Council approves lower tax increase

Portales City Council members on Tuesday unanimously approved a property tax increase, but by a smaller amount than originally proposed.

Council members voted to hike taxes by 1.47 mills, up from the current 2.796 mills for residential property owners.

A mill generates $1 for every $1,000 in taxable value. If property is assessed at $300,000, its taxable value is $100,000 and the property tax would be $100 per mill.

The council in February voted tentatively to increase the mill rate by 4.425. On Tuesday, it decided to approve 1/3 of that proposed increase for now and consider an additional hike next year.

A standing-room only crowd of about 75 attended the meeting with most who spoke telling the council they opposed the larger increase, which would have been a 158% hike from the current rate. One resident defended the council members who have said an increase is essential because of rising costs for fuel, equipment and salaries.

"Everything has gotten much, much more expensive," said Marilyn Rapp, finance director for the city. Rapp said an increase had been a part of the discussion for a long time.

City Manager Sarah Austin said that since 1940, they could not find any record of a property tax increase.

Councilor Dianne Parker defended the decision by saying, "We're proud of our low taxes, but look at our parks. Look at our streets." Parker said it was hard for the council to look at Facebook anymore because of all the negative posts and comments toward it.

The council allowed public input once the action item was brought to the table. Multiple property owners took the podium and shared their reasonings as to why they were not happy about the increase.

Some believed the council members were "too old" to be making decisions. Others expressed the increase would affect more than just property owners, saying rent would rise and businesses would struggle.

Allan Carter, a property owner, said to the council, "Maybe it's time to think outside the box," suggesting the council find other solutions to fund the various projects needed to improve the city.

"I don't disagree there's a lot of things the city needs to do ... but how do we do it?" Councilor Mike Miller asked. "This is not an easy decision for anyone sitting up here."

"We hear your concerns," Mayor Ronald Jackson said.

It was Councilor Chad Heflin who made the motion to amend the original proposal and increase the taxes by 1.47 mills instead of 4.425, which is 1/3 of that proposed increase for now. The council also decided to consider an additional hike next year.

Those in attendance applauded the decision for the smaller increase.

In a later interview with The News, Austin said regarding the decision, "If you have a concern, there's an avenue to reach out to them (councilors) before the meeting so the conversation does not have to reach the level that it did on Tuesday night."

The item had been on the agenda for Tuesday since February. Austin suggested that people regularly check the agendas to see what is up for discussion and reach out to the city for any further input or concerns prior to the scheduled meeting.