The Red Bank Commission has voted 4-1 for a budget scenario that would be based on a nine percent property tax increase.
Commissioner Jamie Fairbanks Harvey voted in opposition during the session at the Red Bank Community Center.
The vote to set the new tax rate is planned for July 15.
The Red Bank Commission in 2023 voted a $.57 property tax increase. That followed an $.11 property tax hike in 2021.
The council earlier voted 5-0 on first reading in favor of a budget requiring a five percent tax increase. However, Commissioner Harvey voted against that proposal on second reading.
The council this week was presented with several budget options.
Vice Mayor Hollie Berry made a motion in favor of Scenario #3, which included use of the rainy day fund (fund balance) as well as a tax increase.
She said, "I move to amend the Budget Ordinance passed on first reading on May 20, 2025, so as to produce forecasted revenues of approximately $5,737,065, with a forecasted use of fund balance of approximately $205,675, in order to add a positioin of stormwater supervisor and which is an increase over the forecasted revenues passed first reading on May 20, 2025, of approximately four percent."
It was noted, "This is a probable increase of approximately 9.277 percent, yielding a $.98 tax rate."
Hiring of a stormwater supervisor will increase the number of city personnel to 84. It was this expenditure change that was added after the budget’s first reading that drew opposition from a number of citizens who said they are opposed to the trend of increasing property tax every year. But it is a cost that four members of the commission felt was needed.
This additional position of stormwater manager earlier failed to pass. Commissioner Fairbanks Harvey said at that time that the first mention she had heard about a five percent increase in property taxes was at the first reading of the 2026 budget. At that meeting, Vice Mayor Berry moved to add the position of stormwater manager since the budget would not pass unanimously with Commissioner Fairbanks Harvy in opposition. That job had been omitted from the first drafts as a compromise to balance the budget.
Stringers Branch runs through the middle of Red Bank along Dayton Boulevard where most businesses are located. It threatens to cause damage from flooding during heavy rain events. The stream runs beneath many buildings and there is the possibility that stormwater could do enough damage to close those businesses which in turn would deprive the city of taxes, said Mayor Stefanie Dalton. The mayor and vice mayor felt that threat merits having a dedicated stormwater manager and asked for the budget to be amended to add the position along with about $80,000 to pay for it.
That amendment was included in the version of the budget that passed on the final reading. Residents at the meeting and the commission members were told that money for the stormwater position would not be taken from the general fund, but instead would come from a separate $70 flat rate stormwater fee that residents pay each year. That fund is separate from the general fund which mostly comes from property tax. The mayor said she had campaigned on raising taxes incrementally which are easier to absorb instead of with large increases. It was noted that the city may be able to help residents who need it with a tax relief program.
A second important vote approved a comprehensive plan for Red Bank. This plan adopts an official land use plan for physical development of the city. Several years of preparation for the comprehensive plan included public opinion. It will be used as a guide for future development in the city. The plan is available to see on the city’s website.
The board of commissioners also approved applying for and accepting a grant from the department of Homeland Security, for state and local cybersecurity in the amount of $59,922. This grant would reduce risk and liability for the city by providing strategies and tools to prevent cybercrimes that would leave the city vulnerable. This would be added to what the city already is doing including improving multi-factor authentication, improvements for training employees for best practices and making upgrades to firewalls.
An application for another grant, The U.S. Department of Transportation Safe Streets and Roads for All Grant, was also authorized. There is the possibility of receiving up to $5 million with the city having to provide 20 percent of that. The money would be used for the demonstration of transportation improvements aimed at enhancing safety of transportation.