CLARKSVILLE, TN (CLARKSVILLE NOW) – A 20-cent property tax increase was approved by the City Council Thursday evening, to pay for an ambitious city transportation plan.
During a special called session to approve the 2021 city budget, the tax hike passed 7-3 with 1 abstention. Voting yes were Vondell Richmond, Wanda Smith, Travis Holleman, Karen Reynolds, Stacey Streetman, Ashlee Evans and Mayor Joe Pitts. Voting no were Wallace Redd, Wanda Allen and Trisha Butler. Jason Knight abstained from voting.
Absent from the meeting were Richard Garrett and Dajuan Little.
The increase brings the city property tax to $1.23 per $100 of assessed value, 1 cent under the $1.24 rate that was in place from 2011 until 2019, with the exception of 2015.
Cuts proposed to Parks & Rec, Transportation
Multiple council members brought forth amendments to change the proposed rate. Ward 9 council member Karen Reynolds suggested a $1.18 rate.
City Attorney Lance Baker advised the council that an amendment to reduce taxes would require a corresponding decrease to the budget, and City Mayor Joe Pitts deemed Reynolds’ amendment out of order, a motion that was overruled by the council.
In response, Reynolds amended her original amendment to include a $500,000 decrease to the Parks & Recreation budget and a $1.2 million decrease to the transportation plan. Reynolds’ amendment failed 8-2 with one abstention. Voting yes were Reynolds and Ward 12 council member Trisha Butler.
Ward 10 council member Stacey Streetman spoke against the amendments, saying the new tax rate is needed to fund vital infrastructure projects in the Transportation Plan.
“What projects does that mean we are going to give up?” asked Streetman.
Reynolds said that she was “gambling” that the state will later allow the city to use COVID-19 relief funds to supplement those budgets, a sentiment Pitts called irresponsible and “throwing darts at a dart board.”
Butler proposed several budget cut amendments, including a $1.5 million cut to Parks & Recreation, suggesting the department sell the Swan Lake and Mason Rudolph golf courses.
She also proposed an amendment maintaining the current property tax rate by cutting funding to the 2020+ Transportation Plan. All of Butler’s amendments were voted down.
Why a property tax increase?
Earlier this week, Pitts told council members that the increase in property taxes will primarily be dedicated to the Transportation 2020+ Plan, which passed its first reading Thursday night.
According to information on the city website, the average appraised home value in Clarksville is approximately $166,997. Under the proposed property tax increase, a home of that value would see an increase of $83.67 per year in property taxes, or an additional $6.97 per month.
The increase is expected to provide $6.9 million in revenue for infrastructure projects and allow the city to borrow $167 million over the next six years to pay for transportation projects.
The proposed property tax increase requires two votes to pass. City Council members will vote again on the property tax increase Tuesday, June 22, at 5:30 p.m.