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Signal Mountain adopts FY2025–26 budget; approves year‑end amendments and tax‑rate approach
Summary
The council approved an amendment to the 2024–25 budget and adopted the fiscal year 2025–26 budget and tax rate. Council described the budget as revenue‑neutral with staffwork to improve transparency and budgeting software planned for the coming year.
The Signal Mountain Town Council on June 23 approved a second‑reading amendment to the fiscal year 2024–25 budget ordinance and adopted the FY2025–26 annual budget and tax rate.
Council members described the action as maintenance of a revenue‑neutral approach: the town is accepting the neutral tax rate following reassessment rather than pursuing a change that would increase or decrease overall revenue. Council members emphasized that taxpayers will not see a council‑driven increase in the town portion of the property tax this year.
Council and staff discussed pay and benefits: the town budget reflects a cost‑of‑living adjustment (COLA) whose overall fiscal impact is approximately $140,000. Officials explained that different salary components are affected differently by a COLA and that the town’s accounting software calculates the percentage impact when the authorized COLA amount is entered.
A member of the public asked about a $2,726,000 cash‑receipts line in the packet. Staff explained this reflects a bond refinance recorded as both a cash in (the refinance proceeds) and a corresponding expense (payoff of the prior loan); staff characterized the refinance as preferable to allowing the prior loan to balloon under its option provision. Council discussed a current interest level for the new financing of about 4.74 percent compared with the prior rate and described the refinance as reducing the larger near‑term increase that would otherwise have occurred.
Council members highlighted that the town has held taxes steady for four consecutive years while also appropriating funds for items they described as investments in staff and town assets; they noted recent surpluses and the planned purchase of a budgeting software platform to improve transparency. Staff confirmed the budget packet was included in the agenda packet and available to the public; council scheduled a special called meeting at 4 p.m. on June 30 for additional budget action as needed.
Votes: Council members present voted in favor of both the budget amendment and the FY2025–26 budget ordinance; no votes in opposition were recorded.
