Commissioners gave city staff the authority to prepare an ordinance that sets the tax rates at 12.5 cents per $100 of assessed value on real estate and 14.3 cents per $100 on personal property.

Both are the compensating rates, which allow the city to receive the same amount of revenue that last year’s rates generated not including revenue from new property.

The proposed real estate property tax rate would generate $437,265, and the personal property tax rate would bring in $69,637 for a total of $506,902 in property tax revenue.

Last year’s rates of 13.4 cents per $100 on real estate and 15.8 cents on personal property generated a total of $497,030 in property tax income.

If used this year, the 2002 property tax rates would have generated $468,748 in real estate revenue and $74,993 in personal property income for a total of $543,714.

Commissioners could have used a 13.0 cent per $100 of value rate on real estate and 14.9 cent per $100 on personal property that would have netted 4 percent more revenue or $527,314.

Commissioner Henry Stone made the motion to use the compensating rates for 2003 property taxes. Commissioner Herbert Williams seconded the motion.

Stone noted increases this year in city water and sewer rates, a new county occupational tax and a tabled school property tax hike as reasons for his motion to use the compensating property tax rate.

City Manager Tom Gordon warned that an agreement calling for 80 percent of property tax revenue paid by new industries at the two new industrial parks to go to the Franklin-Simpson Industrial Authority for use at the industrial parks could result in the city generating less revenue using the compensating rate.

A public hearing is not required when the compensating rate is used to set new tax rates. The proposed ordinance must have two city commission readings, pass a second reading vote and be published before taking effect. No vote is required on first reading of a city ordinance.

In other matters:

•Commissioners elected to finance the purchase of property on South Street that will be used as a collection site for appliances and other large items for recycling. The city is obtaining a five-year $150,000 loan from Franklin Bank and Trust at a 3.8 percent interest rate. The payments with interest will total just over $173,000.

•Gordon updated the City Commission on the city finance’s for the first month of the current fiscal year. Revenue for July was higher, and expenses were lower in the general and municipal utilities funds compared to 2002, while revenue and expenses are up in the sanitation, cemetery and Harristown Community Development Block Grant funds.

Gordon said “things are going well with city finances.” However, he cautioned commissioners not to draw any conclusions because one month’s data is not sufficient to determine trends. He also said the general fund fluctuates wildly from month to month.

•Commissioners authorized Mayor Jim Brown to sign a pledge agreement with Integra Bank and approved a motion to obtain the same agreement with other banks. The city is required to have the agreements to ascertain that the bank retains sufficient funds in order to provide adequate collateral to the city.

•The Commission approved the purchase of a New Holland loader from Levee Lift in Bowling Green at a cost of $11,900 plus trade in of a tractor being used by the storm water maintenance crew. The tractor being traded in was purchased in July 1999 and has cost the city more than $34,645 in repair bills, including $9,100 this year. The new loader will be purchased using municipal aid funds.

•Mayor Brown presented Sarah Wilkerson with a Key to the City in recognition of her 27 years of operating Sarah’s Charity.