Clarksville, TN – The Clarksville City Council has adopted a new City budget for fiscal 2024-25 beginning July 1st, 2024, that strengthens public safety and distributes key services to provide a better quality of life for residents throughout all geographical areas of Clarksville.
According to the latest United States Census estimates, more than 180,000 residents now reside within the Clarksville city limits. The city’s population growth curve remains steep, along with the rest of Middle Tennessee.
The City is equipped to meet this challenge by adjusting the property tax rate and commercial building permit fees. Residential permit fees will not change.
The Countywide property reappraisal, which the State of Tennessee required of the city, yielded a revenue-neutral, certified City tax rate of $0.7488, and the City Council accepted a final levy of $0.88 per $100 of assessed property value.
By comparison, the City’s property tax rate in fiscal 2023-24 has been $1.23 per $100 assessed value.
Clarksville Mayor Joe Pitts, and Laurie Matta, the City’s Chief Financial Officer, said the revenue will help to fund the essential municipal requirements of Clarksville residents amid this ongoing period of dramatic growth, and increased demand for services and support.
Each penny of the new tax rate will equate to approximately $625,000 in revenue for the City General Fund.
The General Fund has projected, total expenditures of $160,067,087 in fiscal 2025. Besides property tax collections, other revenue sources for the General Fund include sales tax revenues, intergovernmental funds, charges for services, licenses and permits, and other financing uses.
A 5% general wage increase for all City employees is another key component of the new budget, as the City invests in its employees and their ability to support their families.
Based on findings from formal, independent pay studies, this pay adjustment will also help ensure that the City remains competitive and on pace with broader market trends.
Adequate pay for and retention of public safety employees is a major consideration in this 5% pay increase.
Mayor Pitts said he is grateful that the City Council adopted this new budget to keep the City moving forward efficiently and effectively.
“I am grateful the majority of the Council understood the budget process was difficult, but protected the vital City services the citizens need and deserve,” Mayor Pitts said Tuesday evening after the second- and- final-reading vote.
The City budget is comprised of 16 governmental funds, seven enterprise funds and four internal service funds.
The entire combined fiscal 2025 City budget is valued at $885,516,322.
The General Fund is the main operating account of the general government. It has 19 City departments and many other funds for other entities and governmental transfers – the largest being to fund the City’s debt service.
The City expects to end fiscal 2023-24 in a better financial position than originally projected, with a fund balance that is anticipated to be $4.8 million more than first estimated, said Ms. Matta.
“We originally projected use of $14.6 million of fund balance in fiscal 2024 for one-time expenses, and we are only going to use $10.2 million,” said Ms. Matta, “and our fiscal 2022-23 ending fund balance was nearly a half-million dollars more than we projected.”
Ms. Matta emphasized that the fund balance exists for continuity of City operations, and to mitigate financial risk.
“The fund balance is not a savings account, and it should not be used for recurring expenses,” Ms. Matta said.
New hires have been restricted in this budget. The 22 new positions will include 12 in the Clarksville Police Department; three, each, in Clarksville Fire Rescue and Building & Codes; and one new position each in the Street Department, Finance & Revenue, Information Technology, and Human Resources.
Clarksville Gas and Water Department (CGW) and CDE Lightband will each add nine new positions.
