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Published: Jun 24, 2008 08:51 PM
Modified: Jun 26, 2008 09:29 AM

Morrisville will not raise tax rate to 19 percent over revenue-neutral
 
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Looks like Morrisville commissioners heard their citizens loud and clear.

After much citizen protest, the town will not be raising its tax rate to 19 percent above above a revenue-neutral rate.

That is what commissioners decided at a meeting June 24, though exactly what the restructured budget will look like will not be discussed until another meeting June 25.

After a unanimous vote to deny the budget as proposed, commissioners gave out suggestions to the staff on components to look at cutting from the budget — everything from new hire positions to greenway funding to town-sponsored community events.

They then directed Town Manager John Whitson to bring forward a revised revenue-neutral budget Wednesday night, as well as other budget options that raised the tax rate less than 19 percent over revenue neutral.

Whitson warned commissioners that a revenue-neutral budget would mean drastic cuts, possibly affecting current personnel.

“I think it’s great they’re going to rework it,” said Jane Rockwell. The 78-year-old retiree did not think a revenue-neutral budget was feasible, but said her fixed income could take a property tax increase of four to five percent.

“You spoke. We listened. We heard,” Mayor Jan Faulkner said to those in attendance at Tuesday night’s meeting.

The crowd was not as big as one last week when citizens protested the proposed budget’s tax rate of 43.96 cents per $100, saying it was high and would be especially painful in such tight economic times.

Citizens at Tuesday’s meeting echoed those concerns.

“It’s like organized crime,” William Green said before the meeting, referring to a tax rate 19 percent above above revenue-neutral.

Revenue-neutral describes a tax rate that is lowered to compensate for a revaluation in which property values are increased, keeping the actual money raised by taxes the same as before the revaluation. Wake County’s latest property tax revaluation, the first since 2000, became effective Jan. 1.

The rate Morrisville had been proposing would mean the owner of a $200,000 home would pay about $878 in city taxes.

Green said the sudden increase in property taxes would greatly affect many in the town’s older population on fixed incomes.

Wednesday’s meeting on the budget will be held at 6 p.m. in Morrisville Town Hall, 100 Town Hall Drive.

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