Clarksville budget jumps but tax rates stay the same

Expenses, revenues rise in draft $6.2 million package

Clarksville Town Council was presented Monday with a proposed $6.2 million town budget for the coming fiscal year, a nearly 20 percent spending increase as town departments grapple with rising costs for salaries, insurance, fuel and other routine expenditures.

Despite the spike in spending, the draft town budget contains no change in tax rates or water, sewer or garbage rates and fees.

Clarksville Town Manager Jeff Jones presented the proposed budget to council at the monthly meeting Monday night. The budget must be approved to take effect by the start of the 2022-23 fiscal year on July 1. The current 2021-22 budget is roughly $5 million.

Jones said the budget increase is driven by several factors — an 8 percent hike in health insurance premiums, rising cost of goods, services and fuel, a state-mandated minimum wage increase, an 11 percent increase in commercial insurance premiums and the need to raise the salaries of town employees.

Jones said with the current state of the jobs market, with so many openings, the town needs to finds ways to retain its workers. He is recommending a $4,000 per-person salary increase for all employees and an additional $1,000 for police officers. He is also calling for a stipend program that would be paid to police for add-on instructor certifications they earn.

Jones said he believed a flat rate instead of a percentage increase was more uniformly fair to the town staff, particularly those on the lower end of the pay scale.

The salary for head of the wastewater treatment plant will rise by 5 percent. Jones said workers who hold certified positions in this field are in high demand. With work to upgrade that facility set to begin soon, the town cannot afford to lose that person, Jones said.

General revenue projections for the coming year are expected to be better than the current year. For that reason, the town can absorb the additional expenditures without having to increase taxes or rates. Clarksville will also receive another $604,872 in ARPA funds (the pandemic-related American Rescue Plan Act).

Real estate tax revenues will likely exceed projections because real estate valuations are up seven percent, on average. With Clarksville holding its 28-cent real estate tax rate steady, the decision represents an effective tax increase, although the impact on individual taxpayers will vary depending on whether the value of their real estate holdings exceeded or lagged behind the average gain.

Meals and lodging and sales tax revenues are also expected to be higher than current levels as people return to the area for vacations.

One area where the town has seen a significant revenue decline is with personal property taxes. Tangible personal property taxes — on assets such as cars, boats and motorcycles — and machinery and tools tax revenues are relatively flat. However, business personal property valuations are down significantly, about 70 percent. Jones said businesses are having a hard time replacing depreciating assets due to supply chain disruptions.

Jones said he is recommending the town keep its current real property tax rate at 28 cents per hundred to offset some of the losses in personal property tax revenues. Maintaining the tax rate will generate about $32,000 additional revenue.

The average homeowner will pay around $35 more in annual real estate taxes.

Water and sewer consumption is returning to pre-pandemic levels, according to Jones — thus, driving up revenues. Some of that increase will be offset by an uptick in fuel, supply and service costs and the need to raise the pay for some employees to bring them up to the new minimum wage.

The Clarksville Volunteer Fire Department is asking the town to help offset added costs by paying $5 per firefighter for each call answered in the town limits. Jones estimates this will cost the town $12,000. The Town of South Hill has for several years paid its volunteer firefighters $10 for each call they answered in the town limits.

Projects planned for the coming year include installation of public bathrooms and a new garden in the pocket park at the corner of Virginia Avenue and Fourth Street. The town office also wants to finish upgrades to financial software, and begin construction on a new office/restroom building at the Clarksville Marina.

ARPA money will be used to purchase turnout gear for the fire department, make interior renovations to Town Hall, purchase a new lawn mower, weedeaters and a dump truck with a snow plow, upgrade some sidewalks around town, install new siding on the press box at Robbins Park and upgrade the infield, install bleachers at the basketball court near Robbins Park, make additional repairs to the town dock, purchase new Christmas decorations and enhance the small park on Fifth Street near the shoreline. Jones estimated the total costs for these projects to be around $400,000.

Another $150,000 in ARPA funds would be set aside to begin work on the Cove Project. The Cove Project, which has been in development since the mid-‘90s, is a reimaging of the downtown waterfront — with a municipal pier that will provide a convenient point for boaters to pull up to downtown Clarksville’s lodging and entertainment venues, Buggs Island Brewing, McDonalds, Bridgewater Bar & Grill and The Clarion Pointe Hotel and Quality Inn.

A second phase would fill in the cove that runs between the north side of the downtown Highway 58 Business Bridge and the Clarksville Lake Country Chamber of Commerce to create a park overlook area.

In other business, Jones announced that the Clarksville Lions are holding a Scavenger Hunt fundraiser in downtown Clarksville on June 18. Teams of two — one adult and one child between the ages of 4 and 12 — will search for clues along Virginia Avenue in search of specific items. Throughout the day there will be giveaways, story time and prizes for the first team to find all of the items being scavenged.

The cost is $8 per team in advance or $11 on the day of the event. Registration can be done in advance at the Clarksville Library on June 13, Town Hall on June 14 or the YMCA on June 15.

The dilapidated building that once housed the Blue Collar Café has a new owner, according to Jones. He said he plans to discuss the owner’s vision for the property in the coming days.

Town Operations Director Richard Elliott said the cost of fuel is forcing the town to pause brush and leaf collection for the summer unless the debris is bagged and placed with the trash for regular collection. The town will continue to collect sticks and fallen branches, but they must be cut small enough and positioned in a way that makes them easy to collect.

Maintenance work is about to begin on the water tank by the former Russell Stover factory on Burlington Drive. It will be drained, cleaned and disinfected. Elliott said while this work is taking place, people living along Buffalo Road and near Mill Village will likely see some discoloration in their water. Alternative valves will have to be turned to reroute the water flow away from the Russell Stover tank.

Elliot said the water will be potable, even if slightly discolored. Regular water service will be restored within a week, if the weather cooperates.

Police Chief Ricky Wilkerson said several officers with the town police are pursuing additional training. Drew Jenkins is currently in Lynchburg studying to become a firearms instructor. Brent Inscore leaves in a week to undergo officer survival training and either he or Drew will follow that with CIT training to work with people in crisis. Andy Elliott is at the top gun school.

Jones said work has begun on the former Planter’s Warehouse property. Footers are being installed and other foundation work is being done.

Clarksville will hold its annual flag retirement ceremony on Saturday, June 11 at 10 a.m. at the pocket park at the corner of Virginia Ave. and Fourth Street. Jones asked anyone with old, worn, faded or damaged U.S. flags to bring them to Town Hall ahead of that date for proper retirement. The Marine Corps League will conduct the ceremony under the direction of U.S. Coast Guard Auxiliary member Mike Cuykendall.

 

One response to “Clarksville budget jumps but tax rates stay the same”

  1. Ted Dunn says:

    It is about time someone stood up and said no to taxes.

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