Signal Mountain Mayor Charles Poss told council members Monday evening that he will sign Chattanooga Mayor Tim Kelley’s letter to state legislators calling on the state to relieve tax pressure on Tennessee cities and towns.
“In 2002, the state hit its revenue sharing relationship with cities and towns increasing sales tax from six to seven percent,” said Mayor Poss.
“The goal at the time was to take care of a budget shortfall but they never gave the one percent extra back to towns.”
Mayor Poss said local officials are trying to change that and take advantage of the extra one percent. He said the impact on Chattanooga would be $2.8 million and Signal Mountain would receive about $139,000. Mayor Poss said Tim Kelly has asked local mayors to sign the letter to show support.
“I’m all for it but I didn’t want to tell them yes until I asked the council,” said the Signal mayor. “Where do you sign?” replied council member Vicki Anderson.
Vice Mayor Susannah Murdock said the repeal of the Hall tax has created a new burden and they have had to make up the shortfall by raising property taxes. She said reinstatement of the former tax rate would offset some of that.
Other topics of discussion at Monday's meeting included resolving costs to improve the Mountain Arts Community Center. They need about $12,000 to replace the 21-year-old HVAC system in the cafeteria.
“We are trying to get revenue from the MACC,” said Dick Graham. “The main building is able to run but we need to fix the outside building for the pottery studio - which will make money.”
Council members also approved $33,286 to replace carpet in the Signal Mountain Library and $112,589 to replaster the Signal Mountain Swimming Pool. Contractors said the town pool has not been replaced since 2012 and before that, 1995. He said the plaster problems cause the pool to lose water which costs money.
“It's in rough shape, kids get their feet cut up on the plaster,” said the contractor. “It's time to smooth it out.”
There was an estimate of $8,000 to get a system set up for livestreaming the council meetings. Council members said they are going to get more estimates and then decide.
The council also voted on second reading to allow a brewpub to operate in the town.
The Signal Mountain Council meets again on April 11.