Something to be Thankful For: Brentwood's Financial Climate

From the City of Brentwood:

November 9, 2020

Brentwood is one of the most desirable communities in Tennessee in which to live and work. The City realizes that a strong financial position is essential to the success of our community. Having a broad, diverse tax base is important, but spending the public’s money wisely while keeping taxes as low as possible is also a priority.

Highlights of the City’s financial position:

• No increase in the City’s effective tax rate for 30 consecutive years. The actual tax rate has declined from $0.89 to $0.36 per $100 of assessed value of property due to property reappraisals.
• Continues to be one of the lowest effective property tax rates of any full-service municipality in the State of Tennessee.
• Annual city property tax bill averages $540 (home valued at $600,000) which equates to $1.48 per day.
• City taxes represent only 14% of your annual property tax bill. The remaining 86% are assessed by Williamson County.
• Brentwood’s General Fund is not heavily dependent on any one revenue source: Local sales tax – 39.3% Property taxes – 30.4% State shared revenue – 11.5% Other sources/fees – 18.8%
• General fund reserves have increased from: FY 1991 - $600,000 FY 2020 year end - projected unassigned fund balance to be $43.4 million. The city never operates in a deficit
• Highest bond rating possible from Moody’s Investors Services (Aaa) and Standard and Poor’s (AAA).
• Provides expanded services with fewer employees. The city will have 6.31 full-time employees per 1,000 residents in FY 2021 versus 8.54 per 1000 in FY 1991 or 26% less. Staffing at the 1991 levels would cost the taxpayers an additional $10.3 million annually and require 83% increase in the city’s property tax rate, a corresponding $10.3 million or 25% cut in existing City services, or a combination of tax increases and service reductions.
• National Awards: For 33 and 27 consecutive years respectively the GFOA Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award.

Read more about the City of Brentwood in the latest City Newsletter

Learn more about the Finance Department

This press release was produced by the City of Brentwood. The views expressed here are the author’s own.