Signal Mountain council approves water payment, approves Abbott contract amendment and advances budget amendments to public hearing

The Signal Mountain Town Council on Monday unanimously approved a $32,000 distribution from the town's water fund in lieu of ad valorem taxes, voted to increase a previously authorized payment to Abbott Enterprises to a final cost of $37,777.26, and took the first reading of an ordinance to adjust appropriations in the 2024'25 budget.

The water-fund distribution resolution, described at the meeting as the town's payment in lieu of property taxes on the water system for fiscal year 2024'25, was moved, seconded and approved without recorded opposition. Council members said they would follow up after staff noted that the amount had been budgeted in the prior audit but apparently not received in the town's records for the prior year.

The council also approved an amendment to Resolution 2025-17 to increase the payment to Abbott Enterprises from the originally authorized amount to $37,777.26, a $2,777.26 increase covering additional repairs discovered after the initial bid. Town staff said the extra work covered wood rot found under old siding and that the payment will be made from the town's American Rescue Plan (ARP) allocation tied to that project.

Council then held the first reading of an ordinance to amend Ordinance No. 2024-09 (the 2024'25 budget) to make adjustments to appropriations across departments. Staff and council members discussed line-item allocations during the hearing, noting that some insurance costs (property, liability and general liability) had been misallocated by the town's bookkeeping process and posted to the workers' compensation line. Town staff said the total insurance expense had been accounted for, but that entries would be corrected to reflect the proper departmental lines.

Council members also flagged apparent budget discrepancies for fuel and personnel categories: part-time salaries in the fire department were under budget by about $29,000 while overtime was over budget by roughly $24,000, a difference staff said resulted from turnover, availability of part-time hires and allocation placement rather than an absence of funds.

The ordinance received a favorable vote at first reading and will be read again, with a public hearing, at the council's next regular meeting in two weeks.

Manager John Provost told council the town had received its certified tax rate from Hamilton County and outlined the schedule for the 2026 budget process: he will present the 2026 budget on Wednesday, June 11; the council will hold ordinance readings and a public hearing on June 23; and a special called meeting is planned for Monday, June 30 for the second reading and final action. Council members agreed to a 4:00 p.m. start time for the June 30 meeting to ensure a quorum.

Votes at a glance

- Resolution: Distribution from town water fund in lieu of ad valorem tax payments for fiscal year 2024'25 — amount: $32,000 — outcome: approved (unanimous)

- Resolution: Amend Resolution 2025-17 to increase payment to Abbott Enterprises — final cost: $37,777.26 — outcome: approved (unanimous)

- Ordinance: Amend Ordinance No. 2024-09 (Budget 2024'25) to adjust appropriations — action: first reading approved; second reading and public hearing scheduled

Council members asked staff to track the prior-year audit entry noted during the water-payment discussion to confirm whether the $32,000 had been received in the town's prior audit records. Staff said they would investigate and report back.

Chief Larry Sloan was recognized during the meeting after council congratulated him on receiving the Chief Fire Officer professional designation from the Commission on Professional Credentialing.

The council adjourned after receiving reports from town committees and setting the dates for upcoming budget hearings.