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The city of Morristown’s total budget for fiscal year 2024 of $68.9 million will not include an increase in the property tax rate.

During his presentation on May 12, City Administrator Tony Cox explained the revenue plan for the FY24 general fund which comprises $55,325,862 of the total budget.

Of that amount, 29% of revenue will come from current property tax – that’s less than the 35% estimated sales tax revenue. Other revenue sources for the general fund are intergovernmental at 22% and those categorized as “other” at 8% and “utility” (Morristown Utilities) at 3 percent.

With regard to property taxes, the combined rate of Morristown and Hamblen County ranks third lowest in a comparison of 18 regional cities or municipalities, including smaller communities like White Pine and larger communities like Knoxville.

When planning for a budget, Cox said the consideration is that property tax “doesn’t go down,” however, sales tax revenue will fluctuate based on the current local economy.

“Sales tax is growing in importance,” he said. “We are seeing phenomenal growth in sales tax revenue.”

The current property tax of one cent generates revenue of $106,333 for the city. In comparison, in 2016, that same one cent generated $84,000 of revenue.

Assessments of growth and property tax revenue, according to the Power Point document used by Cox during his presentation, are residential: 25% of appraised value and commercial: 40% of appraised value.

For example: growth from residential development for an appraisal of $1 million with an assessment of $250,000 results in a city of Morristown tax rate of $1.40 (per hundred) and a total tax due of $3,500.

A $1 million appraisal for a commercial property will assess at $400,000, resulting in the $1.40 (per hundred) tax rate requiring a tax due of $5,600.

The city’s assessed property values are 30% residential, 70% commercial.

With regard to proposed spending on projects, Cox included in his presentation a Use of Funds statement regarding a $10 million General Obligation Bond Issue.

The projects and their bond issue amounts are: $5 million for the new construction of Morristown Fire Department Station No. 3, $988,000 for land related to that project; $600,000 for a new Morristown Police storage building; $250,000 for a public works outdoor storage building; $100,000 for a MPD command trailer and $50,000 for signs (wayfinding).

A total of $3,012,000 is included in the proposed bond issue for the Parks and Recreation department and includes the following:

Downtown Green Upgrades $25,000

Farmer’s Market – Message Board $60,000

Fulton-Hill – 6 pickle ball courts $360,000

Fulton-Hill – Drive & Parking at Great Lawn $300,000

Fulton-Hill – Pavilions (2) $100,000

Fulton-Hill – Great Lawn power upgrade $125,000

Lorino – Lighting at Challenger and Field 5 $150,000

Lorino – Dugout Upgrades $100,000

Lorino – Football Conversion $300,000

Lorino – Irrigation on 5 ball fields $250,000

Lorino – Paving driveways through Barron Soccer Complex $170,000

Lorino – Pickleball – 4 courts with lights $240,000

Wayne Hansard – Land Purchase $194,250

Wayne Hansard – Gravel Lot $75,000

Hansard, Lorino, Popkin – Outdoor lighting links $15,000

Wildwood – New lighted mini-pitch soccer $150,000

Wildwood – Convert Tennis to lighted mini-pitch soccer $135,000

Contingency $262,750.

See upcoming editions of the Citizen Tribune for more FY24 budget coverage.