Cookeville City Manager James Mills proposed a 10 cent property tax increase in the new fiscal year budget.
The increase would create some $1.17 million in additional revenue or roughly $117,000 per penny.
Mills told city council members during a Tuesday work session the property tax increase would raise taxes on a $200,000 home by roughly $50.
The property tax increase would help the city with increased costs related to both increasing needs and services as well as inflationary pressures.
The budget plan being shared with council members includes $2.533 million in pay raises for city employees. The majority of that will be major improvements to police officer and firefighter salaries.
Mills said the work done to improve employee salaries in recent years means the budget for salaries will have increased by some $4 million annually.
Cookeville’s last property tax increase came in 2019 when the city increased its property tax rate by 15 cents. Taxes increased five cents in 2012, eight cents in 2008.
The post Cookeville Proposing 10-Cent Property Tax Increase In New Budget appeared first on News Talk 94.1/AM 1600.