FY2022 Budget Information
Mayor Joe Pitts has presented his proposed Fiscal Year 2022 financial plan for the City of Clarksville to citizens and the City Council.
In presenting his third budget since taking office in January 2019, Mayor Pitts outlined his financial priorities for the City and asked the City Council to support and fund the first phase of a comprehensive transportation and road improvement strategy.
“Transportation 2020+ -- Priority Decisions for Today, Tomorrow and Beyond” was presented to the City Council in February after 18 months of analysis and planning by an internal study team.
“The Transportation 2020+ Strategy was prepared to set our priorities for streets, sidewalks, greenways and public transportation for the near future and beyond,” Mayor Pitts said. “We need a roadmap that we commit to follow, even as we move through elections and personnel changes. Otherwise, we’ll never get where we need to go.”
Mayor Pitts is proposing a property tax increase of 20 cents to fund the Transportation 2020+ strategy. This amount will provide additional revenue of approximately $6.9 million per year to address the City’s critical transportation infrastructure needs. Today, Clarksville has a relatively low property tax rate of $1.0296, which is a point of pride but also a constraining factor as the City deals with rapid growth and dire traffic and mobility needs.
The proposed property tax rate of $1.23 per $100 of assessed value will provide critically needed resources to start solving the City’s most pressing transportation problems.
The average home in Clarksville is valued at $166,998. At the proposed rate of $1.23, that homeowner would pay an additional $83.67 per year, or $6.97 a month.
Details about the tax impact, total Tier 1 costs, a debt outlook and borrowing schedule, and project timelines were presented to the City Council at a special meeting in May. They can be reviewed here.
In the broadest analysis, expenditures projected in the total proposed budget for FY 2022 are $584,129,709. This includes expenditures in the General Fund and all enterprise funds, such as CDE Lightband, Clarksville Gas & Water and Clarksville Transit System, and other special revenue funds.
The proposed 2022 General Fund, or operating budget, anticipates total expenditures and financing uses of $122,414,689, and total revenues and financing sources of $121,807,309, with an ending fund balance in June 2022 of $24,850,840.
The proposed 2022 budget calls for a 2.5 percent general wage increase for all employees effective October 2021 to keep pace with the current labor market trends.
The preliminary budget severely limits the number of new positions created, with one new position each for the Police Department and the Legal Department.
Similarly, except for the extensive Transportation 2020 + projects, the proposal severely curtails new capital projects for every department except the Street Department.
State and Federal COVID pandemic relief monies are strategically integrated in the budget proposal. While state funding of $1.7 million has been allocated, most of the expected federal appropriation of $25.46 million remains unallocated as the City awaits formal guidance on the eligible uses of these funds.
Passage of the new budget is scheduled for June 22, and the City’s 2021 Fiscal Year begins on July 1, 2021.
REMAINING KEY DATES IN THE FISCAL YEAR 2022 BUDGET PROCESS
- Special Session, Public Hearing and First Reading, 4:30 p.m., Thursday, June 17.
- Special Session, Second Reading and Final Vote, 4:30 p.m. Tuesday, June 22.