A great many Chattanooga taxpayers — and City Council members — have been shocked by the proposal to raise Chattanooga property taxes 64 cents per $100 of assessed property value — from $1.94 cents to $2.58.
Why is such a big tax increase suggested, especially in a time of general economic crisis?
It is explained that more than one-fourth of the suggested big tax rise would be needed to provide $8.9 million to cover the rising cost of maintaining existing city employee and retiree health and pension benefits.
Everyone surely wants to provide adequate pay, medical care and promised retirement benefits for city employees. But when promises are made, the ultimate costs may be overlooked.
It is reported that the health and retirement benefits for city employees would require about 17 cents of the suggested 64 cents of the proposed property tax increase.
That would leave 47 cents of the tax increase for “other things” in the city budget. What might City Council members whittle away to lessen a horrible tax increase blow?
They have an unenviable job explaining in detail and selling the taxpayers on any big tax increase. What might be cut?
There is no “easy time” for a big increase in local property taxes. It’s harder during recession and high unemployment.
City Council members face a very difficult job deciding what to spend and what not to spend — and convincing taxpayers, who have similar personal choices to make. Our officials should give taxpayers some very detailed discussions and explanations. It may not be satisfying, but at least it could be informative.