Soddy-Daisy commissioners agree to advance employee pay plan, weigh property tax increase

The Board of Commissioners of the City of Soddy-Daisy agreed by consensus Feb. 24 to advance a proposed adjustment to the city’s employee pay plan and will consider funding options, including possible property tax increases, at its next commission meeting.

City Manager/Recorder Johnson told the board his role is to advise whether the city can fund pay increases and presented revenue projections and tax-rate scenarios to inform that decision. He said a list of upcoming developments should generate about $450,000 in property tax revenue once completed and that sales tax revenue grew about 7% last fiscal year and is currently trending up another 7%.

Johnson laid out estimated revenue from proposed property tax increases: a 10-cent increase would generate roughly $370,000, a 15-cent increase about $550,000 and a 20-cent increase about $730,000. He also presented a comparison of property tax rates among full-service cities in Hamilton County and said Soddy-Daisy’s effective rate is at least 30 cents lower than those peers. Johnson recommended that new personnel be funded with a property tax increase.

Mayor Everett said the city needs to make a significant pay-plan adjustment to keep pace with other cities and private employers. Board members and department heads discussed pay-plan proposals submitted by departments and the recurring costs trimmed from the budget to help fund an increase.

It was the consensus of the board to move forward with the pay-plan adjustment and bring the proposal to a vote at the next commission meeting. The work session adjourned at 10:45 a.m.