Morehead’s City Council voted to make some adjustments to their real and personal property tax rates for fiscal year 2020 Monday night.
Council voted against the second reading of an ordinance that would have set the real property rate at 31.8 cents per $100 of assessed value and the personal property rate at 52.25 cents per $100 of assessed value. That’s below the compensatory rate of 34 cents and 56.47 cents respectively.
Councilmembers Glen Teager and Melisa Patrick were the only two yes votes on the ordinance. Teager says while the city would miss out on some funds at the lower rate, residents need a break amid a pandemic-damaged economy. On top of that, he says the city could make up for the loss in the future.
A motion was later made my Councilmember Tom Carew to set the taxes at the compensatory rate, citing the city’s need to find funds to provide competitive pay to city police and public works employees. He also acknowledged complaints by residents regarding sharp rate increases at the Morehead Utility Plant Board, saying making up for the tax shortcomings later could land the city in a similar situation.
The motion passed, with Teager casting the lone dissenting vote. A second reading of the ordinance will take place next month unless a special meeting is called.