Town taxes may rise this year, says Mayor

Taxes may be raised for the first time in more than 20 years, Sparta Mayor John Miller noted after hearing the town’s audit report during council’s regular monthly meeting Jan. 4. In additional bad news, the town learned that it may still be losing money on water and sewer service, a fact that could lead to increases for local residents.

The audit was for the fiscal year 2003-2004 year, which ended June 30, 2004.

“We haven’t had to raise taxes since 1982 but that may be a consideration this year,” he said. “It’s something I think we need to think about.”

Responding to the comment, David Todd, the auditor with Paul, Cox & Todd agreed, noting that “it’s something to look at.” The town’s current tax rate is 20 cents per $100 in real estate valuation

According to the audit, the town’s general fund had revenues totaling $943,779, a $42,446 net loss from the final budget estimates. Those losses primarily were attributed to decreased tax collections (down $29,542) and declining investment earnings (down $26,268).

On the other hand, town expenditures of $955,915 were listed, an increase of $30,310. Increases were seen in general government (up $11,394), public safety (up $5,406), environmental protection ($1,764) and cultural and recreation ($2,987) and contingency expenses ($8,000). Given those numbers, the town lost a net $12,136 during the ‘03-’04 budget year. The town’s fund balance, or savings, totaled $407,565.

A total of $10,000 is the revenue on one cent of taxes. During the audit, Todd highlighted new additions to the audit, which include a management discussion analysis from Edwards and Cox that discusses the financial analysis of the town from the management’s perspective.

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