The last time the tax rate was adjusted for city residents, it actually dropped from 64 cents per $100 valuation to its current level of 61.6 cents per $100 valuation. That took place in 2005, the first year City Manager Jon Barlow orchestrated the city’s budget. It also came during a revaluation year and reflected a revenue-neutral budget.

The last city tax increase came in fiscal 2002-03, when the tax rate jumped from 60 cents to 65 cents.

In the past two years, Barlow has been able to present Roxboro City Council a balanced budget without proposing a tax increase.

This year, however, the city manager said his budget proposal for fiscal 2008-09, which begins July 1, calls for a tax increase of 2.6 cents, which would boost the tax rate back to 64 cents.

“A tax increase is not something you ever want to talk about,” Barlow said Friday morning. “Nobody likes to hear it.

“This is the fourth budget I have done, and I have never had a tax increase proposed before,” Barlow added. “Right now, though, I am looking at a two or two and a half cent increase.”

Barlow pointed out that the city’s income from property taxes has actually declined. He noted that Primary Energy, the power generating facility on Allie Clay Road, received a reduction of its property valuation of between $6 million and $7 million.

Barlow went on to say that, while the former Collins & Aikman facility on North Main Street is now occupied by Strutmasters, the equipment once used by C&A is gone.

The absence of that equipment, Barlow said, allowed Strutmasters owner Chip Lofton to receive a reduction in property valuation at the site of between $2 million and $3 million.

“Our revenues seem to be stagnant,” Barlow said. “We have had relatively little growth. Our sales tax revenue is slowing down. … Our revenues are just not keeping up with our expenditures.”

Another negative for the city, according to Barlow, is the spiraling cost of fuel.

“Our fuel costs are really going up,” Barlow said. “They are probably up 40 percent, especially on the diesel side.”

In proposing a tax increase, Barlow noted that the only new debt being taken on by the city in the coming fiscal year would be for water and sewer projects. He added that a small cost of living increase for city employees is also proposed.

Barlow said city department heads were instructed to trim their initial budget requests and had since been asked to cut even more off of their proposed lists.

“We have told them to make cuts,” Barlow said. “But, we do want to try to keep our level of service at or above where we are right now.”

Barlow did say some hope was on the horizon in 2009 when the city should get a boost from property revaluations.
In addition to a possible tax rate increase in the coming fiscal year, Barlow said, city water and sewer customers would likely see a four percent rate increase in those services as well.

“That will be nothing more than an inflationary rate adjustment,” Barlow said.

Barlow plans to make a brief budget presentation to council members during their regularly scheduled meeting on Tuesday, May 13 at 7 p.m. He said after council has a chance to look over the proposal, budget work sessions will be scheduled.