Bonifay Council will look at 5 mill ad valorem tax

BONIFAY – Bonifay City Council has instructed City Attorney Luke Taylor to draw up a draft ordinance for implementing a 5 mill ad valorem tax in the City. Action was taken at Council’s regular meeting Monday night at City Hall.

Councilman Richard Woodham made the motion to draft an ordinance. There would be review of the ordinance at the next Council meeting on Dec. 14 at 6 p.m. If approved a public hearing would be set and after that Council would vote on the ordinance.

The City currently charges no ad valorem tax at all and Woodham said the City needs more income for several reasons.

“We have no state retirement and very little for City employees,” Woodham said. The current retirement system does not allow employees to accumulate very much retirement money.

Woodham also said that the City has very little money for things like street repair and little money for matches for state or federal grants.

“One reason we have trouble getting help is no ad valorem tax,” Woodham said. “If the City is willing to have an ad valorem tax we could get help.

“I know it’s a bad time with the economy but we have to do something,” Woodham said.

It is estimated that the City would realize about $87,000 per mill of tax. It would cost about $250,000 to get the City employees onto state retirement, with the remainder of the money raised available for other purposes.