Vernon adopts $31.88 million budget, lowers tax rate

Vernon city commissioners adopted a $31.88 million budget and lowered the city’s property tax rate by one cent Sept. 15, but the spending plan is expected to raise $219,931 more in property taxes than last year’s budget.

The adopted rate is 52 cents per $100 of taxable value, down from 53 cents. The rate includes 36.145 cents for maintenance and operations and 15.855 cents for the interest and sinking fund.

Although the rate is lower than last year’s, it is approximately 7.36% above the city’s no-new-revenue rate of 48.437 cents per $100 of taxable value, listed in the city’s 2026 tax notice. That benchmark represents the rate needed to generate approximately the same taxes from properties taxed in both years.

For example, a property whose taxable value remains at $100,000 would owe $520 in city property taxes under the adopted rate, compared with $530 at the previous rate. An increase in taxable value could offset the benefit of the lower rate. Commissioners attributed the additional revenue to appraised values and new property.

The rate includes 36.145 cents per $100 of value for maintenance and operations and 15.855 cents for the interest and sinking fund.

The budget, which covers Oct. 1 through Sept. 30, 2027, includes approximately $31.88 million in expenditures, including debt service, operations and transfers. Revenue and interfund transfers total approximately $30.01 million, leaving a budgeted deficit of $1.87 million.

City Manager Darell Kennon’s budget summary identifies several major projects contributing to that deficit and states that money for those items is available in existing fund balances. The largest item is $1 million in required matching funds for an Economic Development Administration grant.

Other projects include a $400,000 UV replacement at the wastewater plant, $150,000 to rebuild both booster stations and $238,000 for an Aquatics Center slide. The budget also includes a $50,000 match for a downtown revitalization grant and $45,000 for broadcast and security cameras at four locations.

Mayor Pam Gosline said officials had cut more than $1.5 million during the budget process as they worked to hold down the tax rate despite rising operating costs.

“Operationally it costs more to run the city,” Gosline said, describing the budget reductions as “hard, very hard.”

The commission approved the budget and tax rate in separate roll-call votes without recorded opposition. No members of the public spoke during either public hearing.