Cookeville City Council passed on first reading a ten cent property tax increase for the new fiscal year Thursday night.
Council also approved the new budget on first reading.
The current general fund budget sits at a deficit of some $5.1 million, to be made good by the city’s fund balance. That would drop the balance below $30 million. Finance Director Brenda Imel called that a strong balance.
Total revenue is budgeted some $36.4 million. That includes a projected two percent increase in sales tax revenues, the city’s number one revenue source. That number is budgeted at $19.2 million.
“It looks like we’re doing well, but most of that is inflationary,” Council Member Ali Bagci said.
The new budget includes pay scale adjustments as well as marketplace adjustment for emergency personnel. The city is focusing efforts on increasing starting salaries for police, firefighters and paramedics. The total personnel increase is some $2.5 million citywide for the some 473 total fulltime employees.
Salaries and benefits make up over 78 percent of the city’s budget.
Capital expenditures total some $6.2 million in the new year include seven police patrol vehicles, a new ladder truck for the fire department, and design work for customer service area upgrades at City Hall. A stormwater rehab project on Spring Street is also part of the plan.
The city plans to do two additional bond issues in the new year, including rebuilds of two fire stations, renovations to CPAC, the West Stevens Street widening and and the next phase of 10th Street widening.
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