The new budget for fiscal year 2026 was presented to the Signal Mountain Town Council by Town Manager Matt Justice after two public hearings. It was adopted unanimously. It has been based on the property tax rate of $1.1002 for every $100 in assessed value of the property. That is the rate that Hamilton County set for the town which keeps property tax that is received the same as the year before despite the increase in assessments this year. The rate last year was $1.70.
Councilman Charles Poss commented that costs have increased, but for the fourth year in a row, the town has not increased taxes, which is a credit to the staff for asking for what is really needed not what they want.
The general fund this year is planned to be $8,873,640 with $7,625,055 coming from local property tax. It will be $9,873,266 with other financing sources There are total appropriations of $10,018,713, which leaves the town with a $139,154 shortfall, said Mr. Justice.
Included this year are merit raises for employees plus a cost-of-living adjustment increase that will have a $140,000 impact on the budget. There is revenue budgeted of $240,400 for the library fund, $384,500 in State Street Aid, $677,720 in the vehicle replacement fund, $540,879 in the stormwater fund and $2,343,200 in the water fund.
There are also required payments for two notes. The principal payment from the loan in 2015 with an outstanding principal of $1,435,900 is $151,100 and the interest payment of $64,272. And the outstanding principal on the 2017 loan is $1,945,987. It has a principal payment of $185,013 and an estimated interest payment requirement of $43,817. Residents will have the opportunity to make comments and ask questions at a special called meeting for a second and final approval set for June 30 at 4 p.m. The new budget will go into effect on July 1.
The budget is available to see on the town’s website under “agenda packet.”
Discussion took place at the council meeting about the town’s boards and commissions. Currently there are 16 and it has become difficult to find people to fill the boards and who actively participate on them. The council discussed eliminating those boards that may no longer be relevant such as the personnel board and combining others. The town now has a human resource person who handles issues with employees. And the planning commission did not meet between November and April. And since then it has has been unable to get a quorum. Without a quorum, no vote can be taken. That means that the officers of the board cannot be elected. Town Attorney Harry Cash said in that case, the last elected officer will serve until they are replaced. Some boards, however, do not need to vote and can make recommendations, such as planning a movie night by the parks and recreation board.
And instead of having stand-alone boards such as the tree board and the recycling board, there will be consideration of creating a “sustainability/environmental education board,” with the tree and recycling board under the umbrella.
The council decided that the best way forward at this time will be to write a letter to all board members about the expectations of being on a board and asking the individuals to resign if they are unable to participate.
In other business, the council authorized Town Manager Justice to award the contract to and enter into negotiations with Waste Connections for their bid amount of $363,380 for residential municipal solid waste hauling disposal services.
And approval was given to add $1 to the state fee that will be added to traffic tickets, increasing that fee to $2, which is a requirement of the state of Tennessee. The money collected will be used for driver safety education.
Vice Mayor Clay Crumbliss is the council’s representative for the transition of the MACC to city ownership. He met with current board members Dick and Cheryl Graham about the process of making separation plans. The council decided to assign the job of replacing the MACC Director to City Manager Justice who will also work on the transition plan including how the instructors will be handled as contractors.
The annual Fourth of July parade is coming up. Mr. Justice asks those who are interested in participating to notify town hall.