makes cents for hendersonville
Let's harness the power of commerce and tourism in our city!
makes cents for hendersonville
Let's harness the power of commerce and tourism in our city!
Let's harness the power of commerce and tourism in our city!
Let's harness the power of commerce and tourism in our city!
Shall the Hendersonville Investment in the Future Act which increases the City's sales tax by a half a penny per dollar for 10 years for the purpose of funding public safety, infrastructure, parks, and paving be approved?
"Tax" can be a pretty scary word, but before you scroll away, get educated about the Hendersonville Investment in the Future Act -
a less expensive option for Hendersonville residents to fund the critical future needs of the city.
Public Safety, Infrastructure, Parks, and Paving
Just like maintaining your house or car, Hendersonville has projects to maintain and improve. It's time to upgrade our city with the help of those who come to visit and shop!
Hendersonville Alderman Eddie Roberson provides some insight into the city's situation and options
Senior Citizens of Hendersonville President/CEO, Julie White, shares her support of the Hendersonville Investment in the Future Act with News 2 WKRN.
Shall the Hendersonville Investment in the Future Act which increases the City's sales tax by a half a penny per dollar for 10 years for the purpose of funding public safety, infrastructure, parks, and paving be approved?
Yes or No
Hendersonville voters will have an opportunity to generate funds for public safety, parks, infrastructure, and paving when they vote in the March 5th election. The ballot will include a referendum to raise the city's sales tax rate 1/2 a penny to be similar to many other cities nearby.
If the referendum passes, the City will collect $9 million more in sales tax each year. The money must be accounted separately and transparent from the city's general fund and be used in the four areas earmarked above.
The sales tax increase will expire after 10 years per the Sunset Provision.
Alternative #1 to the half-cent increase: 39% increase in property taxes
The additional property tax will cost the average Hendersonville household $277 per year. The increased sales tax likely would cost the average household $74.
Both options generate $9 million for city services. The reason for the dramatic difference--$277 versus $74--is that so many people who pay sales tax in Hendersonville do not live in Hendersonville.
If the sales tax is increased, everybody who shops in Hendersonville will pay the higher sales tax rate, including people from Goodlettsville, Gallatin, Davidson County, and surrounding areas.
Many of those surrounding areas already have higher sales tax rates, including Macon County, Robertson County, Wilson County, Williamson, Rutherford County, Dickson County, Clarksville, Ashland City, and White House.
Alternative #2 to the half-cent increase: Reducing Services
If the city has to reduce services, the fire and police departments would likely take the biggest hit because they are the two largest departments of the City. (See the pie chart above.)
The two departments make up more than 75 percent of the city's total budget. Most of their budgets are salaries for firefighters and police officers.
Why Now?
During the past few years, inflation has caused increases in the cost of projects, services, and labor.Currently the City pays $12.91 per house per month for once-per-week, back-door, trash service with unlimited bulk-item removal. Waste Pro's bid for the same service next year is $31.45 per house.
The city board recently provided 13 percent raises to most police officers, but many are leaving for higher pay. Current pay is not attracting sufficient qualified officers.
Insurance, police cars, fire engines, copy paper, and so many other needs have increased in cost to the City.
The city's board of mayor and aldermen (BOMA) set a budget for the current year that fits within the revenue expected to come into the city. That required cuts to city services. The BOMA has
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Remarks by Alderman Roberson before BOMA unanimously approved the referendum to request citizens to vote on a half penny sales tax for 10 years.
Thank you, mayor. The Hendersonville Investment in the Future Act requests our citizens to self-determine by referendum whether additional revenues are allowed for critical investments in the city for paving, public safety, infrastructure and parks by increasing the sales tax by ½ penny per dollar. In real world terms, this small increase would result in an additional 25 cents on a $50 meal at a Hendersonville restaurant. This increase would not affect the cost of gasoline.
The latest budget projections and revenue estimates along with needed critical expenditures for next fiscal year, forecasts a budgetary storm for the city. We have seen this coming and our first response appropriately has been to economize by cutting costs and services. We have reduced garbage service to once a week, we have placed a hiring freeze on new positions, we have cut paving by 35%, we have not funded replacement vehicles for our First Responders, we have not funded new fire fighters for soon to be opened Fire Station #7, and we have not added new capital projects to deal with an aging and inadequate infrastructure. But these cuts alone may not be sufficient for the coming storm because they don’t account for an expected 100% increase in the cost of garbage service next year and the overall effect of inflation in all purchases made by the city. It is my opinion that even greater cuts, some of which are painful to even mention, must be made next year if we don’t act. And since almost 60% of our operating budget and 71% of city employees is for public safety, the cuts I reference could not entirely exclude our First Responders, in my opinion.
Ravaged by high inflation along with the pressing need to address our aging infrastructure and our snarling traffic, the path is clear. And even with the most optimistic sales tax revenue projections for COSTCO, the budget outlook is still dire. Unless we act soon, next year, we will be faced with a Hobson’s Choice by either having to increase property taxes or drastically further reduce city services. I don’t like either of these options. Since being an alderman, I have never voted for a property tax increase and I don’t want to start now. A property tax increase is not the solution.
But there is another way forward. Cities have basically two ways to address revenue shortages – a property tax or a sales tax. More and more cities and counties are electing a small increase in sales tax to address critical needs. For example, 57% of counties and 69% of cities in Tennessee have elected for a small increase in sales tax. But for us to consider a sales tax will require us to act quickly for State law requires increases in sales tax to be approved by the people in an election. In fact, the citizens of the city of White House a few years ago passed such a referendum to increase their sales tax.
The Hendersonville Investment in the Future Act has 4 distinguishing features that I would like to point out to you. First, it promotes participatory democracy by placing the decision in the hands of the electorate rather than politicians. It is a variation of Home Rule. Second, it earmarks the revenues generated from the increase to paving, public safety, infrastructure and parks. These are the only areas the new revenue can be spent. Third, the Act outlines a “Sunset Provision” meaning that the increase goes away in 10 years unless reapproved by the city voters. Politicians can’t extend the life of the sales tax beyond 10 years, only the people will have that authority. This unique feature, helps ensure accountability and makes clear this increase is not perpetual but limited in duration. Fourth, the Act ensures transparency. Each year after approval, the mayor in his/her proposed budget to BOMA must specify how the increase will be appropriated.
So, what are the possibilities for a better Hendersonville if the Hendersonville Investment in the Future Act is approved by our citizens.
With this Board’s approval, it will be up to our citizens to determine the future of our city. Our job will be to equip our citizens with the accurate information as to the long-term benefit of voting for the increase and the consequences for voting against the increase. It is basically two different visions for our city. And remember, tourist and non-city residents help contribute for city services through a sales tax. As with Term Limits, I have confidence our citizens armed with the facts and understanding the consequences will vote that our city is worth the investment for the future. I humbly ask for this Board’s unanimous positive vote to let our citizens decide what kind of future we will pass on.
In closing, recently my wife and I went to lunch at a local Mexican Restaurant. The bill for the meal was $21. If our citizens approve the referendum, the bill for the meal would have cost an additional 10 cents. I say let the people vote on the future of our city.
Thank you for your attention.
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Hendersonville Standard Article
Tena Lee - Main Street Media - January 10, 2024
Please reach us at makescents37075@gmail.com if you cannot find an answer to your question.
It is a referendum to increase the city sales tax by half a cent (from .0925 to .0975) per $1 spent for 10 years.
No. If the increase passes, Hendersonville will be the only city in Tennessee with a 10-year "Sunset Provision" for a local sales tax increase. After 10 years, the local sales tax rate automatically returns to where it is today. That is written in the referendum.
After 10 years, the local sales tax rate automatically returns to where it is today. That is written into the referendum and cannot be changed by the City board.
No, state law requires that cities reduce their property tax rates when the property is re-appraised. All property will be re-appraised this year. When that is finished, the city’s tax rate will be automatically reduced. The last time we had property reappraised, the property tax rate automatically was reduced from .7580 to .5931. As our property values increased, the tax rate decreased. That prevented an automatic increase in property.
In Tennessee most items sold in a retail environment are taxed by the state and local governments. There are several exceptions: medical supplies, certain food items, items which are used in the process of packaging, and fuel such as gasoline and diesel fuel.
Like the current tax rate in every city in Tennessee, the local sales tax applies to groceries. However, the city board of mayor and aldermen do not want the increase to apply to groceries (current grocery tax rate is 6.25%). BOMA have asked the Tennessee General Assembly to exempt groceries from the 1/2 penny increase to maintain the rate of 6.25%.
No. Gasoline and diesel fuel are taxed by the State of Tennessee, not local governments.
Tuesday, March 5th, 2024.
Within 90 days, likely sooner. We have to allow time for the Tennessee Department of Revenue to contact all the businesses in Hendersonville to begin charging the higher rate.
Every registered voter eligible to vote in Hendersonville city elections is eligible to vote on this referendum.
The City is facing a choice of an increase in property tax, a small increase in sales tax, or a significant decrease in city services (mostly fire and police). Property tax takes money only from Hendersonville residents. The sales tax increase would take money from people who live outside Hendersonville but shop inside Hendersonville.
Public Safety, Infrastructure, Parks, and Paving.
The Board of Mayor and Alderman. They will be required to report to the public how the money is spent each year.
The County and City make decisions about property taxes independent of each other. They provide completely different services with the money they collect. The county can increase property taxes whenever the county commission wants to. To increase the county sales tax, the whole county would have to pass a referendum.
Inflation mostly. Mayor Clary published this video to Facebook in 2023: https://www.facebook.com/watch/?v=1034675640907331
No. Many of the surrounding cities have already increased local sales tax rates to the higher level. Also, it doesn’t make economic sense for people to drive several miles out of their way to save 50 cents per $100 they spend.
Currently the average Hendersonville household pays an estimated $712 in sales tax. If this passes, those households will pay an additional $74 per year. By comparison, the average household pays $1,370 in city property taxes. If the city increased the property tax rate to generate the same amount of revenue, households would pay an additional $277.
In a nutshell the difference is caused by who is being taxed. The sales tax is paid by everybody who spends money in Hendersonville. The property tax is paid by only Hendersonville property owners. The referendum is really this question: Do we want to pay for improvements to our city alone or do we want other people to help? If you want other people to help, you would vote YES.
The city board is considering impact fees and might enact them before summer. However, the revenue is not as high as what the sales tax increase would bring. Last year builders took out 265 permits for new houses. If we had charged each of them $3,000, we would have generated almost $800,000. That will help, but it won't solve our inflation problem. A higher sale tax will generate $9 million.
It’s hard to tell because we don’t know how many houses will be built in the coming years. Due to land that was rezoned during the past couple decades, houses are going to be built. Currently Hendersonville has enough vacant land to allow 3,500 more homes here. They might be built sooner, later, or never. Once property is zoned for homes, it’s incredibly difficult or expensive to turn back the clock. Those property owners have a right to build new houses. During the past three years, the city board has really put the brakes on rezoning requests to allow more homes and apartments. The bigger problem is inflation. The costs for everything has gone up during the past three years, but city property taxes haven’t. The board could raise property tax but would prefer to see the sales tax rate increased.
Public safety refers to the well-being and protection of everyone in the community. This includes things like preventing crime, responding to emergencies, and making sure that buildings and roads are safe to use. Supporting those who protect and maintain service standards in our community is critical.
New Fire Engine - $800,000
New Fire Truck - $1,900,000
Infrastructure is the physical structures such as buildings, roads, power lines, railways, drainage, etc that facilitate commerce, transportation, and quality of life in a given area. It is the foundation of our community that we come across in our daily lives. While the state and county maintain certain features, most of the responsibility of maintenance and improvement is the city's.
Exit 8
Traffic Signal Synchronization
Walton Ferry Road /Old Shackle Realignment
New Shackle Island Road
Drakes Creek/Stop 30 Intersection
Fire Station #7
The health of community is reflected in its members' activity and engagement levels. Parks are more than just sports. It is about holding events to celebrate life in Hendersonville. It is creating spaces for everyone to enjoy and be active. Without green space, recreation, competition, and opportunities to get out and meet neighbors, where is the community? Hendersonville has a wonderful Parks and Recreation tradition established and we want to keep it that way! https://www.hvilletn.org/194/Parks-Recreation
Drakes Creek Park Maintenance Shed
While paving may fall under infrastructure, in most communities it gets its own focus. Having reliable and safe roads is a hallmark of an established and healthy community.
First Day of Early Voting: Wednesday, February 14th
Last Day of Early Voting: Tuesday, February 27th
Election Day: Tuesday, March 5th
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