CLARKSVILLE, TN (CLARKSVILLE NOW) – After the City Council rejected the fiscal year 2025-26 budget last week, city officials returned to the drawing board and came up a new proposal, which was approved Tuesday following several amendments and discussions.
Going into the meeting last week, the city’s budget included a 15-cent property tax rate increase. Growth, inflation and the critical need to expand services, adopt technological innovations, and increase workforce capacity all drove the tax increase, according to previous reports.
Several council members tried to find ways to cut the budget, which included defunding the Frosty Morn project. Even with the cuts, the council still voted down the budget during that initial reading.
Budget proposal 2.0
“Based off the outcome of last week’s meeting, and the vote of the initial budget proposal, I’ve submitted to you the fiscal year 2026 budget proposal 2.0 if you will,” said Mayor Joe Pitts. “There is no property tax rate increase proposed. To achieve that, we eliminated all new hires for every department, including the vehicles and equipment associated with those new hires.
“We also kept in most of the budget amendments adopted from last week. We did retain the 2.5% general wage increase, and the capital projects were also kept intact. … Our growth and external forces that drove our first budget proposal dictated an increase in property tax rate just to keep up. We have to have an approved budget. We can’t serve citizens adequately or operate this city on a continuing resolution like Washington does and doesn’t do very well.”
Passed amendments
While the city eliminated all new hires to avoid the property tax rate increase, Councilperson Stacey Streetman proposed an amendment to restore 16 hires previously listed, along with the associated vehicles and equipment.
One of those positions was an Assistant Golf Course Superintendent for Mason Rudolph Golf Course. The other 15 fall under the following departments:
- 3 positions – Building and Codes
- 4 positions – Clarksville Fire Rescue
- 1 position – Garage
- 3 positions – Parks and Recreation
- 4 positions – Clarksville Police Department
“Also, we have on here there is a transfer to debt service of $1.15 million, and that’s because currently, the general fund is transferring $10 million to cover the $15 million in debt service. I’m asking to increase that by $1.5 million. And that offset is to reduce the transfer from the capital projects fund. … So, that is a 4-cent increase from what we are looking at.”
Interim City of Clarksville CFO Christen Wilcox told the council that for the average homeowner with a home value of $300,000, the 4-cent property tax rate increase would be about an additional $2.20 per month.
The amendment was approved 8-4 with Streetman, Brian Zacharias, Carlos Peters, Ambar Marquis, Wanda Smith, Joe Shakeenab, Keri Lovato and Pitts voting in favor. Voting no were Deanna McLaughlin, Travis Holleman, Jerry Haywood and Jimmy Brown.
It’s important to note that the city did confirm the position of stormwater operations division manager is still a part of the FY 2026 budget for Clarksville Gas & Water, which was solidified after the council approved the second reading last night for the department.
Frosty Morn project
Last week’s cuts included defunding and closing the Frosty Morn project, while transferring the property to the Community Neighborhood Services land bank/trust to create privately built and managed, affordable, low-income housing for senior citizens.
The Frosty Morn project returned as a part of this week’s proposed new budget. However, Marquis called for a vote to defund and close the project again, with McLaughlin adding an amendment to market the property for the development of said privately built and managed affordable, low-income housing for senior citizens.
Pitts previously told the council that $4 million has already been put into the Frosty Morn project, which accounts for demolition, a new roof, drainage and keeping the site secure. He also said with Frosty Morn, the city is trying to get a property in a legacy neighborhood that can be used for people who need it. Smith hit those same talking points on Tuesday, but when it came time to vote, the council again voted to defund and close the project.
McLaughlin’s amendment to the amendment was approved 8-4, while the original Marquis amendment passed 7-5. Voting in favor of the original amendment was McLaughlin, Marquis, Holleman, Haywood, Brown, Shakeenab and Lovato. Voting no were Zacharias, Peters, Smith, Streetman and Pitts.
Budget voted down, then approved
Initially Tuesday night, the council voted against the budget, by a vote of 6-6, but they called for a second vote, and it passed 7-5. Voting in favor were with Zacharias, Peters, Holleman, Streetman, Shakeenab, Lovato and Pitts. Voting no were McLaughlin, Marquis, Smith, Haywood and Brown. Peters was the swing vote.
The City Council will vote for a second time on Thursday, June 26, ahead of the start the new fiscal year on Tuesday, July 1.
This article has been updated with additional information.
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