There is really no time when taxpayers welcome a big property tax increase. But in our current economic crisis, there was shock when Chattanooga Mayor Ron Littlefield proposed a city property tax increase of 64 cents per $100 of assessed property value.
That would raise the property tax rate from $1.94 to $2.58, to fund a $198.6 million budget for the coming fiscal year.
With City Council members very reluctant to approve such a large tax rise, the mayor then proposed a tax increase of “only” 39 cents per $100 of assessed property value – to $2.33.
Were taxpayers “relieved” because a huge tax increase would not be quite “so bad”?
Well, it hasn’t worked that way.
And City Council members have shown no enthusiasm for either big tax increase.
The problem, of course, is that there are many things the city needs and that taxpayers want. But whatever is provided has to be paid for.
To avoid a 64-cent tax increase in favor of a 39-cent one, the mayor said there would have to be such things as cuts of benefits for city employees 65 or older, and those who retire before age 55; no employee raises except to fix unusual situations; not hiring more firefighters and closing the Eastdale fire hall or shifting firefighters to other stations; having only one police academy; cutting staffs in Public Works, Neighborhood Services and Parks and Recreation; having reduced hours in recreation centers, closing the Frances Wyatt Recreation Center in North Chattanooga and closing the Carver Recreation Center pool off North Orchard Knob Avenue.
åNo cuts are popular, but neither is a 64-cent or a 39-cent tax increase.
The mayor, council members and taxpayers have a tough situation to face. It will be painful, whatever cuts and compromises are made.
Providing desired city services and levying taxes at any level is challenging – to individual property owners, businesses and city officials who must make the eventual hard decisions.
Obviously, “something has to give” to “get” the best results that serve the best interests of all parties who are personally involved.
Everything the city government does that costs money needs a close re-examination and evaluation.