Collierville aldermen are likely to impose a 12-cent property tax increase as part of the budget they began reviewing this week.

The Board of Mayor and Aldermen discussed the issue in a Thursday work session and came to a consensus, although no formal action was taken. Staff was directed to draft the budget with the 12-cent increase, which would bring the rate to $1.84 per $100 of assessed value.

For a $450,000 home, the increase annually would be about $135.00 for the year or $11.25 monthly. Property tax is the most stable form of revenue, and the increase will amount to nearly $2.7 million. Collierville expects about $44.4 million in property tax revenues.

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The budget is one of the board’s most critical votes annually as it funds the town’s operations and objectives while setting the suburb’s financial plan. The budget under review lasts from July 1, 2023, through June 30, 2024. 

Aldermen hope the property tax can hold for at least two years knowing the town has strong reserves. However, it’s hard to guarantee anything with continued economic uncertainties, Alderwoman Maureen Fraser said.

“We’ve been fortunate our sales tax has increased, but that’s not guaranteed,” Mayor Stan Joyner said.

The 12-cent property tax increase funds some program changes — adding a dispatcher and a jailer for Collierville Police and other positions throughout the suburb. However, about 10 cents is to cover staffing at a new fire station — the suburb’s sixth.

Fire Chief John Selberg believes he needs 16 firefighters when it eventually opens in early 2025, although he hopes to also add the personnel for an ambulance there.

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During the work session, aldermen looked at a number of tax scenarios from as little as 11 cents to as much as 19. However, they believed 12 cents was sufficient to fund the town’s $104.3 million in operating expenses.

The board will adopt the budget ahead of July 1, when it goes into effect. The entire budget will likely be $232.9 million, including Collierville Schools budget. The suburban district and staff are still making slight adjustments, and that number does not include capital improvements.

Molly Mehner, town administrator, told the board it’s a tough year for capital projects due to inflation.

The most notable of capital improvements is the sixth fire station, across the street from Collierville High on Shelby Drive. The cost was expected to be about $6.5 million earlier this year.

Selberg worked to open Germantown’s fourth fire station on Forest Hill-Irene when he led that suburb’s department, so he has experience in starting a new station. He hopes a bid can be awarded to a contractor in July.

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“We are looking at 18 months for construction, so January of 2025, we’d open the station up as long as it stays on track. ... It’s nice to see it coming to fruition, but I can’t take a lot of credit. I have to take some. I gave them a tour of Station 4 (in Germantown),” he said with a chuckle.

The board toured the Germantown station in November of 2021 before Selberg joined Collierville. It helped them think through the design of their fire station, and what is needed so it serves the community well.

The fire station exterior will be similar to the high school in some ways and complement it with a similar brick design. The high school’s Dragon logo will be on the front of the station and on the bucket of the ladder truck. The truck came in last week and will rotate with other trucks until it can be housed at the station.

The board is also reviewing its water rate.

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“We are behind where we need to be,” Mehner told the board. “We can probably make it another year, but if we don’t (increase the rate) this year, it’s an absolute must next year.”

John Fox, director of public utilities, noted costs for materials post-pandemic is an issue. Additionally, much of the infrastructure was installed in the late 1980s or 1990s.

“The infrastructure is hitting the 20- to 30-year mark where we need to replace it,” Fox said.