As the budget for the 2024-2025 fiscal year begins to take shape, the upcoming fiscal year could be the last time Henry County continues an 11-year streak of no water or sewer rate hikes.
Public Service Authority Manager Dale Wagoner on Tuesday presented his department’s budget request to county officials.
“Eleven years without a rate increase is quite the accomplishment, and I applaud our staff for being able to continue to provide quality services in the absence of increased revenue,” Wagoner said.
In total the PSA is requesting a budget of $14.2 million — a reduction of 5%, or $814,077 — from the current fiscal year’s PSA budget.
Staff attributes the budget reduction to fewer projected capital expenditures. This is in contrast to the current fiscal year’s expenditures, like a lagoon cleaning at Philpott Lake that cost more than $200,000.
The most expensive projected capital expenditure, at $545,000, is the rehabilitation of the water system.
Wagoner said that continuing to avoid water and sewer rate increases might become untenable in the near future. He cites costs associated with labor, electricity and chemicals as among the reasons why the PSA is likely to seek increases in future fiscal years.
PSA staff predict that they will have to raise rates as early as July of next year.
“Sustaining this approach indefinitely is becoming increasingly burdensome,” Wagoner said. “The ongoing escalation in costs related to labor, electricity, chemicals and materials presents a challenge to our organization moving forward.”
The PSA charges residential users a flat rate of $30, while non-residential users pay $45 per month, both for 4,000 gallons per month. A little over 41% of residents and businesses in Henry County are connected to the PSA’s water and sewer system.
The PSA’s 11-year rate streak isn’t the only thing taking pressure off residents’ wallets. The budget currently calls for no property tax increase, an ongoing trend since July 1, 2017.
The total county budget is a little over $200 million. It represents an increase of 5.7%, or $11.1 million, from the current fiscal year.
The county’s real estate tax rate is 55.5 cents per $100 valuation, while personal property is taxed at $1.55 per $100 valuation.
County staff suggests that residents’ willingness to shop locally makes it possible to keep taxes at their current level.
“One of the easiest ways for citizens to help keep our property taxes low is to shop local when possible,” Wagoner said. “Sometimes, it can be as simple as buying gasoline for your car before leaving or after returning to town and buying essential items such as groceries locally. If an item is shipped to an address in Henry County, the sales tax stays in this county.”
Property tax accounts for a significant portion of Henry County’s revenue. Despite property taxes remaining the same, staff predicted an increase of tax-related revenue in the amount of $4.2 million, or 13%, over the current fiscal year.
County officials could opt to increase taxes before the July 1 start of the upcoming fiscal year. A penny increase in land-related taxes would translate to $313,000, while a penny increase in personal property taxes would equal $61,000, according to staff.
