CLARKSVILLE, TN (CLARKSVILLE NOW) – After four previously failed attempts, the City Council approved the first reading of the FY 2026-27 budget on Monday with a proposed property tax rate of $1.02, which is a 10-cent increase from the previous year.

Conversations ranged from concerns about City debt issuance to funding the city’s proposed senior center.

How we got here

On June 11, the council rejected a proposed budget that would have included a 24-cent property tax increase (from 92 cents to $1.16 per $100 of assessed value), lowered from its initial 31-cent increase. That budget was rejected 2-11.

On June 18, even after making more than $697,000 in expense reductions, the council voted down the budget once again on a 5-8 vote. That budget set the property tax rate at $1.07, a 15-cent increase from the current rate.

During their meeting on June 22, the council voted it down a third time with a 6-7 vote. The proposed property tax rate at the end of the meeting was $1.03, an 11-cent increase.

Last week, on June 29, the City Council voted it down a fourth time with another 6-7 vote. The proposed property tax rate remained at a $1.03 at the end of the meeting.

Mayor reduced proposed tax rate hike

Monday night, Pitts introduced an amendment that lowered the proposed rate to $1.02.

“We’re just moving the allocation back into operating out of the capital budget,” he said. “We had frozen all the capital projects, so we’re just moving that back into operating so it will not short them and affect staff.”

Clarksville Now has reached out to the City of Clarksville for additional information on the amendment.

Councilwoman Keri Lovato reintroduced an amendment to fund $2.4 million back into Clarksville Fire Rescue for a needed fire truck. She said previously the move would not raise the proposed property tax rate.

City of Clarksville CFO Christen Wilcox confirmed that if the council approved the capital project, they could eventually move it back into the city’s general fund, when applicable.

The amendment was unanimously approved.

Proposed $300,000 in reductions, department heads address council

Councilman Joe Shakeenab introduced an amendment to cut $300,000 across five departments.

A reduction of $75,000 was proposed for the city’s HR department’s general fund budget. Reductions of $75,000 was also proposed for Building and Maintenance, Forestry and the Tree Board.

Shakeenab proposed reducing the city’s IT budget by $50,000, as well as Parks and Rec and Transit. Lovato introduced a motion to separate each proposed reduction, which was approved.

Each department head made their case on how they would be affected with the reductions. The Council approve each amendment except those to Transit and Parks and Rec.

This article will be updated with additional information on those cuts.

Amendment financing 3 road projects for $10 million

Councilwoman Stacey Streetman proposed an amendment similar to the one she introduced last week to fund road improvements for Needmore Road, Memorial Drive Extension, as well as Rossview Road, all for one year.

  • Needmore Road project – $4.7 million.
  • Memorial Drive project – $4.5 million.
  • Rossview Road project – $1 million.

Concerns over $200 million in City debt

Lovato said she has concerns with the debt associated with the move.

“We have a debt problem, and we are not asking enough questions about how much debt we’re going into. This is over a million and a half dollars we’re adding into the debt, with no clear 5-10 year forecast of what this is going to do future tax rates,” she said. “Until we fully understand as a council what is going on with our debt, we should not keep approving these projects.”

Councilwoman Wanda Smith asked if the City of Clarksville has access to borrow more money, or if the city had met their borrowing power. Wilcox said in Tennessee, there is no limit on how much you can borrow.

“However, for me forecasting what we are spending in debt for our fiscal health, we have definitely met that. We’re at least in $21 million a year in debt service, and I’m not comfortable with any more than that,” Wilcox said.

Smith asked why, and Wilcox said because the city can’t have a tax increase now just to support the $20 million they already have in debt service, along with the inflation each city department is feeling.

“Just to throw out, too, the State of Tennessee has projected that sales tax revenue will be flat, there will be no growth in it. So, our revenues, some of them are slowing down quite a bit, outside of property taxes,” Wilcox said.

When asked if she believes the city has issued too much debt, Wilcox said, “I can tell you it keeps me up at night.”

Wilcox said debt issued from 2009 will have its last debt payment in 2027.

Councilman Tim Chandler said based off feedback from constituents, he’s not voting in favor of the proposed amendment. Councilman Jerry Haywood said Needmore Road is falling apart, and the project needs to be considered for approval.

The City Council voted down the amendment 6-7.

Proposed reduction of $1.2 million for senior center

Councilwoman Ambar Marquis introduced an amendment to cut $1.2 million from Parks and Rec’s planned senior center.

“The city will not be able to utilize this until well into December, maybe the next new year, in which case it’s just money that will potentially be just sitting in our account. We can’t utilize the building until court proceedings, so I would rather see this bring the tax rate down,” Marquis said.

“So, that’s the logic here. We can’t use it, it’s just going to sit there until something happens in either court, or we get new council and mayor seats come January,” she said. Marquis’ amendment was voted down 6-7.

First reading of budget passes

Before voting on the first reading of the budget, Lovato said while she still doesn’t believe the budget before them is the final product, she will be voting in favor of it because the council needs to move forward.

The FY 2026-27 budget was approved 7-6. Voting in favor were Brian Zacharias, Carlos Peters, Chandler, Travis Holleman, Streetman, Lovato and Pitts.

Voting against were Eric Claunch, Marquis, Smith, Haywood, Jimmy Brown and Shakeenab.

What’s next in budget approval

Smith said going into the second reading, she will propose an amendment for the property tax rate to remain at $0.92.

The day and time for the second reading of the FY 2026-27 budget has not been announced.

| ADD US ON GOOGLE NEWS: Click here to see more local news from Clarksville Now