Soddy-Daisy postpones budget vote after notice defect; residents press concerns over taxes, staffing and services

The City of Soddy-Daisy postponed action on its proposed fiscal 2024-25 budget and accompanying tax-rate ordinance after City Attorney Elliott told the Board a technical defect in the public notice requires the matter be moved to a special called meeting on Wednesday, May 22, at 7:00 p.m.

Mayor Everett and other commissioners faced a crowded chamber Thursday as residents expressed concern about the effect of a tax increase on seniors and asked the city to consider alternatives to immediate raises. "This Commission has nothing to hide from anyone," Mayor Everett said, defending the process and adding that without federal funds the city would have operated at a $700,000 deficit last year.

The postponement came at the outset of a public hearing and first reading on "an ordinance of the City of Soddy-Daisy, Tennessee, adopting the annual budget and tax rate for the fiscal year beginning July 1, 2024 and ending June 30, 2025," which Assistant Recorder Dolberry introduced. City Attorney Elliott said the ordinance and a separate tree removal request would both be deferred "due to a technical defect in the notice," and that no action could be taken that night.

Residents urged the board to weigh the impact on people on fixed incomes. Diane Walker said she appreciated the mayor's comments about transparency but asked him "not to be so defensive when speaking," saying that behavior "intimidates some from speaking." She noted that 21% of city residents are over 65 and on fixed incomes and suggested splitting any tax increase across two years.

City Manager Burt Johnson responded with fiscal context: Soddy-Daisy receives about $700,000 per year in sales tax revenue from the local Walmart, has roughly 71 full-time employees, and maintains a roughly three-month reserve that would leave the city vulnerable if it lost a major taxpayer. He confirmed the police department has 28 officers and said staff are seeking alternatives, including recruiting a hotel and restaurant to boost revenue.

Public safety staffing and equipment costs emerged as recurring themes. Commissioner Keith emphasized that firefighter staffing levels affect the city's ISO rating and homeowners' insurance and argued additional firefighters are needed; he also noted that lift-assist calls for an older population tie up crews. Mayor Everett said the city has one bridge that could be closed by TDOT if an inspection fails and described recent capital costs: the city spent part of a $4 million Dayton Pike paving project this year and the fire department has aging apparatus, with two new trucks costing about $700,000 each.

Several citizens offered alternatives and requests: James Berry asked the board to delay any increase until after reassessment data are published; Derek Kukura proposed a property-tax freeze for seniors and a task force to recruit tourism and alumni investment; Tony Morales asked whether the city could cap taxes and was told by City Attorney Elliott that state law does not permit municipalities to unilaterally cap taxes or hold local referendums on general tax rates. Christopher Murray was advised that the roadway he raised is a state right-of-way (State Route 319) and given a contact for the State.

No votes were taken on the budget or the tree-removal request; both items were postponed to the special called meeting on May 22 for corrective notice and further consideration. The board adjourned at 8:27 p.m.

What's next: The Board will reconvene in a special called meeting on Wednesday, May 22, 2024 at 7:00 p.m. to address the deferred budget ordinance and the tree removal request.