CAIRO — Property taxes in the City of Cairo will remain unchanged following a vote this week by the Cairo City Council.
Council members voted Monday to set a millage rate of 7.72 mills — the maximum millage rate the city could set without implementing a tax increase.
The new millage rate is expected to generate more than $1.4 million in revenue with a projected shortfall of $45,000 to fund the fiscal year 2021 budget. Actual collections in fiscal year 2020 totaled $1.5 million, and City Manager Chris Addleton is expecting similar figures next year to fully fund the $1.5 million budget.
Addleton added that he doubts the COVID-19 pandemic will have much of an impact on collections this year.
“We expected a reduction in our (special purpose local option sales tax) proceeds, but all we’ve seen is an increase,” he told city council members.
The city manager attributed the discrepancy in expected impact to sales tax revenues to an uptick in online shopping — which the city can collect upon.
“Everybody is shopping at home,” said Council member Jimmy Douglas.
In addition, Addleton noted that the city has received $492,000 in aid from the federal government which was placed directly in the city’s general budget.
The millage rate was approved with a unanimous vote.