What to know
After hearing comments from residents against the tax rate increase during a two-hour public hearing and after a recommendation from Finance Director Lisa Wasner, the council adopted the tax rate of $0.1821 per $100 valuation. The rate includes a maintenance and operation rate of $0.0796 per $100 valuation and a debt service rate of $0.1025 per $100 valuation.
Previously, the tax rate was proposed at $0.2021 per $100 per valuation in comparison to the FY 2024-25 tax rate of $0.1421 per $100 valuation. In the city's budget packet, the total revenue is estimated at about $13 million for FY 2025-26
Residents weighed in on the proposal, citing concerns about the proposed increase.
“This proposed tax hike would wipe out many of the benefits that we should be getting with these new state laws that are aimed at reducing property property tax," resident Esther Lum said during the public hearing. "So I just want to close by saying that anyone who's had enough of this excessive spending here in the city should consider running for a council position next year."
“I think that something like the issue of taxes, property taxes, should be something that's on the ballot that all of the people are involved with, not just make it a city council meeting, because of the fact that it really hits home with everyone,” resident Heidi LeWellin said.
The voter approval tax rate for Shenandoah in FY 2025-26 is $0.2036 per $100 valuation, according to meeting materials, meaning the city would not be able to put the tax rate up for a public vote unless it was proposed at that rate or higher.
At the Aug. 27 meeting, Wasner presented to council a recommended police pay increase of $383,070, intended to bring the salaries in line with those offered by the Montgomery County Sheriff's Office as a part of the budget. The pay is part of the approved budget.
What they’re saying
“I just want to make sure that we all understand that this is not the end,” council member Frank Robinson said. "There's inflation out there and salaries and all those things. I have a feeling that we're going to be back here having the same conversation [next year].”
“[It’s] 10 years I've been here, and we've reduced the tax rate every year into the credit of the prior councils,” Rainmaker said. "They reduced it for the prior 10 years before that too. It's been 20 years that we've gone without having a tax increase, and that's pretty good.”
“I'd like to add one small little thing that probably is the driver of everything that we've discussed tonight is that our police department is outstanding, ... and if we did not do this, we would lose a lot more,” council member Jim Pollard said of the pay increase to police officers.
