MC property taxes likely dropping 45 cents

With property values going up due to revaluation, the Town of Mountain City will likely see its lowest property tax in 20 years. According to materials presented at the Town of Mountain City Board of Aldermen and Mayor's May 5 budget workshop, the planned tax rate is $0.7847 per $100 valuation. This is down 45.73 cents from the current $1.242 rate. This rate is not final and could change in June. The $0.7847 property tax rate would be the lowest in Mountain City since 2006, when it dipped to $0.75. It would also be the biggest single-year drop according to the Tennessee Comptroller of the Treasury's records, which go back to 1998. The property tax rate for Mountain City hasn't been below a dollar since 2006. Between Johnson County's proposed property tax drop from $2.21 to $1.36 and Mountain City's rates, a town citizen would go from a combined $3.452 tax per $100 valuation to $2.1447, a near 38% drop. In Mountain City, the last three fiscal years have been the highest tax rates on record: $1.242, $1.278 and $1.279, respectively. With property values going up over 64% due to the state-mandated property revaluation that is ongoing through June, Johnson County and Mountain City property tax rates were going to be adjusted. The $0.7847 tax rate is not finalized, as equalization reviews will take place in early June. TOWN LOOKING FOR CUTS According to City Recorder Audra Gerty, the town's proposed 2026-27 general budget is $176,170 over right now and its water/sewer fund is $377,574 over. This is if all departmental requests were included in the budget, Gerty said. The council spent much of the budget workshop going over potential cuts to balance the budget. The town must have a balanced budget by the end of June. For the water/sewer fund, the potential fix, as has been previously discussed, is raising water rates by at least 10%. That hike would net the town an additional $422,482, putting the water/sewer fund in the financial black, but leaving little room for budget amendments during the year. Gerty said this would equate to a $2.86 base rate increase from $15.40 a month to $18.26. A 12% rate hike, according to the presentation, would net $506,979 in revenue, putting the fund six figures to the good. One possibility would be to lower the minimum water billing requirement from 2,000 gallons to 1,000 gallons, noting that other municipalities have already done so. No final decisions on the water/sewer fund were made on May 5. For the general fund, Mayor Jerry Jordan said the options were to raise taxes or cut back special requests. Aldermen Lawrence Keeble and Jerry Horne balked at any tax increases, opting to look over the proposed budget for potential cuts. After a discussion that went over many special requests, including changing the town's software system and departmental vehicle needs, Jordan encouraged the aldermen to look over the budget and bring their ideas back for the next workshop on May 14.