Germantown’s $204.8 million Fiscal Year 2024 budget is highlighted by investment in public safety, schools, infrastructure and parks.
From drainage to property tax increases to the Wolf River Greenway extension, the new budget includes funds to operate the city while planning ahead for future developments.
The Germantown Board of Mayor and Aldermen will hear the third and final budget reading June 26. Once approved, the budget will go into effect July 1.
Here are three things to know about Germantown’s FY24 budget.
How much will Germantown increase its property tax rate?
Germantown will raise its property tax rate by $0.165 to maintain a balanced budget over the next two years, the city announced.
The increase in Germantown would move the city’s tax rate up from $1.6732 per $100 of assessed value to $1.8382. For a Germantown property valued at $450,000, owners would see an annual tax increase of about $186, or about $15 monthly.
Germantown has not increased its property tax rate in six years, but city officials felt the push from the recent fluctuations in costs of personnel, supplies and equipment maintenance.
The city said the increase would provide funding for public safety investments, including replacing police vehicles, handguns and infrastructure for the city’s public safety radio system.
About 54% of Germantown’s $72.3 million general fund budget is sourced by its property tax revenue.
Germantown employee raises
Germantown will increase city employee wages by 6%.
“The (human resources) department conducted a market analysis back in February,” Germantown Finance Director Adrienne Royals said. “One of the factors that was decided was that we are behind 8% in wages.”
The wage increase will impact the budget by about $1.7 million.
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Capital Improvements Program
Germantown budgeted $16.6 million for the Capital Improvements Program, which includes funding for the 3G’s (Germantown Elementary, Middle and High schools), infrastructure, drainage and park investments.
Germantown will pay $833,000 every year for next the next six years, as part of the acquisition of the namesake schools from Memphis-Shelby County Schools.
The city also plans to use $2.3 million on major roadwork including milling and overlay off Forest Hill Irene and Wolf River Boulevard, Poplar Avenue culverts replacements and the McVay Road Bridge replacement.
The budget also includes work on Germantown Community Theater’s exterior improvements, City Hall Americans with Disabilities Act (ADA) parking, traffic signal additions at Houston High School, and drainage for Cedarwood, Mimosa and Green Knoll.
Parks in Germantown will see expansions and changes as well, with the city setting aside $3.9 million for that.
The money will go toward the Wolf River Greenway expansion, a Bob Hailey access bridge replacement, Cameron Brown Park infields and pickleball court expansions with restrooms.
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Dima Amro covers the suburbs for The Commercial Appeal and can be reached at [email protected] or on Twitter @AmroDima.