Image Credit: Mayor Joe Pitts / Facebook & City of Clarksville
The Tennessee Conservative [By Olivia Lupia] –
After instituting a 4-cent tax rate increase during the last budget cycle, the City of Clarksville’s proposed budget for fiscal year 2026-27 not only includes another 33.7% property tax increase but also seeks to pull back a portion of the sales tax shared with the local schools.
The city is proposing to increase the property tax rate 31 cents to $1.23 per $100 of assessed value, with Mayor Joe Pitts claiming growth, inflation, and the “critical need to support city government operations” as contributing factors to the increase in a letter to the City Council.
For the new fiscal year, the mayor’s proposed budget contains $187.8 million for the general fund and potential allocations for starting pay raises for firefighters and police officers and an overall 3% wage increase for all city employees.
“We must continue investing in our employees or we will face the very real issue of increasing vacancies across every department, especially in our police and fire rescue departments,” Pitts said.
There will also be an “unavoidable increase” in health insurance contributions to the city’s health fund which will be absorbed by the city and, under the guidance of the city CFO, a “hard, but realistic view” of capital projects as the city looks to implement a 10-year planning cycle instead of the current five-year approach.
Pitts also said that while several capital projects are being requested, they, along with many other already planned projects, will be and have been suspended.
And aside from the hefty property tax increase, the city is also looking to recapture some of the sales tax collected, beyond what the state requires, that is paid to the Clarksville Montgomery County School System (CMCSS) by Clarksville, potentially leaving the school system with a $3.5 million deficit.
“This will help offset the cost of some of the services we are providing, including crossing guards, installation of sidewalks, and other infrastructure improvements. This is, without a doubt, the most difficult part of this budget,” said Pitts.
“Property tax revenue comprises less than one-third of the revenue for our city. Sales & Use taxes and state-shared revenues account for the next two-largest segments of budget income. While Sales and Use taxes are steady, the state of Tennessee has projected slow-to-no growth of this important revenue stream for the city, having a dramatic impact on our operations.”
CMCSS School Board Chair Chris Lainer is pushing back on the new proposal, writing on social media, “They say a budget shows what a community truly values. If we move forward with this cut now, the story we are telling is that we are willing to pull the rug out from under our students after the plan for their success has already been set in motion…When we approved the budget with the $3.5 million included, we gave the school system the green light to hire teachers, buying supplies, and building programs to help all our students succeed. To take that back now puts the district in an impossible situation.”
“The timing of this proposal is perhaps its most damaging feature. We have already moved past the planning phase. We are recruiting great educators and support staff, schedules are being set, and promises have been made to our families. To withdraw funding from CMCSS while we approved a 2% cost of living wage increase along with the Montgomery County Government and for the City of Clarksville to propose a 3% cost of living wage increase is disparaging.”
And while the mayor says he is sympathetic, he stands resolute that the city’s financial situation is dire enough to warrant the pullback. “For 45+ years we’ve given the school system a little extra. It’s painful, I wish we didn’t have to but that tells you exactly where we are as a city government. We have to build roads, improve infrastructure. We’ve got to pay our people more. As we grow, quality of life is important, parks, public safety has to be improved,” Pitts said in an interview.
Clarksville residents are not the only Tennessee residents bracing for hefty property tax increases as many Nashville businesses may be forced to close their doors due to triple digit parentage increases, which Mayor Freddie O’Connell has dismissed as “a cost of doing business” associated with the rise of property values in the city.
And Williamson County homeowners have also received a shock after their most recent property reappraisal notices increased the median property value increase in the county by 66.6%, prompting concerns of an impending tax increase.
Increasing cost of living and rising taxes continue to be a concern for constituents across the state, and despite promises to do so, the legislature did not pass a single grocery or sales tax exemption or holiday during the 2026 session. This letdown could ultimately effect primary elections as all 99 Representatives and half of the Senators are facing reelection this cycle and voters may be looking to implement a change that directly impacts their day-to-day living.
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
