Cleveland City Council Votes 4-2 To Pass A 46-Cent Property Tax Increase

  • Monday, July 24, 2017

The Cleveland City Council, with scant public notice, voted 4-2 on first reading on Monday afternoon to approve one of the largest property tax increases in the city's history.

Richard Banks, Bill Estes, Tom Cassada and Vice Mayor Avery Johnson voted for a 46-cent property tax boost.

Opposed were Charlie McKenzie and David May.

Dale Hughes and Mayor Tom Rowland were absent due to illness. The mayor is not a voting member of the council, but he can veto actions.

The final vote is expected in August.

The new certified tax rate (after the recent reappraisal) is $1.60. The increase moves that to $2.06 per $100 of assessed valuation.

Vice Mayor Johnson said the city perhaps years ago should have been passing small tax increases rather than catching up all at once. He said, "It's a hard decision, but we can't keep holding off. We are getting behind on a whole lot of things."

Councilman Banks said, even with the new rate, that Cleveland will have one of the lowest tax rates of cities across the state that operate school systems.

The increase, among other things, will help the city build a new Candies Creek Cherokee Elementary School on Georgetown Road, it was stated. Work on the school is set to start soon.

It also will boost fire and police as well as emergency personnel, it was stated. Councilman Banks said Cleveland has an increasingly serious gang problem.

He noted that he is friends with almost all of the nine citizens who spoke against the hike. He said, "We're at a crossroads in Cleveland."

The increase is also to be used to man a new fire station and improve several busy intersections. 

Officials said Cleveland citizens had outlined desired improvements in a series of public meetings and in a survey. 

Several members of the audience said they did not oppose an increase, but said this was too much at one time. 

One speaker said it was a 28 percent increase. He said the effect on him was worse since his property values went up significantly under the reappraisal. He said he would have to raise rents about $20 a month to try to keep up, but he said that may cause some renters to leave. "This really hits at a bad time," he said.

Gray Epperson projected the increase would cost him some $10,000.

Tom Robertson said, "Every little bit affects the small business operator." He said of city services and infrastructure, "I think it's fine just as it is."

Tucker Duncan said voters in the next election would pay attention to who supported the tax increase.

Joe Mason, the chief financial officer for the properties of the county's largest landowner, Allen Jones, said he can only raise rents 2-3 percent a year. "It will take 12 years before we can recoup this," he said. He added, "The problem is you are doing it all at once."

He asked if any of the money was going to salaries. City Manager Joe Fivas said it would help the city meet ongoing annual step increases for a pay plan approved last year. He said this year's employee increases would be 3.5 percent.  

 

 

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