The City of Collegedale approved their new fiscal budget Monday, which includes a property tax increase of 12%.
More details to come.
EARLIER (May 17th):
People in Collegedale could see their property taxes go up.
Monday commissioners approved the first reading of their 2023-24 budget which includes a 12% property tax increase.
This means that the tax rate would increase from $1.3897 per every $100 of assessed value to $1.55.
Bridgett Raper, the Communications Strategist for the Small Cities Coalition of Hamilton County, says the proposed tax increase was precipitated by the funds lost through the elimination of the Hall Tax and the state legislators’ recent refusal to take up the issue of granting cities’ requests to return a portion of the State Shared Sales Tax.
She says both issues resulted in cities receiving lower revenues from the state and placing the additional financial burden on citizens through property tax increases.
Raper adds that Tennessee law requires that the property tax rate be adjusted to not yield additional revenues for municipalities with the reassessment every four years.
Therefore property taxes in Tennessee do not increase with increasing home values without a rate increase.
Raper says the additional property taxes are needed to maintain their current level of services by paving roads, maintaining parks and the greenway system, maintaining public safety, and address inflation pressures.
She says this increase keeps the City within range of its inflation adjusted historical rates.
Before the vote Monday, commissioners addressed parts of the budget which includes employee raises.
Collegedale Commissioner Tonya Sadler claims the 12% tax increase would go towards "the purchase of six new police Durangos, employee raises on top of a new enhanced retention bonus plan, and other frivolous capital expenses such as painting the light poles at Collegedale City Hall."
She voted against it.
Vice Mayor Tim Johnson says the taxes are high, but believes they need to find a compromise.
"I'm not in for all the salaries but in today's market you have to be competitive or you will see people leaving. Public works makes low salaries so they pick up and go somewhere else and that puts us in a world of hurt," says Mayor Johnson.
Johnson says purchasing police cars is needed to prevent police from falling behind.
Johnson proposed selling excessive cars to cover the costs.
The second reading and public hearing will be on Monday, June 5th at 6 p.m.
Sadler is encouraging Collegedale residents and property owners to attend the public hearing.