Tempers flared in Magnolia Monday over the possibility of a tax increase.
The city’s proposed $2,106,909 budget projects a 3-mill increase, from 32 mills to 35. That increase would raise taxes on a $100,000 house by $30 per year.
Mayor Anthony Witherspoon said this is the first tax hike proposed by the city since Jim Storer was mayor, and that’s been several years.
“Dr. Storer was a smart business man like me,” Witherspoon said. “He understood that to run a city you have to raise millage. We can’t be in the same spot forever. If the world is moving forward and you’re standing still, then you’re moving backwards.”
He said the city has an assessed value of $24 million.
“At 35 mills, that’s $78,000 to be spread over 920 structures,” he said. “Our industries — Sanderson Farms, Croft, International Paper — are paying the bulk of that, so it’s really $45,000 to be spread over the city.
“Broken down, you’re paying $4 extra dollars a month.”
Officials noted that the city has some $248,000 outstanding in fees to collect, and aldermen can adjust the budget in October, after the city is expected to receive the money.
Witherspoon said the millage increase would help with projects in the city, including a new park on Quinilivan Road, farmer’s market pavilion and the repaving of nine streets.
The city is borrowing $1.3 million, a large chunk of which will go to repaving streets.
Not all city officials are pleased with the prospect of a tax hike.
Alderwoman Mercedes Ricks questioned why the city couldn’t cut the police department’s budget instead.
The department, already expecting a $41,645 cut, has one of the biggest budgets in the city of 2,700 residents, operating with $551,600. The bulk of that goes to salaries and benefits. The department pays $236,000 in full-time salaries and $69,000 in part-time salaries.
However, Witherspoon said the department also has the biggest surplus, with $117,000 remaining from its current budget, which expires Sept. 30.
Alderman Joe Cornacchione noted that the department has seen a 10 percent funding increase since 2011.
Ricks said the police department is capable of earning its own revenue.
“No, they’re not a revenue department, Mercedes,” Witherspoon said.
“Yes they are, mayor. If not, then where does the money for tickets go?” Ricks said.
“Half of it goes to the courts and the other half goes to the state,” Witherspoon said.
Witherspoon noted that since he came into office, city court has doubled its revenue.
“For the first time, they have the money to pay for their own salaries and we don’t have to take it out of the general fund,” he said.
Some aldermen questioned whether the tax increase was even necessary.
Cornacchione adamantly opposed an increase.
In the middle of the board’s debate on whether to cut the police department’s budget, resident Dr. Elaine Coney interjected.
“I don’t think it’s necessary,” she said of the tax hike. “I’ve looked over your budget and I can see where you can cut more.”
Coney told the board they could trim more fat by cutting some of the salaries, to which Witherspoon said no.
Things escalated when Coney explained her property was assessed at $900 and if the city raised millage, it would raise to $1,000 if not this year, then next.
“I will be paying $100 in taxes and I’m not paying that,” Coney said.
“That’s not true. Someone gave you some bad math,” Witherspoon said. “There’s no way you would pay that much.”
“Yes, it is,” Coney fired back.
This led to an exchange of raised voices, with Coney leaving.
Turning back to the discussion of millage, Cornacchione said, “If I was mayor, I would never raise the millage.”
“Well, if you never raise it how do you suppose we run the city? What would you do?” Witherspoon asked.
“Cut the budget,” Cornacchione said.
“I have cut the budget! I’m the most budget-cutting-est mayor,” Witherspoon said.
He asked Police Chief Ray Reynolds about his finances since Witherspoon took office.
“Chief, your budget hasn’t went up under me, has it?” Witherspoon said.
“No, it hasn’t,” Reynolds said.
“It’s decreased under me,” Witherspoon said. “Even the smallest budget in the city, the fire department, saw a cut. So, what do you want me to do, Joe? You want us to run a city or not? The budget isn’t even cut like I wanted it cut.”
Ricks and Cornacchione suggested either paving fewer streets or not paving them at all.
“If you don’t have it, then don’t spend it,” Cornacchione said.
That idea upset Alderwoman Becky Magee, who said she’s sick of having to repair her cars because of potholes.
“I love Magnolia. I’ve been here for 64 years. I love it so much, I left and came back,” she said. “We need our roads fixed. Y’all don’t want roads, y’all don’t want an increase, y’all don’t want a park, y’all don’t want a pavilion. What do y’all want?”
Witherspoon said he’s been transparent with his board.
“Before I came into office, this board didn’t even get a consent agenda. They didn’t even know how much they had to spend,” Witherspoon said. “I showed them the numbers so the numbers wouldn’t scare the hell out of them.”
Alderman Lonnie Cox held onto hope about the prospect of last-minute revenue coming in to stave off a tax increase.
“Did I hear you right that once our outstanding balance comes in, we may not have a millage increase?” he asked.
“Absolutely,” Witherspoon said. “We have $248,000 outstanding. Once everything comes in, we may not even need the increase.”
He also put at ease the minds of anyone who thinks Magnolia may be in financial trouble.
“And don’t let anyone tell you any different. Magnolia is fine,” Witherspoon said. “We still have millions in reserve. Why hit the reserves one time only to pave the streets when we can borrow it and keep the money in the reserve? That’s just smart business practice. If I need something, I’m not going to go to my savings account and take it, I’m going to borrow the money from the bank and pay it back.”
