Edison officials set new millage rate, give update on financial debt

EDISON – The city of Edison’s millage rate for Fiscal Year 2024-25 is decreasing – slightly – after a near 10-point increase last year, city officials announced during Monday night’s regular City Council meeting.

It’s been about a year since Edison adopted its “recovery plan” to address a financial crisis that at one point saw the city upwards of $500,000 in debt. In September 2023, the recovery document reported that the city’s millage rate (property tax rate) would be raised from 18 to 29 mills. However, financial documents shared at the Monday meeting had the 2023 rate at 25.534. The 2024-25 rate is decreasing to 25.482.

Lori Moore, Edison’s financial director, also announced that the city paid its debt down to about $90,000, including debt to the Bank of Edison.

While last year’s meeting saw a room packed with members of the public, voicing their disapproval of the steep increase, this year’s new rate adoption was relatively quiet as about seven citizens showed up to listen. Most of them were familiar faces, Edison residents who have regularly attended city meetings since the financial crisis was first revealed.

Cheryl Timpson, an Edison resident, began attending Edison’s council meetings before the COVID-19 pandemic. At a September 2023 meeting she said she was concerned about the increased property taxes and the community’s inability to pay them.

Calhoun County is one of the most economically depressed counties in the state. The poverty rate is 25%, according to the American Community Survey. It’s ALICE — Asset Limited, Income, Constrained, Employed – rate us at 31%. This accounts for people who live above the federal poverty level but still struggle to afford the basics where they live.

Timpson said many of Edison’s community members are retired and live on a fixed income; so she was worried about how they would pay for higher property tax rates and increased bills. However, about a year later, Timpson said she is pleased with the progress the city has made.

“I feel like we are coming the right way and getting out of debt fast,” she said.

While Timpson said she hasn’t personally been impacted by increased water and sewage rates, she said she was worried about her neighbors and fellow community members who might be.

The city raised solid waste, as well as water and sewer, rates in January for the first time in years. At a December council meeting, Mayor Shirley Worthy said the city had been operating at a deficit and prices had to be increased to match inflation and rising costs. A $14 monthly law enforcement charge was put in place as well.

City officials mentioned at multiple meetings revisiting and potentially decreasing these rates as the city got back on track with its finances. Timpson said she hopes this is true. She said she’s surprised by how quickly the city has cut back its debt.

“It’s been much faster than I expected,” Timpson said.

She said now that the city is functioning better, she hopes to see roads repaired. She pointed out that several roads, including MLK Drive and Bluffton Road, have hazardous holes that need to be patched.

Moore said the city’s property tax rate saw only a slight difference because budget items used to calculate the rate stayed the same from last year, but there was some increase in the values on property appraisals. She said Edison’s residents won’t see much of a change with the new rate.

“It gives not a whole lot of relief, but a little bit,” she said. “If the value of your house increases, then taxes are going to be higher, even if the millage rate is less.”

Moore said even she was surprised by how quickly the city was able to decrease its debt. The changes made to sewer and water rates, the increased tax rates as well as the police fee are what allowed the city to get to this point, she said.

“Hopefully, in another year we’ll have it all paid off and have some reserves put back so if something happens … a disaster … we’re prepared for it,” Moore said. “We want to get the city back on track.”

She said she recognizes that some of the changes upset Edison’s residents, but Moore said it is imperative to have the city’s debt paid as soon as possible.

The city’s largest debt was to the company responsible for its garbage services. Moore said the city had “people that had not been paid in so long” that the city was at risk of being taken to court and severing valuable relationships with vendors that provide crucial services.

“We’ve got to be able to buy supplies, do things and keep those relationships open,” she said.

Moore said it was the citizens who made the biggest difference in struggling alongside the city as it navigated its recovery process, along with good management decisions from council members.

“Our employees buckled down and struggled through this with us as well,” she said. “It happened a little faster than we had anticipated, but we’re kind of proud of that.”

Now the city’s residents can look forward to increased staffing for some of its crucial departments. The city had to cut back on staffing last year amid the financial crisis.

The city just opened applications for another full-time officer for its police department.

Edison Police Chief Donald Bryant also announced at Monday’s meeting that the city had recently hired another full-time officer along with the part-time officer that was already on the force. This comes after nearly a year of the city operating with only one officer due to budget cuts, which sparked some concern on crime coverage among citizens.

Moore said there’s also room in the budget to hire additional help for the city’s public works team.

“We’ve been behind the eight ball in public works for a good while, and we’re trying to get … the city back to where everything’s being taken care of,” she said.

However, road paving will be on the back-burner for a bit, Moore said. In addition to its debt, Edison has failed to submit a legally required audit detailing city expenditures and revenue since 2018, making it ineligible for state funds.

“I hate to say that, but since we’re not eligible for grants, we’re not getting the funds to pay for roads like other cities are,” she said.

Moore first started working with the city about a year ago to address its financial issues. In that year, she’s seen a lot of change.

“I feel good about it,” she said. “We’ve got a council and a mayor that are very involved. Hopefully, every year we’re going to get a little bit better.”

Staff Photo: Lucille LanniganStaff Photo: Lucille Lannigan