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City manager outlines FY26 budget schedule as reappraisal process could lower tax rate
Summary
City staff reviewed the FY26 budget timeline, fund structure and staffing levels and told commissioners the Hamilton County reappraisal is pending; the city will use the current $1.67 rate in budget documents until the county-certified revenue‑neutral rate is issued.
City staff gave commissioners an overview of the FY26 budget timeline, key funds and staffing supported by each fund and cautioned that Hamilton County’s ongoing property reappraisal will change the certified tax rate that the commission must adopt.
The city manager (name not specified in the transcript) opened the budget workshop by reviewing meeting dates, packet locations and the structure of the FY25 budget packet used as the base document. He said department director messages and parts of the draft FY26 materials are already posted on the city website.
Why it matters: Hamilton County is conducting a reappraisal and the assessor will issue a revenue‑neutral tax rate tied to the new assessed values. City staff said the budget will use the current $1.67 rate for planning, but the commission may adopt a different rate once the assessor’s certified figures are released.
Key points from the overview - Budget timeline: two public budget workshops were scheduled the next two Tuesdays, first-read ordinance planned for May 20 and second reading in early June for adoption effective July 1. - Fund structure: the FY25 documents include seven funds — the General Fund, ARPA, State Street Aid, Solid Waste, Stormwater, Drug Fund and Impound Fund — each described with revenue sources and staffing. The city manager said the General Fund pays for core services and listed departments supported by it. - Staffing: the FY25 budget shows 82 full‑time benefited employees across funds; some positions are partially funded across funds (for example, 50% of the community development director is charged to stormwater). - Revenue drivers: the largest General Fund revenue sources cited were property tax ($5,132,682), local sales tax ($1,780,000) and state-shared sales tax ($1,475,476). CFO Chris Pickle said general fund revenues were at about 85% of expected through the reporting period and expenditures were at roughly 73% of budget.
Reappraisal and tax-rate timing Staff emphasized the city is in a reappraisal year; the assessor’s process includes an appeal period and the assessor must calculate a revenue‑neutral rate so that prior dollars (approximately $5.1 million in property tax receipts) are maintained. The city manager and CFO said the assessor’s certified rate will likely be significantly lower than the current $1.67 levy, but the commission must adopt a rate formally after receiving the assessor’s notice. Staff did not give a precise certified rate or a countywide percentage change, noting only that county‑level reports have discussed large increases and that the city’s adjustments may be larger than county averages.
Next steps Staff will present the city manager’s budget estimate at an upcoming workshop, department directors will present departmental proposals at two follow-up workshops, and the commission will receive the formal ordinance for first and second readings as required by the city charter. The CFO must file the adopted budget with the Tennessee Comptroller within 15 days of adoption.
Quotes CFO Chris Pickle summarized fiscal position: “the general fund is up about 10% of what we expected to be at at this time of year,” and “the expenditures are at 73%, so they're just a tick below where we expected them to be.”
Ending Staff asked commissioners to use posted materials and attend the scheduled budget workshops; once the assessor issues the new certified rate staff will bring any necessary tax-rate ordinance back to the commission for action.
