It all comes down to taxes.
The city’s work with consultant Demery Grubbs will yield a five-year plan for capital improvements and funding strategies for each of the roughly 40 projects that will make the cut by the beginning of February.
But the Starkville Board of Aldermen’s reluctance to raise property taxes likely will lessen the chances most of the projects will be completed by the end of the plan.
In the current fiscal year’s budget, about $200,000 is allocated to various drainage, street and infrastructure projects. The balance could rise if current projects run under budget or additional funds are identified after the previous year’s audit is done later this month.
Vice Mayor Sandra Sistrunk said the board is unlikely go into a re-election year with tax increases proposed in the next fiscal year budget.
“But this gets things in writing and gives us a plan,” Sistrunk said.
Grubbs, of the Jackson-based firm Government Consultants Inc., has been contracted by cities Southaven, Corinth and Ocean Springs — similar in size to Starkville. Cities never finish every project in the five-year span, he said. Grant opportunities change each year, and ending fund balances fluctuate from year to year.
The majority of projects will require some funding from city sales and property taxes. Some state and federal grants will require matching funds, while less-expensive projects will be funded entirely by the city.
“We’ve tried to leverage our dollars to match state and federal dollars for things like the Louisville Street widening project and Pat Station Road extension,” said Sistrunk, who crafts this city’s budget. “It’s much easier with enterprise funds like water and electricity because those funds can operate more like a business (by raising rates).”
Another option is revenue bonding, which would require repayment from an identified revenue source, such as sewer and water rates. A project such as building a sportsplex that generates revenue or sales tax is another example. Starkville’s most recent list of 79 projects — set to be trimmed and prioritized two more times — didn’t include a project that would produce new revenue.
Sistrunk said the board’s mission is to make significant headway over the next two years.
“It’s really a question, when you look at the budget, of trying to project what your revenues are on an ongoing basis,” Sistrunk said, “and what you can fund from recurring revenue streams or what debt you want to take on. Sometimes, it’s a clear need, like a couple of years ago when the previous board issued street bonds, which were funded by a tax increase because our revenue stream didn’t cover it.
“You can use historical data and what you know about your plans and the economy, the same things a business would do in making a revenue projection,” Sistrunk added. “But it really is difficult, in any business, to make a five-year projection of what your revenues can be.”
Proposing tax increases also is unlikely after the failed bond referendum to fund a new police station, largely panned because of a 3.49 millage rate increase over the next 20 years. The city is searching for tax-neutral options to fund new municipal facilities, which have been shot down in three bond referendums in the past 12 years.
But Starkville should be encouraged by the board’s proactive approach to come to a consensus on which projects will be have the most impact on the most citizens, Grubbs said.
“There’s no guarantee you’re going to do these projects, but it gives you a priority and a direction to go,” he said.
The board will send Grubbs new prioritized lists from each of the seven aldermen by Tuesday. He will then compile a newer, shorter list based on the aldermen’s priorities. The list includes projects identified for as many as 15 years to projects targeted as a need in the next three to five years.
Grubbs is being paid $1,500 for travel and other expenses. He counseled the city this summer during planning for the municipal facilities bond referendum.
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