In the past week, Signal Mountain Town Manager Boyd Veal found out that $90,000 the town had expected to receive from the Hall income tax will instead go to Walden. Considering this redistribution of the tax, the projection for next year will be $60,000 below what had been planned for in the fiscal year 2017-2018 budget and used for setting the new tax rate.
The current property tax rate is $1.5684 per $100 of property value. The first reading of the new budget was passed leaving the rate almost the same, at $1.5665, which meant a 32-cent increase that would generate $960,000. Mayor Chris Howley said there were three choices to account for the loss, to increase taxes even more, to reduce expenses by $60,000 or to agree to take the $60,000 out of reserves.
Every penny of property tax means an additional $30,000 of income for the town. To make up the difference, an additional two cents would need to be added to the original 32-cent increase, bringing the tax increase to 34 cents with a tax rate of $1.5865 for every $100 of assessed value.
Mayor Howley preferred taking any deficit from reserves, saying that he believes that if too much is being held in reserves, then people are being taxed too much. Vice Mayor Dick Gee and Councilpersons Dan Landrum and Robert Spalding favored addressing the loss now by adding two cents to the tax increase. Councilperson Amy Speek said that she sees both sides.
The council approved the 32-cent increase.
The issue will be further discussed at the next council meeting on Aug. 14 at 6:30 p.m.
The school system viability committee (SSVC) had 250 responses to an online survey in the first two days it was available, said Ms. Speek. The budget proposal has been given to officials at the Hamilton County Board of Education for their assessment, as an added safety measure, she said. Mayor Howley said that with new state legislation, a big question has been resolved. It is now possible for the Town of Signal Mountain and Walden to have an interlocal agreement that will guarantee children in Walden will have a place at the new schools if the new district is created, and that Walden will have equal representation on the school board. The final report from the SSVC is expected by the end of September.
Town Manager Veal described a new credit card agreement with Suntrust Bank which is now requiring anyone who might need to use a credit card for small purchases to have a card issued to them rather than signing out a spare one. There are safeguards built in where purchases can be traced and accounts can be killed online. The total maximum limit will be $10,000. Department heads and their assistants will get the cards.
The council also discussed how to finance the new fire station and equipment for it. Steve Queener with the Tennessee Municipal Bond Fund presented options of five or seven years with either fixed or variable rates. The cost of issuance for each way will be $18,000 for the $3 million that is needed.
Mr. Veal told the council that the fire station is now out for bid, and that he expects to present a recommendation to award the contract as early as the August council meeting. He also reported that the town received a grant for around $900,000 that will help cover the cost of personnel and equipment for the first three years the fire station is in use. This is the largest grant that Signal Mountain has ever received, he said.
At the last planning commission meeting there were three issues, said Councilman Dan Landrum. The commission made a recommendation to deny the request to pave Carolina Avenue, which has been made by residents whose homes are adjacent to the unopened road. The matter will be sent back to the council. The planning commission also approved the plat for the Danbury development with the stipulation that the developer is responsible for making repairs to the detention pond to make it functional. The commercial development proposed for Cauthen Way by the Keith Corporation was not discussed but a public meeting on Aug. 9 will be held regarding the proposal. The property is currently zoned residential.
Developers of subdivisions build roads to the specification of the town, and after two years they are turned over to and maintained by Signal Mountain. The council approved a change in language to the agreement with the developers of Wild Ridge that they provide a warranty for two years after the town inspects and receives them, not two years after they are constructed.
Mayor Howley also reported that he has had a discussion with Paul Degges, the chief engineer at TDOT, about conditions of state roads coming up and through the town. He told the mayor that plans are on the books and that TDOT will make a presentation in Signal Mountain sometime this fall. He said he would help the town get on a list for road work as well as for funding.
The mayor backed the proposal from Vice Mayor Gee to update the town’s architectural design standards. He asked for language in the town’s codes to be changed to be descriptive and understandable of what the town expects buildings to look like. He said, "We call ourselves a small woodland community," and the look of the commercial district should comply. Mayor Howley said that Town Attorney Phil Noblett has made the suggestion of offering payment-in-lieu-of-taxes (PILOTs) to business owners who are willing to improve the facades of their buildings in accordance with the town’s vision. It is hoped this can be done before the centennial celebration in 2019.
The centennial committee update was given by Kyra Howell. The committee is now in the process of meeting with various organizations such as businesses, arts, churches, civic, educational, government and sports groups to urge participation in the celebration that will take place in 2019. After all these meetings, the committee’s job will be to coordinate plans from the different groups. At a meeting at the beginning of September exact dates will be determined for Founder’s Day weekend, she said. A website and logo are still under development.
The vice mayor reported on what he described as very disappointing at Rainbow Lake. A recent visit revealed that it had been vandalized with beer cans, liquor bottles, trash and fire pits scattered around. The town took immediate action to clean it up. Because town personnel go there frequently, it is thought this happened recently. Mr. Veal would like for citizens to also let the town know what is needed. It was suggested to post signs and publicize a phone number so citizens could call in right away.