Fees could go up for some services and permits as city leaders look to make up for slumping state and county sales tax revenues, Chattanooga officials said.
The almost $640,000 in potential revenue from an increase in parking fines, plumbing permits and more won’t come in time to offset a $1.5 million shortfall in state and county sales tax collections this year, city officials said Friday.
To ad-dress that, a property tax increase cannot be ruled out, though city officials will look at ways to save money first, said Daisy Madison, the city’s chief financial officer.
PDF: worksheet for new revenues
Mayor Ron Littlefield said Friday a property tax increase may be part of budget discussions in May. The city has not raised property tax rates since Sept. 11, 2001, before Mr. Littlefield was mayor.
The City Council on Tuesday is set to review 12 ordinances that would raise fees on 152 permits. Some of the fees are new. Proposed increases range from 25 percent to 900 percent.
“The city requires revenue in order to operate, and raising fees to a reasonable level is one way to do it,” Mr. Littlefield said.
The suggested increases include raising parking fines from $10 to $35, electrical permits from $10 to $35, and adult entertainment licenses from $500 to $1,000.
Mike Grant, president of the National Electrical Contractors Association, said Friday he felt the permit costs now are in line with other cities in the Southeast and that higher fees could mean a loss of jobs and fewer people wanting to move here.
“People are not going to pay to be part of this town,” he said. “It’s like we’re New York.”
Bill Higgins, owner of Bill Higgins Electric, said the largest increase he sees for himself would be paying $35 instead of $10 for a permit.
“It doesn’t seem to me just looking at it to be totally unreasonable,” he said.
Mr. Littlefield said he expects criticism from those who do not like the idea of fees going up.
“You always question any raise in anything,” he said, “but some of these fees haven’t been raised for a really long time.”
City records show that some fees last were adjusted in the 1990s, but most were last raised in 2002.
Ms. Madison said city officials probably would have looked at raising the fees regardless of tax shortfalls because of the length of time since they last were raised, but the shortfall makes it even more pressing.
Carla Prichard, president of Chattanooga Presents, which stages festivals and events, said it is never good news to hear of any increases, but she does not “think an extra $75 would break the bank.”
Events with 50 or more people would require a street closure permit payment of $100, up from $25, records show.
Chase Pendergraft, executive director of the National Electrical Contractors Association, said many small shop owners already are worried because of the recent water quality, or stormwater, fee increase. New increases just add up to more lost revenue for them, he said.
“It feels like it’s just piling up,” Mr. Pendergraft said.