City to ask for tax hike to fund capital improvements

HOLLY SPRINGS — The city of Holly Springs will ask the Legislature to approve a local 1 cent sales tax with the proceeds supporting a large capital improvements program.

Mayor Andre DeBerry tells the South Reporter the levy would bring in about $171,428 a year.

DeBerry says the revenue would eventually produce $8 million to purchase equipment such as a town weather siren, heavy equipment for departments and police vehicles. The city also plans a new fire station.

Currently, the city collects a 2-cent tourism tax on restaurants and motels. It brings in about $130,000 a year with half going to fund tourism and the other half goes to retire debt on the Eddie Lee Smith Multi-Purpose Building.

DeBerry said cities are using these means to make their capital budgets because the property tax base brings in only enough revenue to pay for operational costs.

“This is not a Cadillac plan. Every city around us is doing capital improvement plans and we can do the same thing. We don’t have the funds to purchase equipment out of our operating budget.

“We’ve got to create our own opportunities to provide services and to grow this city,” DeBerry said.