Nashville’s Metro Council closes in on final budget, with implications for the property tax

Nashville is close to finalizing its spending plan, with the Metro Council scheduled to vote on the budget Tuesday night.

In May, Mayor Freddie O’Connell proposed a $3.8 billion budget — roughly 15% larger than last year. That increase is funded largely by higher property tax bills for many Nashvillians.

But the mayor’s outline is not guaranteed. Two councilmembers have proposed alternatives.

One of these “substitute” budgets comes from the council’s budget chair, Delishia Porterfield. Last year, Porterfield introduced a plan that was unanimously approved by council in place of the mayor’s budget.

This year, Porterfield’s proposal is mostly similar to what the mayor’s envisioning — the total cost remains the same, as does the property tax rate. Differences lie in the distribution of funds: Porterfield’s proposal redirects dollars toward some of the requests made during the council’s budget public hearing, such as pay increases for Metro employees.

Porterfield’s increases that cost-of-living-adjustment, or COLA, rate to 2%. (O’Connell’s proposal included a 1% raise.) It also includes more funding for various programs — including maternal health, food assistance, emergency youth shelters and after-school programs.

In addition to Porterfield’s changes, eight amendments have also been offered by other members. These ask for increased funding for specific items, including:

• a domestic violence dispossession investigator;
• local nonprofit Neighbor to Neighbor;
• the Tennessee Justice Center;
• the Sexual Assault Safe Bar program;
• the Eviction Right to Counsel program, and;
• the Barnes Housing Trust fund.

Tax debate surfaces

The other proposal comes from Councilmember Courtney Johnston, who is proposing a lower tax rate.

The combined tax rate in the mayor’s proposal (and Porterfield’s) is 2.814 per every $100 of assessed value. While this rate is a decrease from previous years, Nashvillians would still see significantly higher tax bills — as the rate doesn’t offset the recent rise in property values. The latest reappraisal showed an average increase of 45% across Davidson County.

Johnston proposes setting the combined tax rate at 2.646 per every $100 of assessed value. This decrease would shrink the overall budget by roughly $116 million. Compared to the mayor’s proposal, Johnston’s substitute includes cuts across most Metro departments.

The council must agree on a budget by the end of the month. If they don’t, O’Connell’s proposal will take effect.