The city of East Ridge has passed the 2025-2026 budget with the lowest property tax rate of any city in Hamilton County except Lakesite and Walden. And those municipalities do not provide city services, said Mayor Brian Williams. Because of the reassessments this year which resulted in substantial increases in the value of real estate, the tax rate was lowered so that the city will not receive more income from property taxes just because the assessments went up. City Manager Scott Miller said the certified tax rate provided by Hamilton County was calculated so that what the city will collect is revenue neutral. The rate in fiscal year 2025 was $1.25 per every $100 in assessed value. The new rate for fiscal year 2026 was lowered to $.7993, and has been approved by the city council.
The general operating budget that passed on the first reading stands at $27,827,365. The budget increased by $561,000 over this fiscal year that ends this month on June 30.
Still in question, that will be decided at the next council meeting, is what the city will provide and pay for in the way of Care-A-Van services for residents. For the last several years trips have been unlimited to those who qualify, but the cost of this amenity to citizens of East Ridge has increased. At this time the budget incudes $100,000 for this service provided by CARTA.
Mr. Miller told the council that to continue providing unlimited trips, $44,820 would need to be added to the budget. An option that the council will vote on before the second reading and final passage of the budget on June 26 is to continue the service but limit trips to medical, dental and dialysis appointments. That would reduce the cost to the city by $44,820. The previous cost for East Ridge to give the unlimited service was $20 per ride. That has now increased to $47 per trip, or $97 for a round trip. Mayor Williams said he feels that the need is there for the service, but he would like to strike providing transportation for entertainment. He said in his opinion, that is not what it is for.
The number of rides in 2025 were broken down to 22 percent for shopping, 10 percent for entertainment, 24 percent for employment, 9 percent for general, 17 percent for medical and 18 percent for dialysis appointments. It was noted that for those without transportation, drugstores have delivery service and groceries can now also be ordered and delivered.
The majority of the council favored continuing the service but limiting it to the essential health care appointments. But Councilman Jacky Cagle would like to continue with the unlimited service that includes entertainment, jobs, grocery and drug stores regardless of where somebody wants to go. “I enjoy walking around the stores,” he said.
The new budget includes an increased assessment for trash and refuse disposal. Costs to provide this service is not cheap, said the city manager. Disposing of waste has increased by $10.75 per ton, as well as the increased cost of equipment and vehicles used by the department. Mr. Miller recommended and the council approved an increased charge for residential from the current $15 to $17 per month, or from $180 to $204 per year for residents with a single can. And commercial service will increase from $20 to $22 per month, or from $240 to $264 a year if the business has one can.
At the year’s end, the city’s operating budget for 2025 was amended to account for unbudgeted items, income and grants.
A rezoning request was denied to owners of property at 3210 Ardian Tr. who were seeking to have the zoning changed from R-1 Single Family Residential to C-2 General Commercial to be able to park school buses there. C-2 allows for high intensity development that would impact a neighborhood such as traffic, noise and more that is incompatible, said Michael Howell, the city’s chief building official. It would create significant issues, spot zoning and set a bad precedent, he said. Attorney Buddy Pressley representing the owners said the buses are used only in East Ridge and they are available in case of an emergency. Questions from the council revealed that just one of the drivers lives in the house so if there was an emergency, all the others would require time to get to their buses. City Attorney Mark Litchford also told the council he had verified that there is secure space to park the seven buses at two schools within East Ridge. The buses have increased from one in 2010 to seven now, and a permit was never applied for.
“The city failed,” by allowing buses to park there as long as they have, said Councilmember Andrea Witt. Two neighbors came to the public hearing about the zoning change who had no opposition to the buses and Councilman Cagle said he did not have a problem with them, but the other council members did and voted to deny the zoning change. Vice Mayor David Tyler said that commercial zoning should stay at Ringgold Road. If this change had passed, it would open the flood gates for others to seek an exemption, he said. Mayor Brian Williams noted that the city is not trying to shut the business down, but has only denied storage of the buses.
Rezoning was given final approval for 10 acres within the Gateway development where the Red Wolves stadium is located. On the second and final reading the property was rezoned from C-4 to R-1 Single Family residential so that 68 homes can be built there. The developers had received approval to zone the property to C-4 in 2019 which was planned for retail, commercial and residential use. Even though this change will remove the property from border region use where the city would receive three percent of sales taxes generated there, the developers have determined that the best use for the property has changed since that time, with the reduced demand for office space. The council was told that the R-1 zone would create a better buffer zone for the houses around the edges of the Red Wolf stadium. Property located at 6419 was also changed from R-2 Duplex District to C-4 Planned Commerce Center that will be added to the development.
Another property in East Ridge was rezoned from C-1 Tourism Commercial to C-4 Planned Commerce Center District on the final vote. A 150-room motel at 6510 Ringgold Road had been renovated six years ago but continued to be underutilized. The owners plan to create a mixed-use development by converting the back building into small efficiency apartments that will be affordable housing renting from $950 to $1,250 per month with a six-month minimum lease. The front building will become retail space occupied by a single business.