Rarely is a substantial tax increase “popular.” But the suggestion of a big property tax increase for Chattanoogans at this time of general economic recession and high unemployment is a shocker.
Chattanooga Mayor Ron Littlefield has worked out a budget that calls for increasing the city property tax rate from $1.94 per $100 of assessed property value to $2.58.
The 64-cent tax increase proposal certainly will get the acute attention of city property owners, local businesses — and the members of the City Council, who must make the final decision.
The suggested new city budget calls for spending $198.6 million.
Why is a big property tax increase proposed? There are two primary reasons:
* One, city officials report that, aside from property taxes, city revenues from other sources have declined $8.9 million over the past two years.
* Two, the suggested new budget would expand the city Police Department, fund 128 previously frozen city employee positions, provide nearly $4 million for city employee raises, finance a youth development program to curb gang activities, increase street maintenance, establish a new recreation center at Hixson Middle School, and fund a city wireless network along with other technical improvements.
City officials also presented optional cuts such as less funding for the Chattanooga-Hamilton County Regional Planning Agency, the Chattanooga Area Regional Transportation Authority, take-home city cars, and enlargement of Police and Fire departments.
There always are numerous candidates eager to run for public offices. But those elected sometimes have to come to grips with unpleasant financial realities. Telling our citizens they need to pay higher taxes is not what elected officials like to do — and not what taxpayers like to hear.
Trying to balance public needs and public desires with the necessity of taxing can be very painful.
Proposing a big property tax increase at a time of recession and high unemployment surely will be debated by members of the City Council. Whatever the final decision, it won’t be easy or popular.