Hendersonville residents to see tax increase on March 5 ballot: What to know

Hendersonville residents will have the option to pass a proposed tax increase in the March primary election.

But what's the money for, and how will it be used?

According to Hendersonville Board of Mayor and Aldermen Ward 6 Alderman Eddie Roberson, the half penny increase in sales tax would provide funding limited to 10 years and would be earmarked for road paving, investments in public safety and park improvements.

"Most cities surrounding Hendersonville have already implemented a similar small increase and used it to address infrastructure issues," Roberson said. "It is my opinion that the current budget projections for next year will not allow the city to make these critical additional investments."

In a bid to clear up any confusion, and address the many questions he's received on the referendum, Roberson agreed to sit down with The Tennessean to answer questions ahead of the Tuesday vote.

"Please understand my responses are mine and do not necessarily represent the views of other Board of mayor and aldermen (BOMA) members," he said.

Why are we voting for this Referendum?

Under state law the only way a city or county can increase sales tax is by a vote of the citizens (referendum). On the contrary, property tax can be increased or decreased by a simple majority vote of the BOMA.

Why is there a need for additional revenue for the city?

We are a city with an aging and outdated infrastructure with inadequate roads, and because of inflation, are not able to make the critical investments needed to address these needs. For example, the city’s paving costs have gone up 35%, the new garbage contract beginning in June is 349% higher for the same level of service we are receiving today. Public safety expenditures are in need of higher salaries for our police officers for competitive and retention reasons (the city is having trouble attracting and retaining police officers), and both our fire and police departments need new emergency vehicles to replace their aging fleets. Fire engine replacement alone is estimated to cost $4 million in next year’s budget.

Some say the city doesn’t have a revenue problem but a spending problem. What has the city done to control spending?

The BOMA has taken steps to control spending such as a freeze on all new positions, delayed further new projects and cut road paving. We also did not fully fund public safety vehicle replacements.

If approved by voters, will the sales tax increase eliminate the need for a property tax increase?

Yes, for many years. In fact, it may not require consideration of a property tax increase for up to 10 years.

What safeguards are in place to ensure the additional revenues, if approved in the referendum, are not wasted on frivolous expenditures?

The referendum for the sales tax has several unique features. 1) Accountability, the increase is limited to 10 years. The increase expires after ten years, reducing the sales tax back to the current rate. 2) Earmarked, the increase can only go for paving, public safety, infrastructure improvements such as roads, and parks improvements. 3) Transparency, each year the mayor in his proposed budget to BOMA must highlight how much was raised by the new sales tax and where specifically it is going. This annual report card will allow citizens to know how much was raised by the small increase, where it is going, and be able to hold its government accountable. And again, the small increase goes away in 10 years.

I really don’t want to increase any taxes, so what are the alternatives?

BOMA has terrible options for next year’s budget and the future of our city. We can 1) approve a property tax increase, 2) seek a ballot referendum to increase sales tax ½ penny, or 3) cut City expenditures. Since police and fire account appropriately 75% of the city’s personnel budget, it would be reasonable to expect possible cuts in these critical services. It is also likely that the financial support the city provides to non-profits would have to be cut or eliminated to balance our budget as well further delay improvements for Stop 30 and Sanders Ferry Roads.

Is it true that a ½ penny sales tax increase would not be as expensive for city residents than a property tax increase and how would it impact me differently?

Yes, a property tax increase spreads the cost to only city residents and always impacts senior citizens more because of being on a fixed income. I am not a fan of property taxes and have not voted for one since being elected on BOMA. On the other hand, a small sales tax increase spreads the costs to everyone that does business in the city. In other words, the many tourists visiting our city who use our parks and roads would help offset the improvement and maintenance costs of the city. It has been estimated that a ½ penny increase in sales tax would cost the average city household $74 per year compared to a $277 property tax increase per average household. The most simple way to understand the sales tax impact is the cost of a meal at a local restaurant. The sales tax increase would add 25¢ on a $50 meal.

So citizens of Hendersonville not politicians are the decision maker on this issue?

The question of whether a ½ penny sales tax increase is approved is in the hands of Hendersonville citizens. If citizens vote no on the referendum, then BOMA will have to decide whether to approve a property tax or cut city government. So, please consider the future of our city when voting on the “Hendersonville Investment in the Future Act.”

This article originally appeared on Nashville Tennessean: What to know about the Hendersonville tax increase on Tuesday's ballot