by Leah Justice

Tryon Commissioner and Mayor Pro-Tem Roy Miller said he wants the town to see how it can find funding in the budget to eliminate a 2.5-cent tax increase approved last year.

Tryon Town Council met Tuesday, Jan. 21 and heard from Miller, who said the citizens shouldn’t be the first choice of where the town gets money.

“I suggest we bring back some alternatives and rescind the 2.5-cent tax increase,” Miller told the board. “The state treasurer’s office says we only need to have an eight percent fund balance. Right now Joey (town manager Joey Davis) is freezing a position. There’s other alternatives to where that $45,000 can come from. Because we fell short of the $45,000, the citizens shouldn’t be the first choice of where we get money.”

During the town’s budget discussions for fiscal year 2013-2014 the N.C. General Assembly was still considering withholding all hold harmless funding for local governments, which in Tryon’s case is $90,000. Tryon approved a budget in June 2013 without setting a tax rate waiting to see what the state was going to approve. The state ended up withholding half of the revenue from local governments, or $45,000 for Tryon. Tryon council approved a 2.5-cent tax increase to make up for that amount during a special meeting on July 29. Miller voted against the tax increase.

During a meeting on Aug. 20, 2013, commissioner Wim Woody, who was not present at the July 29 meeting, motioned to rescind the 2.5-cent tax increase. His motion failed in August by a 2-3 vote, with commissioners Doug Arbogast, George Baker and Mayor Alan Peoples voting against the motion to rescind and commissioners Woody and Miller voting for the motion.

Since those decisions, Tryon has elected a new board, with Miller and Baker remaining and newly elected commissioners Bill Ingham and Happy McLeod and newly elected mayor Jim Wright being sworn into office.

During council’s meeting this week, Baker argued with Miller about how the tax increase came about.

Baker said there was $45,000 the town needed to make up for and some suggested to pay for it out of fund balance, but Tryon’s auditors say the town’s fund balance should be higher.

“To spend money in the bank is the quickest way to perdition,” Baker said. “No one likes tax increases. I don’t like the tax increase.”

Baker said one commissioner was absent when the town approved the tax increase then the next month that commissioner was present and they tried to rescind the increase and it failed.

“We’re asking Joey to do something, which I don’t think is possible and keep the town running the way it is,” Baker said. “The town is finally in pretty good shape and I don’t want to see it go in the wrong direction.”

Ingham said former Tryon Mayor Alan Peoples talked about the town paying off $1.5 million (since a budget deficit in 2001). Ingham said the town had to be ahead in order to pay that off.

“I have a little problem going to taxpayers as the first option,” said Ingham. “You did freeze a position. If that position stays open it pays for that $45,000.”

Miller said if the funding is found in the budget, the tax decrease of 2.5 cents would have to begin July 1, the beginning of the new fiscal year, because rescinding the tax increase now could make it difficult for employees because tax bills have already been sent.

Miller made a motion to direct Davis to bring other options to rescind the 2.5-cent tax increase or if not, to leave the tax increase.

“If Joey looks at it and finds the money then we can rescind the tax,” Miller told Baker; “if not, we don’t have to do it.”

The motion was approved by a 3-1 vote, with Baker against.

State legislators said last year that they would withhold half of the hold harmless revenue from local governments this fiscal year and all of it next fiscal year. Tryon will need to find $90,000 in savings in order to make up for the tax increase plus another $45,000 in revenues proposed to be withheld from the state beginning July 1.