GERMANTOWN, TN (WMC) - Germantown residents will see a tax increase for the new fiscal year.
The new tax rate was approved Monday night at $1.97.
Many people said the tax increase is OK with them.
A tax adjustment of $.23 doesn't sound like much, but when you look at the median home value in the city of Germantown - that could mean an annual increase of $178 in taxes.
"If you want good streets, you've got to pay for them," Germantown resident Margaret Burton said.
According to the City of Germantown memo sent to residents, the increase in taxes takes into account a recent reappraisal and the city's need to fund construction for a new elementary school.
The school has a $27 million price tag. It's one that longtime resident Burton said is OK with her.
"That's why we moved to Shelby County, Germantown, because of the school system," Burton said.
Burton has lived in the city for 31 years and hopes the new budget and tax adjustment is approved during Monday's public hearing.
Burton said an increase in taxes is a sign of progress for the city.
"It's a normal thing for taxes to go up. Maybe not as much as they are going up, but it's a normal thing," she said.
But, not everyone at Monday night's hearing agreed with the tax increase.
"It's very difficult for some of them. This will cripple some of them," one resident said.
According to the memo, the average resident would see an increase of about $15 a month.