Officials from the City of Petal have passed a budget for Fiscal Year 2025 that features slightly more revenue than expenses in the general fund, and no property tax increases from the city itself.
The budget, which was recently approved by the Petal Board of Aldermen, lists revenue of approximately $9.96 million and expenses of $9.89 million, for a surplus of $70,000.
“In my recollection, that’s the first time we’ve ever really been able to do that,” Mayor Tony Ducker said. “Even though we have traditionally come in under budget, this is the first time that I know of – since I’ve been in office – that we’ve actually budgeted to have the surplus.
“Overall, (the budget) is really strong, and I give a lot of credit to the department heads – in discussions with them last year, we had the conversation that last year’s budget was going to look a lot like this year’s upcoming budget. They have bought into the big picture of what we’re trying to do, and that really makes it a lot easier when the board gets the requests when they come in.”
The general fund for Fiscal Year 2025, which begins October 1, includes some of the following items:
- Police department: $2.84 million
- Fire department: $2.75 million
- Streets and highways: $2.07 million
- Senior/cultural center: $135,885
- Building and inspection: $361,927
“We’re starting to starting to talk about what our expenditures and revenues are going to look like over the next three to five years,” Ducker said. “From a business standpoint, that’s just a lot better way to do it.
“From a pay standpoint, we didn’t really give any raises – we’re going to come back next year, revenue permitting, and start looking at more of a cost-of-living type of pay raise. Over the last three years we’ve been very aggressive with pay, with all our city employees, in particular our first responders. It was just due to lack of revenue that we fell behind (for this upcoming budget).”
The millage rate within the city limits – not including taxes from Forrest County and the Petal School District – remains at 46.21 mills, meaning residents will see no increase on property taxes from the city itself.
One mill is equal to one-tenth of a cent. To calculate property tax, divide the millage by 1,000 and multiply it by the property’s assessed taxable value. For example, if a city were to institute a .64 millage increase, the owner of a $100,000 home would pay an additional $6.40 per year in property taxes.
Ducker said the additional 3-percent sales tax increase at Petal restaurants that was recently approved by voters has helped out in keeping the millage rate the same for this upcoming budget. That measure, which was passed in 2021 by 74 percent of voters, allocates funds to the city’s Parks and Recreation Department, which allows the city to maintain that department at its current level.
That, in turn, frees up money in the city’s fund for other endeavors and projects, such as pay raises for the police and fire departments, as well as improvements in the Parks and Recreation Department. The tax began to be collected in October 2021.
“I think it’s been about 17 years that (the millage) has been at that (rate),” Ducker said. “Obviously, the 3 percent took some pressure off areas of the budget, so that has helped.
“We have had rising revenue, and I think the board and administration over the past 17 years have basically said that’s one area that we don’t want to touch.”
