The Murphy City Council has reached consensus on a proposed tax rate for Fiscal Year 2026, opting to adopt the state’s voter-approval rate following a detailed budget work session led by City Manager Aretha Adams and Finance Director Bertha Fitzpatrick-Walker.

Pending formal approval at a public hearing next month, the council signaled support for a combined property tax rate of $0.358 per $100 of valuation. The rate includes a maintenance and operations (M&O) portion of $0.266 and an interest and sinking (I&S) rate that will remain flat at $0.091, consistent with recently approved debt obligations.

Adams said the proposed levy would generate approximately $10.5 million in M&O revenue, a 4% increase over the current fiscal year.

“Our property tax rate history shows that while the rate has incrementally decreased over the years, valuations have increased,” she said at the Thursday, July 31, meeting.

Councilmembers acknowledged that despite the reduced rate, residents may still see higher tax bills due to increased property values.

“The rate did go down. The rate went down because the values of the properties went up,” said Mayor Scott Bradley. “If we were static and showing a rate change, then that would be saying we’re taxing you less. We did not tax anybody less. So, it’s disingenuous, and I hate it.”

The voter-approval rate would add about $419,000 to the city’s general fund and increase the average household tax bill by an estimated $123 per year, or roughly $11 per month, according to Adams.

Councilmember Ken Oltmann summarized the overall picture: “So we’re increasing the budget by 10% and asking our citizens for a tax increase of 4.6%.”

Adams noted that part of the increased budget is due to the just authorized $18 million in Certificates of Obligation, with associated payments stretched over multiple years.

The proposed FY26 budget totals approximately $63 million across all funds, up 10% from the prior year. That increase includes new debt issuance and ongoing capital projects.

Personnel costs have risen 5%, while contractual services increased 29%. Notably, stormwater expenditures have decreased 38% due to staffing realignments.

Among the personnel changes, the city plans to add a fire inspector, an administrative sergeant, and a part-time animal control care technician.

Reclassifications in the fire department will promote certain driver-level paramedics to lieutenants and captains to battalion chiefs, resulting in a net gain of one full-time position citywide.

Adams said the promotions would provide a clearer career path for fire personnel as well as giving Murphy officers the ability to command the scene when multiple departments respond to a call.

The council also backed utility rate adjustments under a scenario that retains the current base rate but increases tiered usage charges. Fitzpatrick-Walker explained the reasoning behind the approach: “If we left the base rate the same and just added the change to the tiers, the people that are using more water are paying for that usage.”

This scenario, labeled as “Scenario Three,” will raise water and wastewater bills by about $6.97 per month for an average residential user. The new rates are designed to ensure the utility fund remains self-sustaining over a five-year forecast period.

Fitzpatrick-Walker emphasized that the utility fund is entirely rate-supported and must cover fixed costs regardless of usage. “It doesn’t matter how much water you use,” she said.

A formal presentation of the utility rate schedule by the city’s consulting firm, NewGen Strategies, is scheduled for the Tuesday, Aug. 19, council meeting.

Council is expected to adopt utility rates and the tax rate after the final public hearing on Tuesday, Sept. 16.

Adams thanked the finance staff for their work, noting, “It feels like it’s been a very long tax season, budget season … It’s really been all hands on deck.”

and asking our citizens for a tax increase of 4.6%.”

Adams noted that part of the increased budget is due to the just authorized $18 million in Certificates of Obligation, with associated payments stretched over multiple years.

The proposed FY26 budget totals approximately $63 million across all funds, up 10% from the prior year. That increase includes new debt issuance and ongoing capital projects.

Personnel costs have risen 5%, while contractual services increased 29%. Notably, stormwater expenditures have decreased 38% due to staffing realignments.

Among the personnel changes, the city plans to add a fire inspector, an administrative sergeant, and a part-time animal control care technician.

Reclassifications in the fire department will promote certain driver-level paramedics to lieutenants and captains to battalion chiefs, resulting in a net gain of one full-time position citywide.

Adams said the promotions would provide a clearer career path for fire personnel as well as giving Murphy officers the ability to command the scene when multiple departments respond to a call.

The council also backed utility rate adjustments under a scenario that retains the current base rate but increases tiered usage charges. Fitzpatrick-Walker explained the reasoning behind the approach: “If we left the base rate the same and just added the change to the tiers, the people that are using more water are paying for that usage.”

This scenario, labeled as “Scenario Three,” will raise water and wastewater bills by about $6.97 per month for an average residential user. The new rates are designed to ensure the utility fund remains self-sustaining over a five-year forecast period.

Fitzpatrick-Walker emphasized that the utility fund is entirely rate-supported and must cover fixed costs regardless of usage. “It doesn’t matter how much water you use,” she said.

A formal presentation of the utility rate schedule by the city’s consulting firm, NewGen Strategies, is scheduled for the Tuesday, Aug. 19, council meeting.

Council is expected to adopt utility rates and the tax rate after the final public hearing on Tuesday, Sept. 16.

Adams thanked the finance staff for their work, noting, “It feels like it’s been a very long tax season, budget season … It’s really been all hands on deck.”

and asking our citizens for a tax increase of 4.6%.”

Adams noted that part of the increased budget is due to the just authorized $18 million in Certificates of Obligation, with associated payments stretched over multiple years.

The proposed FY26 budget totals approximately $63 million across all funds, up 10% from the prior year. That increase includes new debt issuance and ongoing capital projects.

Personnel costs have risen 5%, while contractual services increased 29%. Notably, stormwater expenditures have decreased 38% due to staffing realignments.

Among the personnel changes, the city plans to add a fire inspector, an administrative sergeant, and a part-time animal control care technician.

Reclassifications in the fire department will promote certain driver-level paramedics to lieutenants and captains to battalion chiefs, resulting in a net gain of one full-time position citywide.

Adams said the promotions would provide a clearer career path for fire personnel as well as giving Murphy officers the ability to command the scene when multiple departments respond to a call.

The council also backed utility rate adjustments under a scenario that retains the current base rate but increases tiered usage charges. Fitzpatrick-Walker explained the reasoning behind the approach: “If we left the base rate the same and just added the change to the tiers, the people that are using more water are paying for that usage.”

This scenario, labeled as “Scenario Three,” will raise water and wastewater bills by about $6.97 per month for an average residential user. The new rates are designed to ensure the utility fund remains self-sustaining over a five-year forecast period.

Fitzpatrick-Walker emphasized that the utility fund is entirely rate-supported and must cover fixed costs regardless of usage. “It doesn’t matter how much water you use,” she said.

A formal presentation of the utility rate schedule by the city’s consulting firm, NewGen Strategies, is scheduled for the Tuesday, Aug. 19, council meeting.

Council is expected to adopt utility rates and the tax rate after the final public hearing on Tuesday, Sept. 16.

Adams thanked the finance staff for their work, noting, “It feels like it’s been a very long tax season, budget season … It’s really been all hands on deck.”

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