Residents To See Property Tax Rate Hike

Holly Springs residents will see a millage rate hike, but that does not necessarily translate into a property tax increase. 

The city council on Monday unanimously approved setting the rate at 6.055 mills, up from 5.469 mills. Mayor Tim Downing was not present. 

The proposed rate is considered 'revenue neutral' as the city expects to collect the same amount of property taxes due to the decline in property values. Most residents won't see a property tax increase since most homes declined in value.

City Manager Rob Logan said the rate will fill a shortfall of about $150,000 in the city's general fund budget. 

The rate is set ahead of the city’s 2013 budget, which runs on a calendar year. 

No one spoke during the public hearing the council held before its meeting.

The council also voted to award a contract to Excelsis Construction for stormwater projects at J.C. Mullins Baseball Field and on Hickory Road in the amount of $15,594.80. The amount was originally around $19,000, but the city decided not to include the demolition of curbing that was included in the original proposal.

It also amended its ordinance to require hotels in the city to have patrons enter through designated lobbies and also prohibits motels under the city's zoning classifications.