Cookeville adopts $260.9 million FY2026 budget, raises property tax to 99 cents

Cookeville — The Cookeville City Council on Thursday adopted a $260,915,532 fiscal year 2026 budget and approved a 7-cent property tax increase, raising the city rate from 92¢ to 99¢ per $100 of assessed value.

City finance staff said the 7¢ increase is expected to generate about $862,000 in additional revenue. City staff explained that 5¢ of the increase is allocated to the general fund, 1.5¢ to the debt service fund and 0.5¢ to the solid waste fund; the overall proposed city tax rate of 99¢ is projected to produce about $12.2 million in property tax revenue.

Why it matters: Council and staff said the budget focuses on employee pay adjustments, capital projects and infrastructure while preserving city services. The package includes targeted market and merit pay adjustments for city employees, capital investments across departments, and bond-funded projects the city says are intended to support continued economic growth.

Most important details - The ordinance adopting the FY2026 citywide budget (ordinance O25 0 6 0 9) appropriates $260,915,532 in expenditures and transfers.…