Town of Signal Mountain unveils 2025-2026 budget with $139K shortfall

The Town Council of Signal Mountain held a special meeting on June 11, 2025, to discuss the proposed budget for the 2025-2026 fiscal year. The meeting highlighted key financial projections and budgetary challenges facing the town.

The general fund revenues for the upcoming budget year are projected at $9,873,266, while total budget appropriations are set at $10,012,620, resulting in a shortfall of $139,154. A significant expense included in this budget is the estimated $287,015 for the transfer of the Mountain Arts Community Center's operations to the town.

Other funds were also reviewed during the meeting. The drug fund is not expected to see new activity, as the town has ceased drug seizures. The State Street aid revenues are budgeted at $384,500, with appropriations leading to a projected deficit of $465,749, which is expected to be resolved by the end of the second quarter of the fiscal year.

The vehicle replacement fund is projected to increase its ending balance from $2,362,806 to $2,705,802, with cash receipts of $677,720 and appropriations of $334,724. The library fund will maintain its income from the general fund at $220,000, but total appropriations will exceed income, resulting in a decrease in the fund balance to $10,114.

In the stormwater fund, user fees are estimated at $536,216, with appropriations set at $273,443, leading to a growth in the fund balance to $1,628,088. The second service fund is projected to grow its balance to $8,294,702, with appropriations of $1,937,613.

The council emphasized that while there is a slight deficit in the budget, enterprise funds remain strong with good cash on hand. The adopted tax rate for the year is $6,051,583, with an estimated collection rate of 98%.

The meeting concluded with a call for council members to review the abbreviated budget document provided, which offers an overview of fund balances and financial health for the upcoming fiscal year. The council will continue to monitor the budget closely as they move forward.