Article by Steve Corlew-
The Lexington Board of Aldermen approved a property tax rate increase but did not solve future budget issues.
After a lengthy discussion, the board voted 4-2, June 29th, to approve the second and final reading of the city’s general fund budget. Even with the tax increase, the city will have to dip into its reserves to fund the $14,209,264 budget.
“We are dipping into the rainy-day fund more this year with a tax increase, than we did last year without a tax increase,” Alderman Gabe Williams observed. “We will have maybe one more year to operate like we are now.”
“Even if we didn’t give a raise, we would still be short, unless we cut some meaningful things.” Williams said.
The budget shows revenues of only $10,717,238. This was the first property tax increase in about 12 years.
The current property tax rate, before equalization, is $1.23 per $100 assessment. The equalized rate, which has not been officially set, was…
For complete coverage, see the July 5th edition of The Lexington Progress.