The town of Signal Mountain got the results of an employee compensation study just after the first draft of the fiscal year 2021-2022 budget was finished. The study showed that the town’s employees were underpaid leading to difficulty in recruiting and retention of employees. After seeing the report, the personnel committee recommended the implementation of a new pay scale. That left the council with no good choice for where to get the extra money for salary increases.
In the new version of the budget that was presented Monday night, Town Manager Boyd Veal used a compromise to fund the pay hikes, taking $396,874 from the fund balance and the rest from a property tax increase.
After recent reassessments by Hamilton County, Signal Mountain received a certified tax rate of $1.6412 which would have made taxes collected from the reassessments revenue neutral. On Monday, to fund the $8,695,699 budget, the council voted to raise that rate by six cents to a new tax rate of $1.7012 for every $100 of assessed property value.
Only council member Andrew Gardner opposed the tax increase. He said he had heard from many citizens all saying that they were disappointed with the town’s fiscal responsibility. Signal Mountain has the third highest taxes in Hamilton County outside of Chattanooga, he said.
Councilman Gardner said, "We are borrowing from the general fund as well as perpetuating tax increases. We’re not living within our means.”
Councilman Dan Landrum said that it is all about the lifestyle on Signal Mountain, which he described as above average for quality of life, property values and local services and he said he believed taxes were not high. “Services come at a price,” he said.
Council member Vicki Anderson said after people learned about the salary study, fewer told her they were against raising taxes and that they were for supporting the employees with the new pay rates. The problem for her, she said, was timing, but said she would vote for the tax increase which she believes is what is best for the town.
Vice Mayor Susannah Murdock said the increase is a return on investments. In the coming year she said she would like to examine the association with Walden and the unincorporated areas of Signal Mountain. A lot of town residents believe those municipalities reap the benefits of living on Signal Mountain but do not pay the taxes, she said. Sometimes tax increases have to be made to maintain the quality of life, she added.
Mayor Charles Poss said it would be difficult to go back to the original budget because it did not include any pay increases for employees. He supports the increase but suggested looking at options to cut spending next year, which could include cutting services and getting sports leagues and other organizations to be self-sustaining.
Both the increased tax rate and the budget passed on first reading. The second reading of the budget and tax rate will be held at the next council meeting.
Water rates will also be increasing in the coming year in Signal Mountain. It is the third of three rate increases in the last two years for the city-owned utility. Two years ago an MTAS study recommended raising rates which now are based on the volume of water used and maintaining the system. New meters have been installed, leaks repaired, pump station improvements have been made and various issues have been discovered. Now, knowing more about the system, new needed work has been identified which means additional repairs are needed. This third rate increase will get the town where it needs to be with general maintenance of the system, said Mr. Veal, "but you cannot say rates will never need to be raised again."
The council approved substantive changes to the town’s lot clearing and municipal landscape ordinance that were recommended by the Signal Mountain tree board. The change in the design standards ordinance passed on first reading. Certain materials and forms will be restricted in the construction of the exterior of buildings.
Town Manager Veal was given approval to apply for a Driver Safety Grant from Public Entity Partners. He told the council that this application is made every year, for the matching grant that promotes driver safety. If received it will be used for driver’s license checks and GPS units that are in the town’s vehicles. They are things that we do every year anyway, said Mr. Veal, but the grant will help pay for them.
When Signal Mountain hires a new administrative hearing officer, the required training will be paid by the town. The next class that is available will be Oct. 28. Tuition for the class is $359. Otherwise, the contract between the town and the AHO will be very similar to the current one.
Discussion took place about the MACC board which recently resigned in mass, then immediately joined the Signal Mountain Education Preservation fund. The SMEPF is currently running the Mountain Arts Community Center, but that does not mean there should be no oversight, said Mayor Poss. He said that the board is there and empty and needs to be filled. The mayor said that the board could oversee the SMEPF to make sure that it does what the town wants it to do, since it is providing operating expenses for the facility. Another option would be to have a liaison from the SMEPF to the council to keep it informed.
Mayor Poss said that at a recent meeting, Councilman Landrum mentioned he might be leaving the council and, if so, he would like to talk about the process of replacing him. This should be done allowing enough time for people to put their names in the hat, said the mayor, and for the town to determine the process that will be used to chose a replacement. The ordinance says the town council can appoint a replacement within 30 days of a resignation. That would save the cost of holding a referendum. Councilman Landrum said he would inform as he learns more about the job he is considering, however, he said it might fall through.