CHATTANOOGA, Tenn. (WDEF)- Will your property taxes go up?
That will depend on what the Chattanooga City Council sets this year’s property tax rate.
$23.6 million dollars is the amount the Kelly administration says the city needs to raise in order to fully fund first responder pay raises.
In order to get to that amount, a lot of debate broke out in City Council chambers on Tuesday.
Proposals on what Chattanooga’s property tax rate should be set at varied significantly.
Chattanooga Mayor Tim Kelly proposed a property tax rate that would be at $1.99.
This is 26 cents lower than Chattanooga’s previous adopted rate in 2021 which was $2.25, but 44 cents higher than the certified tax rate of $1.55, which is set by the state of Tennessee.
According to the mayor, this means the average Chattanoogan would see a bit over a $400 dollar property tax increase on average.
Mayor Kelly said, “In our proposal, the average household in Chattanooga, it costs another $1.23 per day, it’s a Happy Meal a week, and we think that considering the strategic priorities we have overall, that is something we can afford as Chattanoogans to keep pushing Chattanooga forward and fund those essential raises for police and fire.”
However, there were proposals above and below that number.
Councilwoman Jenny Hill had her own proposal where she wants to cap any increase to just $1.67 at the most, with over 10 ten million in cuts to increase efficiencies.
She in particular wants to cut the budgets of Community Development by 15 percent, City Council by 10 percent, and everything else that is non-essential by 5 percent.
Hill said, “When everything is a priority, nothing is a priority.”
Meanwhile, Councilman Dennis Clark wants to readopt the 2021 adopted tax rate of $2.25, saying that the city would squander its growth by not doing so.
Clark said, “We’re not just raising property taxes, we’re saying, “You know what guys, we’re so sorry. We didn’t catch up on inflation! We’re sorry that we didn’t fix the sewer settlement issues that’s happening all over your streets because we’re so cheap!”… I want to uphold the rate and cut. That’s the type of conservatism I believe in. I think that some of y’all are conservative and need to go further.”
The main discussion surrounding these rates is giving first responders a pay raise.
Right now, Chattanooga Police Officers start off at $48,000 per year, which is lower than most surrounding agencies.
The Department shared a resignation letter from one officer on Monday, who left to go join the Hamilton County Sheriff’s Office due to pay.
Police Chief John Chambers worries more could be next.
Chief Chambers said, “Five police chiefs and one sergeant who are looking to go to another agency right now that are basing their decision on the outcome of this decision.”
He added it’s critical to do this now because of potential raises of competing departments.
Chief Chambers added, “Hamilton County is at $56,000 with another increase coming by the end of this week, Sheriff Garrett will announce they’re going up to $60,000.”
The Chattanooga City Council announced they will have another budget session hearing next Tuesday.
