Holbrook residents will be asked to reinstate property tax in May

He explained that the tax was dropped to zero percent in 2014 when budgets were looking good, but the matter was handled incorrectly. “The intention was that if a tax was needed, the council would simply institute the tax with a Truth in Taxation hearing for the public,” said Sullvan. But after talking with the Property Oversight Tax Commission he discovered it should have been done differently. “If we had passed a tax rate of .0001 percent, the city would have been able to propose whatever tax rate we wanted to later on. However, if we want a tax rate now for the coming year, it has to go on the ballot,” he said.

The last time homeowners in the city were taxed the rate was at .2789 percent. That meant that the tax on a home valued at $100,000 was $27 per year and the tax generated a total of $70,949.

Vice Mayor Wade Carlisle proposed asking for a tax rate of .5 percent, with the actual increase for the budget to be less according to any shortfall the city may have at the time.

Sullivan said that he wasn’t too concerned about any shortfall and that he liked the idea of not having a property tax when everyone else is increasing theirs, but then admitted that the extra funds would offset other increases. “It is nice to have with minimum wage going up, and having to pay lifeguards $10 per hour it’s going to be a little hard to swallow. If we try to keep our other services low or free because we have this income, then it kind of works in favor of the public,” he said.

Councilman Richard Peterson asked if an amount was necessary at this time in order to pass the resolution.

Sullivan replied that it would be necessary for the wording on the ballot.

Councilman CJ Wischmann, expressed his concerns on the matter, saying, “We never should have gotten rid of that because it’s always hard to restart something. My concern is that we are on the verge of telling the citizens of Holbrook that we increased water $5 and increased a $1 (for water rights litigation), and now another increase.”

Despite his concerns, Wischmann then moved to approve the resolution with a .5 percent tax rate, which was seconded by Councilman Earl Kester.

Councilman Tim Dixon said he had concerns that he had never seen government take less than offered.

Both Vice Mayor Wade Carlisle and Sullivan noted that the city did.

“We need to make sure that we look at what our needs are. I’m not a big fan of taxes,” said Dixon.

“I heard Randy say we have to put a number in there or postpone the resolution for two weeks,” said Wischmann.

City Clerk Cher Reyes interjected, stating that the resolution could be approved without a rate amount until the next meeting as long as it was determined prior to creating the information pamphlets, which had to be received by the voters 35 days prior to the election.

Wischmann then said that he wanted to withdraw his motion because he felt that there should be an amount in there so that the public would have plenty of notice regarding the matter. He said he would like to have public input and put the resolution on hold until the next meeting.

Councilwoman Francie Payne said that she would not be available for the next meeting, so she wanted to state for the record that she is opposed to a reinstituting sales tax. “I’d like to find out what we have to operate with and tailor the budget according to that,” she said. “We’ve already instituted some increases and I really hate to tack another one on right now.

Peterson said that he wanted to wait to add a rate to the resolution. “I’m thinking that gives us a chance to go out and talk to the community. We already instituted some increases and hate to tag another one on,” he said.

Wischmann then made a new motion moving to add a property tax increase question to the ballot, but removed a percentage amount until it could be discussed further at the next council meeting. Councilmen Wischmann, Kester and Peterson, Mayor Bobby Tyler and Vice Mayor Carlisle voted to approve the motion, with Payne voting against it.