The Shelby County Board of Commissioners moved several fiscal year 2025 budget-related items to next week’s committee meeting amid discussions Monday of a possible tax increase and a new budget hole. Commissioner Michael Whaley asked that the property tax ordinance be moved to the June 12 meeting.
Commissioner Erika Sugarmon said she would like to “entertain” raising the property tax by 30 cents, and presented a video to the Commission.
Sugarmon did not present an amendment to the property tax ordinance, but presented various documents and played the video during the meeting. A document distributed indicated she was considering the impact of a 10-cent, 20-cent or 30-cent property tax rate increase, though she only mentioned a potential 30-cent hike during the meeting.
According to one document Sugarmon distributed, 26 cents would go towards capital improvement projects and 4 cents would go towards debt service funds. Currently, nothing is allocated through the property tax to go toward capital improvement projects.
The current property tax rate is $3.39 and Shelby County Mayor Lee Harris’ administration presented a budget without a tax increase. The mayor’s administration said previously that they are against a tax increase of any kind for this budget season.
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Sugarmon also proposed a tax increase last year during budget season.
Commissioners gave a favorable recommendation for $10.7 million in budget amendments during committee meetings on May 29. The various budget amendments, if passed, would impact the already balanced budget Harris presented to the Commission.
Commissioners Sugarmon and Edmund Ford Jr. both inquired about a tax increase during the May 29 meeting because of the added expense of the budget amendments.
Director of Budget and Fiscal Planning Michael Thompson told commissioners during the committee meeting that a 6-cent tax increase would outset the additional $10.7 million from the budget amendments.
Other budget items that were pushed to next week’s meeting include the amended capital improvement budget, amended operating budget and 10-year capital improvement plan.
Commissioner Britney Thornton also presented a substitute to her land bank reform ordinance, which, according to an estimation from the administration, would add $350,000 to the department’s budget annually. It would also require a budget amendment for the additional cost.
The ordinance was substituted during Monday’s meeting and would need to be voted on again per the permanent rules of the Commission.
Brooke Muckerman covers Shelby County Government for The Commercial Appeal. She can be reached at brooke.muckerman@commercialappeal.com and followed on X, formerly known as Twitter @BrookeMuckerman.
