News

City Council kills 3-cent tax increase; OKs bond issue

By Bill Moss, Published: May 17, 2013

The Hendersonville City Council killed a proposed 3-cent tax increase on Friday, voting instead to use reserves to balance the upcoming budget.

The council also voted to schedule a bond issue to raise money for Berkeley Park improvements, which if approved by voters would raise taxes.
Interim City Manager Lee Galloway had recommended the tax increase, which would have raised $480,000 to cover debt payment of $506,000 for the new fire station, a new fire truck and the third phase of Main Street work.
The board voted to keep two fee increases, a $2 per month hike for garbage collection and an increase the water bills by 4 cents per 1,000 gallons.
Rather than raise taxes by 3 cents per $100 valuation now, the council opted to use the fund balance and send the question to voters.
"If we do the 3 cents I don't see anyway that the bond would pass," Mayor Barbara Volk said.

Finance director Jim Rudisill said drawing down reserves would still leave the city with a fund balance of 45 percent of the general fund.