The Municipal Service District voted to reduce the millage rate charged to residents of the district to .275. In early September, distict trustees had voted to set the millage rate for the 2008-2009 fiscal year at .351, the same rate charged the year before,
On Sept. 29, trustees lowered the rate for the new year by roughly 22 percent.
Chairman Alva Hollon said the change in the millage rate was due to a provision in the district’s charter which states it cannot hold any contingent reserves in excess of $200,000. Hollon said the reserve fund has more than $300,000 in it due to conservative spending in the last few years. As a result, he said, the district used the excess money to lower taxes.
"In economic times like these, anytime you can maintain the level of services that we have here at a reduced tax rate is a good thing," said Hollon.
Hollon said another paper had erroneously reported that the district had more than $400,000 in its reserve funds. He said the Emergency Cleanup fund, which totals $100,000, will no longer be carried as a reserve item and will become a line item for the 2008-2009 budget year.
