Image Credit: Montgomery County, TN Government & Canva.
Article by Olivia Lupia, Tennessee Conservative News –
Amid continued financial strain the City of Clarksville may consider budget restructuring, looking to negotiate with the Montgomery County Commission to revise the spilt of the local option sales tax.
The Commission is also considering new zoning regulations which would create regulations for data centers.
The Councilman responsible for the tax presentation said he did a deep dive into the city’s budget to figure out “why our growth isn’t paying for our growth.” He noted this year’s budget spends almost $7 million more than the city brings in, after the council raised property taxes by 9 cents and made $9.2 million in cuts.
He said the city is covering the difference with reserves for now, but by FY 2031 that gap could grow by $25 million if unaddressed. “Even in the most optimistic of scenarios, the city is at the edge of a fiscal cliff that cannot be avoided under the current budget structure,” he said.
One of his proposed solutions is to readjust the amount of local sales tax the city keeps compared to the county.
Currently Clarksville keeps about 24 cents of every sales tax dollar collected in Montgomery County. The proposition would increase that to 35% to theoretically close the gap without a rate increase and keep up with the city’s growth.
Newly elected Montgomery County Commission Chair Rashidah Leverett attended the presentation, though she reiterated that “any county participation would require appropriate discussion with [County] Mayor Golden and my fellow county commissioners… I was there to listen and learn.”
But County Mayor Golden is not as optimistic as the City Council seems to be, stating the move would shift the burden to county residents. He also said that the existing sales tax agreement was approved by a voter referendum, specifically to help support local schools and fund teacher salaries.
“Currently, visitors and people who live outside Montgomery County generate more than 30% of that revenue, helping offset the cost for local residents. Changing this agreement would shift 100% of the tax burden to our residents,” Golden added. “We work hard with department heads and elected officials to be fiscally responsible with the funds we’ve been entrusted with. Removing these funds from the school system could result in a county property tax increase, cuts to County and Clarksville Montgomery County Schools services, or both.”
Nothing firm has been established, but the City Council may entertain an official proposal to enter negotiations with the county next month.
Meanwhile, the County Commission was also recently introduced to a resolution proposing updates to zoning regulations that would establish new rules for data centers. The proposal includes seven items any future applicants for data centers must abide by to receive Board of Zoning approval.
Those measures include restrictions like a minimum and maximum property size, a minimum 100-foot setback, a noise plan, written confirmation that water and electricity can be supplied from local providers, and the responsibility by the applicant for all infrastructure improvements to receive utility services.
After explaining the regulations and taking questions from commissioners, Regional Planning Commission Director Jeff Tyndall said that pending feedback, the resolution will add protections to for the community and be taken to the City Council soon.
The County Commission will continue its discussion on the new regulations and possibly take a vote at their next formal meeting later in the month.
Sources:
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.
