The East Ridge City Council on Dec. 12 received a presentation from auditors showing a clean opinion on the city’s 2023–24 financial statements and approved a package of actions including a rezoning ordinance, a development agreement for a retail redevelopment project and a new solid-waste disposal contract.

Garrett Williams, with HHM CPAs, told the council the firm’s audit resulted in an unmodified (clean) opinion. “We had an unmodified report, which is a clean opinion. It's what you want to have,” Williams said, summarizing the audit’s overall judgment and noting no findings in the single-audit work on federal programs tested, including ARPA funds.

The audit presentation detailed the city’s major funds and fiscal-year highlights: general fund assets of about $22,000,000 (roughly $13,000,000 in cash and $7,000,000 in property taxes receivable), a reported $14,500,000 year-end general fund balance (about seven-and-a-half months of expenditures), and a net positive change across funds of roughly $8,700,000 for the fiscal year. Williams also told the council the city had no single-audit findings for major federal programs tested and that the ARPA program compliance work produced a clean opinion.

Votes at a glance
- Ordinance 1212 (rezoning): Approved on second and final reading. The ordinance rezones two parcels at 6728 Ringgold Road to C2 General Commercial to align existing uses with zoning; vote: 5–0.
- Ordinance 1213 (FY2025 budget amendment): Approved on second and final reading. Amendments include transfers for debt service, grant revenue and the 2024 bond debt payment of $604,324 tied to Camp Jordan Park and the multipurpose center; vote: 5–0.
- Resolution 3611 (solid-waste contract): Approved. The council authorized an agreement with Waste Connections of Tennessee (doing business as City Waste LLC) after the city received three proposals; the low bid was $43.75 per ton and staff estimated roughly 800 tons per month; vote: 5–0.
- Resolution 3629 (development agreement): Approved. The council authorized a development agreement with East Ridge Shopping Center GP / Urban Story Ventures for redevelopment of roughly 13 acres in the border-region retail development district; the project includes an estimated $39,000,000 investment and an 80/20 revenue split under the border-region program; vote: 5–0.
- Resolution 3630 (traffic signal cabinet): Approved as a sole-source purchase of one traffic signal cabinet; vote: 5–0.
- Resolution 3631 and 3632 (library board appointments): Kimberly Myers and Rachel McQuarrie were approved to continue on the East Ridge Library Board; votes: 5–0.
- Resolution 3633 (fee waiver): Approved waiver of the Camp Jordan Arena fee for East Ridge Elementary School’s May 21, 2025, fifth-grade graduation; vote: 5–0.
- Resolution 3634 (Riverside interlocal addenda): Approved addenda to existing interlocal agreements to continue providing police and fire services to the City of Riverside, including a 4% increase for July 1, 2025–June 30, 2026; vote: 5–0.
- Resolution 3635 (waterline extension): Approved an agreement with Tennessee American Water for construction of a ~160-foot 6-inch fire main to the Town Center; estimated city share: $47,327 (subject to true-up if actual costs differ); vote: 5–0.

Why it matters
The audit and budget actions provide the council with an updated fiscal picture as the city moves forward with capital projects (Camp Jordan Park work and a new 12,000-square-foot multipurpose center), grant expenditures and debt payments. The development agreement and rezoning set the regulatory and tax-incentive framework for redevelopment of the former Food City site and adjacent parcels on Ringgold Road, which city staff and the developer say could drive material retail and sales-tax growth over the next two decades. The new solid-waste agreement resets the city’s disposal rate after the prior contract and will increase annual disposal costs, based on staff estimates.

Details and context
Audit and finances: Garrett Williams reviewed accounting policies, internal-control findings limited to interfund balance reconciliations, and budgetary highlights. He reported the general fund held about $14.5 million at year’s end against about $23 million in expenditures, equating to roughly 7½ months of coverage. Williams said the capital projects fund and ARPA activity reflected recent debt issuance and grant spending; the single-audit work on federal programs (ARPA) showed no findings.

Waste contract: City Manager Miller summarized the procurement for disposal/transfer services. “The lowest bid was from City Waste at $43.75 a ton. The other two came in at $53.55 a ton,” Miller said. Staff estimated disposal at about 800 tons per month. Miller compared that to the city’s expired agreement (about $33.91 per ton under the prior contract) and said the change would increase annual disposal costs materially, reflecting broader industry cost inflation.

Rezoning (Ordinance 1212): The council approved a second and final reading to rezone two parcels at 6728 Ringgold Road from R3 Apartment and C1 Tourism Commercial to C2 General Commercial to bring current uses into conformance and allow intended commercial uses (including Camping World) to operate in line with the zoning map.

Border-region development agreement (Resolution 3629): Staff described a multi-parcel redevelopment of roughly 13 acres where the former Food City is located; Urban Story Ventures expects about $1.4 million in sales in year one and projected increases over time (city staff noted a $323,505 baseline that is excluded from the border-region increment). The agreement, recommended unanimously by the Industrial Development Board, uses state border-region incentive mechanics and does not rely on local option property-tax rebates; staff presented an 80/20 split as the proposed allocation, with the developer’s projected return on investment around 25% on the pro forma presented to the city.

Other approvals and items: The council approved a sole-source purchase for a spare traffic-signal cabinet to keep a unit in inventory (staff cited 22 cabinets in service and lead time of 30–40 weeks for replacement), two library-board reappointments, a fee waiver for an elementary-school graduation, addenda to interlocal agreements with Riverside for police and fire services (adding a 4% increase for the next contract year), and the waterline extension funding agreement with Tennessee American Water for a fire line to the Town Center (city estimated cost: $47,327 with potential true-up if final costs vary).

Tentative items and staff directions
Council discussed a future request for a 40-foot easement across city-owned Springville Park property to provide sewer access for a privately owned parcel; council members asked staff to confirm federal grant (FEMA/block grant) restrictions on disposition or use of the park property and to limit any grant to utility access (not a public roadway) pending the state’s guidance. Staff also noted upcoming agenda items for Jan. 9, including bid awards for Parks & Rec athletic uniforms and council planning-commission appointment decisions.

What’s next
Staff said the finalized audited financial statements would be distributed to council members. Projects authorized at the meeting (waste contract, Town Center waterline, and the development agreement) will move to implementation steps handled by staff and the developer under the terms approved by the council.

Ending
The meeting concluded after routine communications and community notices, with the council adjourning for the holiday period; council members offered seasonal remarks and thanked staff for parade and event work leading into the new year.