Hendersonville adopts FY2026 budget on second reading with firefighter funding, staff pay adjustments and tree bank allocation

HENDERSONVILLE, Tenn. — On second reading July 2025 the Board of Mayor and Aldermen unanimously adopted the city’s fiscal 2026 budget and tax rate, approving several amendments made during the meeting, including funding for a potential SAFER grant, a revised employee-pay plan and a TreeBank appropriation for tree replacement.

Key decisions in the adopted budget - SAFER grant contingency: The board added $75,000 to salaries and benefits specifically to support the city’s SAFER (Staffing for Adequate Fire and Emergency Response) grant application and to cover the city share if the grant funds less than previously expected. City staff explained that new SAFER guidelines reduced federal first-year coverage from 100% to 75% and introduced cost sharing in the first three years; staff said $75,000 would cover three firefighter positions for the initial grant period. Alderman Martin moved the amendment and Alderman Collins seconded; the amendment passed unanimously.

- Employee pay adjustments (scenario 2A): The board adopted "scenario 2A," replacing the earlier "scenario 5" presented at first reading. Alderman Sasse, who presented slides during the meeting, said scenario 2A increases pay for employees in pay grades 20 and below (about 209 employees) to an annualized increase of roughly 6.7% in those grades, with smaller changes for higher grades. The finance slides showed example annual increases: a police records clerk up about $303, a parks assistant maintenance supervisor up about $473 and a fire inspector up about $576 under scenario 2A compared with scenario 5. The board also directed staff to identify any instances where a subordinate’s pay would eclipse a supervisor’s and to adjust those supervisor salaries by up to two steps within the existing pay grade so the subordinate would not be paid more; such adjustments were capped at two steps or 5%.

- Exclusion of elected officials from supplemental raises: Board members recorded a clarification that elected members of the board would not receive the supplemental pay increase; the mayor would continue to receive the standard 2% cost-of-living adjustment included in the proposed budget. The board placed the clarification on the legislative record during discussion.

- TreeBank appropriation: Alderman Skidmore proposed and the board approved using funds from the TreeBank (developer contributions designated for tree replacement) to pay for new plantings. The motion was amended to increase the requested amount from $30,000 to $60,000 and passed unanimously; staff said recent years have seen $30,000–$60,000 drawn from the TreeBank for replacement projects and that $60,000 would cover anticipated planting needs next fiscal year.

Votes and adoption After folding in the amendments the board voted to adopt the FY2026 budget on second reading. Alderman Collins moved the main motion to adopt the budget with the evening’s amendments; Alderman Evans seconded. The measure passed unanimously.

Context and next steps City staff said they will update the budget documents to reflect the Piedmont Natural Gas franchise fee decision earlier in the meeting and the other changes the board made. Staff also committed to providing a four-year trend analysis of the executive department’s budget at the board’s next meeting, at the request of an alderman who sought greater transparency on position changes and historical comparability.

Ending: The budget ordinance passed on second reading with unanimous support; staff will publish the revised budget documents and follow up on the staff-pay adjustments and TreeBank allocations at future meetings.