Union residents may see their city taxes go up slightly after the Board of Aldermen voted to purchase a new fire truck.
In a special called meeting Friday, Mayor Wayne Welch told the board a new fire truck will cost the city about $237,000. After talking with Citizen’s Bank about financing options for the purchase, he said, $70,000 will need to be paid immediately.
“What we’re going to have to do is, it’s gonna cost that much,” Welch said. “We’re going to have to go up 1 mill for the fire truck. It’s going to be about $15,000 per year.”
City Clerk Cheryl Chaney said that 1 mill raise would come out to a $10-$15 bump per household.
Initially, Aldermen had hoped to sell an older fire truck and use the proceeds to cover a portion of the down payment. However, Welch said he recently learned the city would not be able to do that.
According to the state, any money gained from selling one of the city’s older fire trucks would be classified as a rebate. Restrictions on rebate funds prohibit putting the money into the general fund, which is where the down payment would come from. Instead, the rebate money must be put back in to the fire equipment budget.
“We can’t use any rebate money for that,” Welch said. “I really thought we could sell the fire truck, get $20,000 and use that.”
However, with new information the city is limited in what it can do. Welch said the city will need to pay the $70,000 from the general fund. The only way to cover that expense, he said, is to raise taxes.
The Aldermen voted to move ahead with the fire truck Friday due to a Sept. 1 deadline to make the purchase. Any millage increase will be further discussed when the board meets for budget sessions next month.
