Oktibbeha County supervisors are expected to approve a fiscal year budget Tuesday that requires a $3.47 million dip into cash reserves to balance revenues with expenditures.
The dip into the reserves, however, is temporary, District 4 Supervisor Bricklee Miller said, as revenue has not yet been collected to satisfy October, November and December bond payments.
A draft of the proposed $34.48 million Fiscal Year 2016-17 budget shows total expenditures at $31.2 million and combined revenues of $27.73 million, which includes $18.28 million from local tax levies.
To offset the expenses, the draft shows the beginning $6.74 million cash balance dropping to $3.28 million at the end of the fiscal year.
The dip will be replaced once revenue is collected, Miller said, and Oktibbeha County is not expected to continue lowering its cash reserve balance in the future.
Oktibbeha County’s overall millage rate will increase by 2.75 beginning Oct. 1 after supervisors approved a 1-mill increase for road improvements and another 1.75-mill increase to service bonds funding a new Golden Triangle Development LINK-backed industrial park in north Starkville.
The county has not significantly raised taxes outside of minor millage adjustments since FY 2010-11, said County Administrator Emily Garrard.
Supervisors are expected to levy a 121.74-mill tax on residents living outside Starkville, Maben and Sturgis. That figure includes a 66.03-mill levy for the Starkville-Oktibbeha Consolidated School District, which is level from the previous fiscal year.
Residents of Starkville, Maben and Sturgis will pay a 119.32-mill rate, which does not account for the 2.42-mill levy specifically for Oktibbeha County Volunteer Fire Services.
Starkville residents also face a 3.6-mill city tax increase after aldermen committed to fund the industrial park’s construction and Starkville Police Department improvements with millage levies.
Aldermen are expected increase the city’s rate from 21.98 mills to 25.58 mills Tuesday by allocating 1 mill for police headquarters renovation and 2.6 mills toward servicing the industrial park’s debt.
Ad valorem rates affect how much residents pay for real property, including taxes on homes, rental properties, businesses, business fixtures and equipment, car tags and utilities.
A combined 6.35-mill increase by the city and county for Starkville residents means a homeowner utilizing homestead exemption will pay an additional $63.50 annually per $100,000 of assessment. Commercial property owners pay a higher ratio.
Both Starkville aldermen and county supervisors will meet at 5:30 p.m. Tuesday to approve their respective budgets. The aldermen meet in the City Hall courtroom, while supervisors hold their meetings on the second floor of the county courthouse.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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