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Soddy-Daisy considers tax increase as other Hamilton County cities dip into reserves

Staff photo by Emily Crisman / Soddy-Daisy City Manager Burt Johnson, left, looks on as Mayor Steve Everett comments Thursday at a City Commission meeting at city hall on the need for the city to raise its property tax rate.
Staff photo by Emily Crisman / Soddy-Daisy City Manager Burt Johnson, left, looks on as Mayor Steve Everett comments Thursday at a City Commission meeting at city hall on the need for the city to raise its property tax rate. Staff photo by Emily Crisman / Soddy-Daisy City Manager Burt Johnson, left, looks on as Mayor Steve Everett comments Thursday at a City Commission meeting at city hall on the need for the city to raise its property tax rate.

As officials prepare to vote on next year’s budgets, some Hamilton County municipalities are dipping into reserves or considering a property tax rate increase to make ends meet, while others are using surplus revenue from previous years.

The city of Soddy-Daisy is proposing a tax rate increase of about 33 cents, a 30% increase over the current rate of $1.12 per $100 of assessed value, which is 25% of appraised value. For a $350,000 home, that would increase annual city taxes from $976 to $1,269.

Over the past 17 years the city has increased its property tax rate three times, according to a document handed out Thursday to commission meeting attendees.

(READ MORE: Soddy-Daisy not raising tax)

The additional property tax revenue would cover the recurring annual cost of $712,000 to add new positions to city staff: a human resources professional, a codes enforcement officer, three firefighters, two public works employees and a police department employee to serve as a dispatcher and records and evidence custodian.