Tullahoma aldermen approve first reading of fiscal 2025–26 budget, set study session for details

TULLAHOMA, Tenn. — The Board of Mayor and Aldermen on Monday approved on first reading Ordinance No. 16 51, the city’s proposed budget and tax rate for the fiscal year beginning July 1, 2025.

The measure passed the first of three required readings after a roll-call vote counted “4 yes and 2 no.” The board planned a study session immediately after the meeting for further review and to collect follow-up information ahead of a second reading next week and final adoption by June 30.

City staff and aldermen framed the ordinance as a starting point for further adjustments. “I think the operation of our city is very efficient right now,” Mister Quirk said, praising department heads and staff who compiled the document. Board members said they expect to refine the proposal in the two remaining readings.

Why it matters: The ordinance sets the city’s spending plan and tax rate for July 1, 2025–June 30, 2026. Passing the first reading allows staff to provide the formal public notice required before the next hearings and gives the board a working document to amend ahead of the legally mandated third reading.

Discussion and staff follow-ups

Aldermen and staff focused discussion on large-line items, personnel costs and use of reserves. Board members asked for an organizational chart and a position-by-position salary breakdown to understand recent changes that produce large percentage increases in some departments. Staff said they would email the organizational report and other supporting materials before the next meeting.

The budget includes a 2.4% cost-of-living adjustment (COLA) and a step plan line; staff provided consolidated dollar amounts to the board during the meeting for planning (staff figures provided to the board). Members asked how much of the budget relies on reserves and whether one-time expenditures are being used to balance recurring costs.

Public comment

A single public commenter identified herself as Vicky representing the Cobb County Senior Citizens and urged continued support for the senior center after the organization lost two funding sources last year. She said, “the board has decided that we will close on Fridays, just to try to cut back on some of our expenses.” Board members noted the comment and indicated staff would continue outreach to explore grants and funding options.

Votes and next steps

The motion to consider the budget for discussion was made by Alderman Bird and seconded by Alderman Toma. The ordinance passed on first reading; it will return for a second reading at the board’s next meeting and a third, final reading by June 30. Staff signaled readiness to supply requested follow-up items, including the organizational chart, detailed salary/step information, and the underpinning for revenue estimates.

Budget context and clarifications

During the meeting staff and aldermen discussed the city’s reserve position and how conservative revenue assumptions affect the plan. Staff said the city uses a multi-part reserve approach that includes a stabilization amount and a separate cash-flow component; the board was told the city’s reserves were substantially above the minimum targets. Aldermen also discussed past outside compensation studies and whether a new organizational study should be budgeted for future years.

The board moved into a study session after the vote to work through the questions raised and prepare any changes for the next readings.