Could you pay higher taxes in Columbia this year?

If you live in Columbia, you might go yet another year without paying a higher property tax rate, although your home’s taxable value probably has continued to rise as values increase across the city.

Raising taxes might not be necessary if city leaders find other ways to close the nearly $8 million gap between what the majority of city departments would like to spend in the upcoming year and the city’s current projected income.

Mayor Steve Benjamin told The State he wants to avoid an increase.

“I do not and will not support any tax increases,” he said.

City budget director Missy Caughman said staff is not suggesting a tax increase at this point. But a memo to City Council members before Tuesday’s upcoming budget workshop says “a combination of increases in property taxes, new revenue sources and finding innovative ways to save or reduce costs” could be necessary to balance the 2017-18 budget.

Here are a few reasons why the city is looking for more general fund money this year:

▪ Healthcare costs for city employees continue to rise.

▪ Attracting and retaining high-quality employees, particularly in the police and fire departments, begs for competitive pay and benefits. High turnover rates results in higher costs for public services.

▪ The city is required to pay as much as $1.85 million more next year toward employee retirement contributions. At most, the city can expect half of that cost to be picked up by the state, but it’s not clear how much the state will chip in. It depends on what the Legislature does in the next two weeks.

The city actually lowered its property tax rate two years ago and held it steady last year. At the same time, assessed property values have been rising about 3 percent each year for the past several years, according to the city.

Columbia residents are looking at possible increases in their costs for water and sewer service and stormwater and parking fees in the upcoming year.

Separate from the costs to provide those services, an early draft of the city’s general fund budget shows the majority of city departments have asked for $149 million to operate in the coming year, compared to $141.1 million in projected revenues and transfers into the general fund.

Council will delve further into budget talks in a work session starting at noon Tuesday.

This story was originally published April 17, 2017 at 3:34 PM with the headline "Could you pay higher taxes in Columbia this year?."