The Red Bank Commission meeting on Tuesday night was filled with confusion and discord. At the June 1 meeting the commission was given the fiscal year 2021-2022 budget just minutes before the meeting started and it included items that would have left the city with a $708,890 deficit. It failed to pass with only Mayor Hollie Berry and Vice Mayor Stefanie Dalton voting in favor. That budget proposal included curbside recycling, pay increases and free library cards for Red Bank residents, among other things.
Another budget that had been prepared by past City Manager Tim Thornbury is the version that commissioners had expected to vote on Tuesday night, but a version that still had the large deficit was given to the commission instead. How to reject the wrong document and revise it to a budget that the commissioners expected proved to be confusing to everyone except City Attorney Arnold Stulce. He advised the commissioners of how to proceed and still make sure that the requested revisions are included in the final budget that will be passed.
A rift between the commissioners was evident during discussions about the budget. The vice mayor advocated for raising property taxes 40 percent to match the average increase in home values that were given in the recent Hamilton County reassessments. She said that would mean an extra $1 million for the city to provide service to residents. She also continues to support a curbside recycling program and pay increases that would cause spending $708,890 more than the city takes in. She suggested getting that money from reserves, despite Interim City Manager and Finance Director John Alexander repeatedly commenting that money has been reserved for the use of projects until the next tax season. The tax rate Red Bank will adopt only applies to the city portion. Additionally, Hamilton County has its own separate tax rate
Commissioner Ruth Jeno said that she had received emails with no one in favor of keeping the current tax rate of $1.34 percent per $100 of assessed value after the reappraisal factor is added in. In late August or September, the state of Tennessee will provide a new, lower tax rate for the city which will keep the amount of income from property tax that the city will receive the same as it currently is. If the city keeps the $1.34 percent rate, it effectively will raise taxes 40 percent, it was stated.
Commissioner Jeno listed other concerns. She said that Mayor Berry and Planning Commissioner Billy Cannon have been meeting with state and local representatives on TIPS (Transportation Improvement Projects) projects that are funded with both state and federal grants. These grants provide 80 percent of the expense and the city would only be responsible for 20 percent of a project. Red Bank has projects that are currently in work and others planned for the future. The commissioner said the Zoom meetings were an attempt to alter the plans or cancel projects. All of the TIPS projects for which money has already been obligated were approved by the Red Bank Commission prior to applying for the grants.
On Monday the city received a letter from the state that turned down a grant application for another signalization project on Dayton Boulevard. The Zoom meeting with the mayor and planning commissioner was held without permission or knowledge of the board of commissioners on May 28, officials said. A letter denying the application for a new multi modal grant for the signalization project was received on June 15, causing Commissioner Jeno to question the connection.
She listed many items that she said will benefit the residents of Red Bank which are included in the budget that should have been voted on Tuesday night. If it is passed, it would include hiring a mechanic for the public works department, a new brush truck, an employee to oversee the city’s recycling center so it can stay open more days and for longer hours, adjusting pay rates for six police sergeants, a new pump truck for the fire department, adding a dog park and pavilion there, a cross walk with traffic signal, a playground and pavilion by the rec center, courtroom upgrades, a generator for the police department and generous benefits packages. There is also a wish list of other projects. She said that she is not comfortable going above what each of the department heads have requested.
"Now is not the time to raise property taxes," she said. "We can always do a budget amendment later if changes are needed."
Commissioner Pete Phillips agreed, saying the many emails he has received are not in favor of raising property taxes. He said he is not necessarily opposed to raising the tax rate but not the full 40 percent. “That’s a significant tax increase. I’m not against going up some but not 40 percent,” he said. A 40 percent increase would make Red Bank’s property taxes higher than the city of Chattanooga and all other municipalities in the area, it was stated.
Commissioner Phillips said he joined Commissioner Jeno in opposing the budget that was presented on Tuesday because it was not what they had expected. He also wanted assurance that the amendments would be made when the final vote is taken. Attorney Stulce said alternative versions of the budget can be prepared ahead of time, or changes can be made verbally, specifying changes line by line. Or the changes could be made before the first vote at the current meeting Tuesday or simply vote no and start over when it is presented again.
One resident who spoke wanted a clearer understanding, saying he was confused. Another told the commissioners that their job was to communicate with each other and act professionally and that is not what she has been seeing. One lady said that she wanted to pay the higher taxes to get what was needed.
The incorrect budget that was voted on passed on first reading with the understanding that the tax rate will change and certain expenses will be removed. Voting against were Commissioners Jeno and Phillips. Voting for were the mayor, vice mayor and Commissioner Ed Lecompte. It will require a second reading and at that time will need to be revised line item by line item in order to remove the expenses that would cause spending $708,890 more than the city receives in revenue. That vote is scheduled to take place at a special meeting before June 30.
In other business former commissioner Rick Causer was appointed to be Red Bank’s representative to the Hamilton County Water and Wastewater Treatment Authority (WWTA).
A resolution was passed for disposing of bicycles and recreational equipment lost or abandoned that the city acquires. They will be refurbished by White Oak Bicycle Co-Op, a volunteer group in Red Bank headed by Blake Pierce, and be given to children or adults in need.
The commissioners voted to apply for a TDOT grant for a Rails to Trails project between Linden Avenue and Redding Road.
An existing contract between the city and Kleenco Construction was amended to add $380,742 for the construction of a retaining wall along a sidewalk.