Loudon City Council adopts budget, sets tax rate and approves multiple ordinances, contracts and surplus declarations

The Loudon City Council on May 20 adopted an annual budget for the fiscal year beginning July 1, 2025, set the city's 2025 property tax rate as described in the meeting as "dollar 19 for $100 of assessed value" (unchanged from 2024), and approved a series of ordinances, contracts and surplus declarations.

The council approved the FY 2025'26 budget after a roll-call vote that produced four votes in favor and one opposed. During discussion the council noted the adopted budget left the city with what was described in the meeting as about an $800,000 budget shortfall; a council member urged pausing to identify funding before committing to new spending.

Council members also approved an ordinance on second reading to revise the municipal procurement policy and an ordinance on second reading amending personnel rules and regulations to reduce the minimum time in position for employees transferring to another position to six months. The council also advanced on first reading amendments to pay rules to align with 12-hour police shifts.

The council authorized two downtown-related contracts contained in the meeting packet: one contract for downtown master plan consulting services and a separate contract for downtown development coordination services. Both motions were moved, seconded and approved during the meeting.

The council declared several items surplus: a quantity of 9mm weapons and associated ammunition from the police department and 32 SCBA bottles from the fire department identified as out of service. Each surplus declaration was moved, seconded and approved as listed on the agenda.

Other formal actions included authorization to fund a study of the cost associated with the hazardous duty supplemental benefit pursuant to Tennessee Code Annotated section 8-36-212 (the meeting record lists an amount of $400 to fund the study), adoption of a drought management plan ordinance (Title 18, Chapter 3), and an amendment to the FY 2024'25 budget. The council also accepted a low fuel delivery quote from Valley Oil Company totaling $18,248.75 for the purchase of fuel, as reported by staff.

On administrative and personnel matters, the council discussed and approved a pay classification plan that authorizes the city manager to hire into specified positions (approval does not require that the manager hire). During that discussion a council member disclosed a potential personal benefit: "My wife is paid half by utilities and half by city. And she will benefit, of course. That means I will recuse this vote. In no way has that influenced my vote. No whatsoever," the council member said on the record.

Votes at a glance (items taken from the meeting packet and recorded motions): - Downtown master plan consulting services: approved (motion; voice vote) - Downtown development coordination services contract: approved (motion; voice vote) - Study of hazardous duty supplemental benefit (TCA 8-36-212): authorized funds (meeting listed $400 for the study; motion carried) - Pay classification plan / personnel hiring authorization: approved (motion; voice vote) - Surplus police 9mm weapons and ammunition: declared surplus (motion; voice vote) - Surplus fire department SCBA bottles (32 units): declared surplus (motion; voice vote) - Ordinance, municipal procurement policy (second reading, based on TCA provisions cited in packet): approved (roll call requested; motion carries) - Ordinance, personnel rules & regulations (second reading, reduce minimum time in position to six months): approved (roll call) - Ordinance, pay rules amendment (first reading, align with 12-hour police shifts): advanced on first reading (roll call) - Ordinance, drought management plan (Title 18, Chapter 3): approved (roll call) - Property tax rate for tax year 2025 (described in meeting as "dollar 19 for $100"; unchanged from 2024): adopted (roll call, unanimous by those recorded) - Annual budget FY 2025'26 adoption: approved (roll call; tally recorded during meeting: 4 yes, 1 no) - FY 2024'25 budget amendment: approved (roll call)

The meeting record shows routine departmental reports, announcements of public hearings, and a number of board/committee updates after the votes. Several items passed on voice votes or with the roll-call results recorded as "motion carries." The meeting packet contained the full contract documents and ordinance texts; the council voted to approve the items as presented on the record.

Ending: The council did not set a separate effective date in the meeting minutes for most of the approved ordinances and contracts; those details remain as provided in each contract or ordinance in the packet. No litigation or external approvals were recorded as conditions for the budget or the majority of the contracts approved at this meeting.