Collierville’s Board of Mayor and Aldermen unanimously approved its $273.7 million budget Monday evening setting up the financial plan from July 1 through June 30, 2024.

The budget is one of the most important plans town leaders make annually as it’s the framework and financial for all they seek to accomplish over the next year. However, this one was the first under Town Administrator Molly Mehner. Mehner succeeded James Lewellen who had overseen the town’s day-to-day operations for 27 years.

From January through April, the Board of Mayor and Aldermen met in weekly work sessions to discuss the budget details.

The budget includes at 12-cent property-tax increase, bringing the rate to $1.84 per $100 of assessed value. For a $450,000 home, the increase equates to about $135.00 for the year, or $11.25 monthly. Property tax is the town’s most stable form of revenue, and the increase will amount to nearly $2.7 million. The suburb expects about $44.4 million from property tax revenues.

Collierville to increase utility rate, explore automated meter readers

Most of the increase is earmarked staffing the suburb’s sixth fire station, which is expected to break ground this summer. However, the town is also hiring an animal control officer to respond to animal calls so shelter staff can focus on its responsibilities. An additional dispatcher and another jailer are also included in the tax increase. The town has had the same number of dispatchers and jailers since 2005.

Additionally, there will be an increase to the utility rate to fund automated meter readers and perform necessary maintenance. Additionally, the cost of chemicals to treat water has soared due to inflation. The average home’s monthly increase is only about $5.

One of the biggest budget challenges are related to inflating costs.

“In some cases we are not receiving bids for services at all which puts us in a very difficult position,” Mehner told the board during a May meeting.

Recruiting and retaining employees continues to be a priority for the town. The budget includes a 5% wage increase for staff. Many departments are fully staffed, Mehner said. However, she noted it’s important to remain competitive, and the town will take a close look at its wages, benefits and workplace culture this year.

Collierville considers a 12-cent property tax increase to raise nearly $2.7M

The board has more assertive revenue assumptions in the budget, better aligned with what the town is collecting. The board particularly addressed sales tax in work sessions. Although it fluctuates, the last few years have shown the town can rely on it slightly more.

The town plans to fund $3 million in paving this year, and shift all town employees to a uniform software system for the business side of operations.

The board also approved Collierville School’s $130.4 million budget.

Mehner said she was attracted to Collierville due to the strong financial past, but noted it’s important to keep up with growing community’s expectations.

“It’s all about continuing to set the standard to make Collierville a community of choice for family and businesses alike that is safe and distinctive by design,” she said.