After learning the city of Murphy will run an estimated $1 million budget surplus this year, the city council last week voted to lower the property tax rate instead of increasing it as they had planned.
The tax rate set for 2018 is 49 cents per $100 assessed property valuation. The 2017 rate was 50 cents and the proposed rate for 2018 was 50.05 cents.
With the surplus for the current fiscal year, which closes Sept. 30, Murphy would post a reserve fund balance of about $5 million, or about 32 percent of annual general fund expenditures. Some council members feel the level is too high, especially since city policy specifies a reserve fund balance equal to 10 percent of general fund expenses.
“We can’t just keep growing this thing,” Councilmember Don Reilly said. “It looks like we’re taking the taxpayers’ money and I’m not okay with that.”
By Joe Reavis • [email protected]