East Ridge council approves grants and contracts, hears FY2025-26 budget; city manager proposes modest sanitation fee increase

The East Ridge City Council on May 8 approved several funding actions and heard a full presentation of the proposed fiscal 2025–26 budget from City Manager Miller.

Resolutions approved included accepting a Hamilton County Homeland Security grant to equip East Ridge Fire Department apparatus with ballistic vests for active‑shooter response, approving a state grant amendment that adds $60,000 to the community center renovation matching grant, a two‑year contract with the Tennessee Department of Transportation to mow the I‑75 Exit 1 interchange on a reimbursement basis, and a waiver of facility fees for a nonprofit car and toy show at Camp Jordan Arena.

Fire Chief Williams described the Homeland Security grant as county‑coordinated equipment for active‑shooter scenarios: the award will provide ballistic vests to be kept on first‑due apparatus at no cost to the city. The council approved the resolution for that grant (Resolution 36‑81) on a roll call vote.

City Manager Miller presented the proposed FY2025‑26 budget and highlighted several points: the city’s total proposed all‑funds budget is $45,180,801 with a general operating fund of roughly $27 million; the budget is structured to be revenue neutral on property‑tax receipts following the county reassessment (the city will lower its tax rate to generate approximately the same property‑tax revenue as the prior year, while capturing taxes from new construction); and the city plans capital projects and staffing changes tied to new facilities, including Venue 1921.

“This budget is based on a revenue neutral position with taxes,” Miller said, noting the city is awaiting certified reassessment figures from the county and will roll back the 1.25 tax rate to an amount that produces the same total property tax revenue as the current year. Miller said staff expects to receive reassessment figures in mid‑May and will update council before first reading of the budget. He also listed recent and near‑term commercial and residential projects coming onto the tax rolls, from restaurant and retail openings to multiple residential subdivisions and apartment projects.

Miller described planned personnel additions tied to the new multipurpose facility (Venue 1921): two full‑time positions (one marketing/booking hire in August and a custodial/maintenance hire when Venue 1921 opens in early 2026). He also proposed a 3% across‑the‑board salary increase and continued performance evaluation raises.

During the budget discussion Miller raised the sanitation/solid‑waste fund’s structural shortfall: disposal fees have risen (transfer station disposal rose from $33/ton to $43.75/ton), and existing sanitation assessment fees — unchanged for roughly 20 years — currently do not cover operating and capital needs. “So what I am proposing, that we increase the fees from $15 per month to $17 per month for residential,” Miller said; on the commercial side he proposed raising the annual fee from $240 to $264. Miller said the increase would not eliminate the shortfall but would make a “major dent” in the fund’s deficit. Council did not take a final vote on fees at the meeting; Miller said staff will return with detailed options.

Other budget highlights Miller presented: capital outlays for police vehicle replacements, shop and street equipment, fire rescue tools to outfit a new apparatus, $700,000 for street resurfacing and a multi‑million dollar allocation tied to the North Mac Smith Road widening project, and $2,118,000 appropriated for the community center expansion (with the state’s extra $60,000 reducing the city contribution proportionately). Miller recommended preserving an unassigned general‑fund balance (he cited a current unassigned balance near $10 million after committed obligations) and cautioned against further use of fund balance except for emergencies.

Council approved the TDOT mowing contract (Resolution 36‑83), which will reimburse the city $9,800 for mowing roughly 55 acres at the I‑75 Exit 1 interchange over 24 months; council members questioned whether the reimbursement covers the city’s actual costs but approved the arrangement. Council also approved the state grant amendment for the community center (Resolution 36‑82) — the state added $60,000 in matching funds and the city committed to match — and unanimously approved the Camp Jordan fee waiver for the East Ridge Needy Child Fund (Resolution 36‑84), a local 501(c)(3) that staff said typically raises about $5,000 at the event.

Votes at the meeting were recorded by roll call for each resolution. Council also approved the consent agenda and other routine items.

The city manager said staff will provide reassessment figures and an updated budget report at the May 22 meeting and the budget will be presented for first reading on June 12 and second reading on June 26 if on schedule.