Possible Property Tax Increase

It's three words no homeowner likes to hear... property tax increase.  But the city of Chattanooga says it's time to raise their rates.  This is still in the very early stages, it's a proposal hasn't even been drafted, and the city isn't sure exactly how much higher the new rate would be.

But while some say it's needed, others say they're already paying too much to the city.  Gary Mayo is one of many who doesn't want to see his property tax go up.  "I think our leaders need to realize they need to do better with what they've got instead of continuing turning around and asking for the individual taxpayers to pony up more money."

He says the city should get more revenue but cutting their own budgets.  "Let's face it government, whether federal, state, or locally has never been known to handle their money properly."

But the Mayor's spokesperson, Richard Beeland says they've already made all the cuts they can.  Including hiring freezes and five percent decrease in spending per department.  "To be able to operate at a level that the community expects you have to increase revenue periodically and raising tax rates is one way to do that."

Beeland says the current property rate of $1.94 has been in place since 2001.  That's nine years without an increase, which means services like the police and fire departments have suffered.  Right now, Beeland says they need about 40 more law enforcement officers on the streets of Chattanooga.  "Everyone knows we need more policemen and to hire them we need more money."

But a property tax increase must be approved by the city council.  And at least one member says he won't vote for it.  "I'd hate to see a property tax increase, we've had so many fees, stormwater fees, that's enough, we're gonna give people a rest for a while."

This issue won't even come before the council for several months.  It could be May or June before specific numbers are even released.