CLARKSVILLE, TN (CLARKSVILLE NOW) – The City Council approved the first reading of the annual budget on Thursday, and it includes a 5% raise for city employees.
The operating budget forecasts revenue from taxes and other financing sources rising from $142 million budgeted in fiscal year 2024 to $155 million in FY 2025, according to city documents.
Operating expenses were $134 million in the FY 2024 budget, and they are expected to rise to $138 million in the FY 2025 budget. To help cover those expenses, the budget raises the property tax from the certified rate to $0.88 per $100 of assessed value.
Amendments proposed
A number of amendments were proposed during the special session meeting, including one from Councilperson Deanna McLaughlin to reduce a proposed general wage increase for city employees from 5% to 3%.
“The rationale behind this, although it would be nice to get everybody a significant wage increase, the 5% is basically $3.9 million of our tax increase,” McLaughlin said. “The 3% is a compromise … and it should save us a little over $2 million. Last year, if you all remember, we did do wage increases at budget time, and then we were asked to come back and do additional wage increases to get the pay scales up per market.
“I believe that if there is a situation where our conservative CFO, who conservatively estimates our revenues, I feel like there is an opportunity that our revenues come in higher than what she’s projecting. We may be able to look at that again, but at 3% it will keep employees, from what I’ve been told from the expert, it will employees competitive in their scale, while still giving a general wage increase and salary increase,” McLaughlin said.
MORE: Clarksville City Council approves setting new tax rate at $0.88, up from certified rate of $0.7488
Concerns over general wage increase reduction
Councilperson Stacey Streetman said she’s concerned how the reduction would affect the Clarksville Police Department and Clarksville Fire Rescue.
Meanwhile, Brian Zacharias said based on consumer price indexes and the rate of inflation, a 3% general wage increase would actually mean a decrease in spending power. “I don’t know in good conscience that I can support a budget that is going to give our city employees less purchasing power than they had a year ago.”
Wanda Smith told her fellow council members that for the past 10 years they’ve been handing out general wage increases, and they still lose good employees. However, she’s still in favor of the increase due to combating inflation.
The amendment to drop the 5% to 3% was voted down 6-5, with council members Zacharias, Streetman, Smith, Travis Holleman, Joe Shakeenab and Keri Lovato voting no. The yes votes came from McLaughlin, Wallace Redd, Ambar Marquis, Wanda Allen and Karen Reynolds.
McLaughlin presented a second amendment to the council that would remove $500,000 that had been designated for new drainage mitigation, to instead study the drainage mitigation in the areas of Elberta Drive and Love Drive. It was approved 11-1 with Reynolds voting no over concerns of other areas needing their drainage mitigation systems studied as well.
The city will take the second and final vote in a special session on Tuesday, June 25, at 4:30 p.m. in Council Chambers, 106 Public Square.
Correction: The spelling of Elberta Drive has been corrected.
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