HAMILTON COUNTY, TENNESSEE — The Red Bank Board of Commissioners gave first-reading approval to a proposed 2026-2027 city budget that includes a property tax increase of 16 cents per $100 of assessed property value. Commissioner Harvey cast the only vote against the measure.

The proposed rate will rise to $1.29 per $100 of assessed property value. For an 1,800-square-foot, three-bedroom house assessed at $94,200, the increase will amount to an additional $150.72 per year, or $12.56 per month. By comparison, the property tax rate in Chattanooga is $1.93 per $100 of assessed value.

The general fund will receive $9,329,591 from property taxes, $1,563,886 from state shared taxes and $1,122,652 from other revenue, totaling $12,016,128. The budget includes appropriations of $12,822,425, leaving a deficit of $806,297 to be covered by the fund balance.

The spending plan includes a 2.25 percent cost-of-living adjustment for employees and provides for 84 full-time positions, one fewer than the current number. Four employees will be reclassified: the public relations manager, the IT director, the parks and capital projects planner, and the municipal planner.

The city will continue to provide a tax relief program for qualifying citizens. Last year, 130 residents participated in the program. Red Bank is the only municipality in Hamilton County that offers a tax relief program for citizens who qualify. Beginning in December 2026, the city will end its subsidy of CARTA's Care-A-Van transportation service.

The budget ordinance passed its first reading and will require a second and final vote at the commission meeting on June 2.