July 31.
