Tullahoma aldermen debate tax increase as budget rises $2.24 million; staff asked to seek cuts

TULLAHOMA, Tenn. — Members of the Board of Mayor and Aldermen spent much of the meeting debating whether to approve a proposed fiscal year 2026 general fund budget and a related property tax increase intended to fund road maintenance and a municipal building project.

The budget proposal under consideration would set general fund appropriations at about $39.6 million for the fiscal year beginning July 1, 2025. Board discussion focused on a proposed tax increase that Alderman Kurt Glick said would include 15¢ per $100 of assessed value to raise about $750,000 for roads and 5¢ to provide about $250,000 toward the municipal building, part of a larger roughly $2.24 million year-over-year increase in the general fund.

Glick urged the board to task staff to search for $750,000 of reductions so the city could fund the road work without raising property taxes this year. “I think it’s very important we do the roads, and … not have a tax increase this year,” Glick said during debate, asking staff to “investigate if we can do that without having a tax increase.” The board discussed possible places to find savings — unfilled positions, delaying new hires, and trimming nonrecurring items — but members and staff cautioned that some increases reflect fixed costs or dedicated funding sources.

The board recorded an initial vote to carry the budget as amended to the next reading in two weeks; the motion to advance the budget carried with four votes in favor and one opposed. During that session the board approved a separate, staff-proposed amendment reallocating $7,500 in hotel/motel (tourism) funds — reducing the beautification and forestry line and directing money to the Arts Council, the Historic Preservation Society and the Hands On Science Center to support tourism-related projects. That amendment passed 5–0.

Board members agreed to direct staff to develop options showing where $750,000 in cuts could be found and to present trade‑offs in the coming days. Alderman McGee and others asked staff to evaluate headcount changes versus pay increases, delayed purchases, and other program reductions. Staff noted some large increases in the proposed budget are personnel-related (COLA/steps) or legally constrained, and that some capital or equipment items are located in separate funds.

Why it matters: Board debate determines whether Tullahoma will fund extra road maintenance now via a tax increase or attempt to absorb the added cost through internal reductions. The city faces a backlog of deferred road work that aldermen said has been postponed for many years.

What’s next: The budget ordinance will return for further readings; staff will prepare a proposal showing possible cuts and the trade-offs if the board wishes to avoid the tax increase.