DURRENBERGER: TAX RATE INCREASE NEEDED TO OFFSET RISING PAYROLL COSTS
Washington County Judge John Durrenberger says the proposed increase in property taxes is needed for salary and cost-of-living increases for county employees.
On Tuesday, Washington County Commissioners proposed a new tax rate of $0.5032 per $100 valuation, up $0.0082 from 2020’s rate of $0.4950 per $100, and just shy of the voter approval rate of $0.5034 per $100.
When asked why the county is seeking to raise its tax rate as other local entities reduce theirs, Durrenberger explained that the county has no other means to obtain revenue than through ad valorem taxes. He added that the county is planning for $1.56 million in new budget costs through pay raises and new personnel positions.
Durrenberger said, “It takes a lot of money to give pay raises. We’re trying to keep and stay ahead of this inflation rate, and I’m not sure we’re doing it yet.” He said the county is trying to get closer to market value for employee salaries, but admitted it has been “way behind over the years.” He said the county is making other adjustments to the new budget to offset the increase from salaries.
Numbers compiled by Washington County Auditor Sharon Stolz show that the no-new-revenue tax rate of $0.4534 per $100 would have raised $19,130,091 in tax revenue. The current rate of $0.4950 per $100 would bring in $20,631,373. The newly proposed rate of $0.5032 per $100 would raise $20,927,298, up $295,925—or 1.43 percent—in revenue from the previous rate, and $1,797,207—or 9.39 percent—more than the no-new-revenue rate.
Durrenberger noted that roughly $375,000 in taxes are being generated from new properties, and that the increase in the current tax levy on all properties with the new rate would be $1,677,127.
The public will have the opportunity to provide comment on the proposed rate at a public hearing during the court’s meeting on Tuesday, September 14th.