Board approves $194.5 million budget on initial reading

Board hears study on apartment moratorium

The construction of a new water tower, an addition to Houston Middle School and the purchase of additional park land are three of the major goals set forth in the city’s budget for the upcoming fiscal year.
On first reading, the Germantown Board of Mayor and Aldermen has unanimously passed the city’s proposed budget for the 2021-22 fiscal year.
Second reading and a public hearing will take place at City Hall on June 14 at 6 p.m.
“This has been one of the most challenging budget seasons I have been involved in during my 15 years with the City,” said Budget and Financial Services Director Adrienne Royals.
Uncertainty about federal and state grant funds related to Coronavirus relief efforts, the complete phasing out of the Hall Tax and significant losses in interest income and room occupancy tax negatively impacted revenues.
On the positive side, the city will receive approximately $444,000 in additional funding from the state, property values continue to show strength and the city’s local option sales tax revenue has remained steady despite the economic downturn resulting from the pandemic.
“Adherence to the city’s strict financial policies and strong decisions made in fiscal year 2021 helped balance the fiscal 2022 budget. While some cities are struggling to make ends meet, the City of Germantown continues to fund the high level of services that our residents expect,” said City Administrator Patrick Lawton.
• Items of interest include:
While the value of Germantown properties increased an average of 20 percent, residents can expect to pay about the same in property taxes due to the Certified Tax Rate. Those whose property values increased more than the average will pay a bit more, those with increases below the average will pay a bit less.
In order for revenues to remain roughly the same in the upcoming year, the Germantown tax rate will be rolled back from $1.95 to $1.69.
Germantown’s proposed fiscal year 2022 budget totals $194,551,596.
Capital projects likely to be of public interest include the construction of a new water tower, an addition to Houston Middle School, purchase of additional park land and improvements to the busy intersection of Germantown Road and Wolf River Blvd.
A proposed change in the storm water fee for all property located in Germantown will increase from an average of $3.25 per month to an average of $9.
The increase will fund personnel responsible for monitoring and maintaining drainage ditches throughout the city, supplies and materials to complete the work, a significant increase in the investment in cured-in place piping and an additional $800,000 annual investment in improving stormwater infrastructure.