News

City tax rate going up by 1 cent

By Bill Moss, Published: June 1, 2017

City residents will see a property tax increase of 1 cent per $100 valuation under a $38.7 million budget the Hendersonville City Council adopted Thursday night. Water customers will see a small increase in their bills, too, ranging from 42 cents for a light user to $1.14 a month for a heavy user of water.
City Manager John Connet attributed the overall increase in the budget to a 25 percent premium increase in the city’s employee health insurance plan, a $3 million to $5 million capital investment in a new police headquarters, the hiring of three new firefighters and the addition of two police officers, who will take up animal control service after the sheriff’s office quit covering those calls in the city. The animal control officers will be regular sworn officers, Connet said, and will be able to respond to all calls and work backup whenever they're needed.
The budget is made up of a general fund of $15.4 million covering most city services, a water and sewer fund at $21 million, environmental services (garbage and recycling) at $1.5 million and other funds totaling $782,000. The tax rate goes up from 46 to 47 cents per $100 valuation. The tax rate for special taxing district downtown and in the Historic Seventh Avenue District remain unchanged.
The water rate increase of 1½ percent outside and 2 percent inside continues the City Council’s efforts, under pressure from the county Board of Commissioners, to move outside water customers closer to the rate paid by Hendersonville residents.
A hearing on the budget drew just one local resident, frequent commenter Ken Fitch, and no discussion from the City Council, which had looked in detail at capital spending priorities, water and sewer line expansion and operating budgets during two workshops.
Personnel and benefits are up 12 percent, Connet said, because of salary adjustments the city made after  a pay and classification study.
Debt service goes up 13½ percent because the city bought a new fire truck. The budget also allocates money for street paving and park improvements and sets aside money for new gateway signs that will be installed in the city as part of a new countywide signage program in the upcoming fiscal year.
Because of the continued high cost of insurance, the council directed Connet and the staff to study ways the city could lower its health care cost.

The city pays employees’ health insurance premiums now and will continue to do so provided employees participate in a series of wellness mandates, including checkups, health screenings and wellness classes.
“In year 1, as long as they do those they will continue to have their health care premiums paid 100 percent,” Connet said. In 2017, the city will begin an effort to be a 100 percent smoke-free workplace. Employees will have a year, starting Jan. 1, to complete a smoking cessation class and quit smoking.
“If they’re unable to go through the smoking cessation program and they cannot quit smoking and then beginning in July 2019 they will be required to pay a portion of their health insurance.”
The new health insurance requirement drew no comments from council members. They will must be formalized and approved by the City Council.