Chattanooga Mayor Andy Berke is seeking to continue under the fiscal 2017 budget, which ends June 30, while the city waits for the latest certified tax rate from the Hamilton County property assessor's office.
Hamilton County Property Assessor Marty Haynes recommended in an April 25 letter that the county and its 10 cities wait on passing their 2018 budgets.
That's because of the county's recent property reappraisal and how many appeals could wind up under review by the Hamilton County Board of Equalization in June, Haynes said.
"It has been our experience that the time requirement will exceed the current budget deadline," he said. "Reappraisals are always a challenge for our office due to the increased amount of work with the same number of employees. My staff is working diligently to provide the citizens of the county a fair and equalized assessment."
When appeals are completed, the assessor's office calculates a new certified tax rate. The new rate, by law, must be revenue neutral, meaning local governments can't bring in more - or less - property tax revenues simply because property values changed after a reappraisal. Hamilton County undergoes a property reappraisal every four years.
The Chattanooga City Council usually begins to review the mayor's operations and capital budgets in May and votes on them by late June.
Daisy Madison, the city's chief financial officer, said reappraisal year budget delays are nothing new. Local governments need the new certified tax rate to pass their budgets for the next year.
"The city's tax rate, itself, is an integral part of the budget document," Madison said.
If the city council passes a continuation budget, the city is allowed to spent money at the current fiscal 2017 levels, she said.
Berke's budget continuation request is not unique.
Maura Sullivan, chief operating officer for the city, said Chattanooga had to do a continuation budget in 2013, the last reappraisal year.
In 2001, then-mayor Bob Corker made a similar request, according to June 19 council minutes. He cited the same reasons when he appeared before the council.
"Corker stated typically the budget would be passed at this time, but the County is going through their reappraisal process," records state. "He stated that he talked with the County Property Assessor who indicated the reappraisal process would take place toward the end of July to the first of August."
The Chattanooga City Council will discuss continuing the 2017 budget on May 16.
Contact staff writer Paul Leach at 423-757-6481 or pleach@timesfreepress.com. Follow him on Twitter @pleach_tfp.