The Cookeville City Council approved a new budget with no property tax increase on first reading Thursday night.
The tax rate remains at 99 cents per $100. One cent equates to about $89,000 in revenue. 72 of that 99 cents goes to the general fund. That represents a one cent increase with the money coming from the economic development fund. This change will be a one-time move to help offset COVID-19 revenue losses.
15 cents will go to the transportation infrastructure fund while four cents goes to solid waste. Another four cents goes to debt service. Three cents will be funneled to economic development while the final penny will be used for quality of life services.
The budget projects the city will end next year with a $536,000 deficit, which will be covered by reserves. Finance Director Brenda Imel said revenues are expected to decrease by 3.5 percent in the new fiscal year.
Two more readings of the budget will take place before it becomes final.
