Soddy-Daisy commission approves first reading of 2024'25 budget and tax rate in 3'2 vote

The Soddy-Daisy Board of Commissioners approved on first reading an ordinance adopting the city's fiscal 2024'25 budget and tax rate during a special called meeting on May 22, 2024, passing the motion 3'2. Mayor Everett moved to adopt the ordinance as proposed and "look at the assessment next year," and Commissioner Keith seconded the motion.

The vote came after a public hearing and more than nine hours of budget workshops this year, city leaders said. City Manager Burt Johnson told the board the city's total assessed value is $362,000,000 and outlined capital outlays the proposed budget would fund, including two fire engines already ordered, software updates for codes and public works, a free-standing restroom at North Park, parking-lot lights at South Park, pavilion repairs, replacement police vehicles and a planned rewrite of the zoning ordinance.

The ordinance drew opposition from some commissioners and residents who urged the City to wait for the county reassessment before approving any tax increase. "I ask the Commission to wait for the reassessment before imposing a tax increase," public commenter James Berry said during the hearing. Vice-Mayor Coleman said "$25.00 is a lot to people" and joined Commissioner Shipley in urging a delay until after the reassessment and the upcoming election.

Supporters said some spending is necessary to maintain services and staff. Mayor Everett and City Manager Johnson said employee salary increases are included in the proposed budget regardless of the tax decision, and that the city maintains a $4,000,000 reserve. Commissioner Shipley questioned the scope and cost of raises and several proposed positions, saying he "has an issue with a 4% increase in salaries, but feels that 2% would be satisfactory." City Manager Johnson said some line items in the pay totals should be offset by other reductions (he noted approximately $1,600,000 in costs to be removed when explaining the overall pay figure discussed at the meeting).

Public safety staffing was a focal point. Fire Chief Morgan said hiring three full-time firefighters would allow the department to staff four people per shift (two on an engine and two on the squad) and that interior-firefighting certification typically takes about a year. City Manager Johnson said hiring three full-time firefighters would reduce part-time payroll by roughly $30,000; Fire Chief Morgan and others said nine new hires would be the long-term goal.

Commissioners also questioned large capital items: Public Works Director Grant and City Manager Johnson discussed a proposed $1.5 million project to stabilize North Chickamauga Creek (the $1.5 million amount was described as covering gabion baskets and not all permit or dredging work) and a roughly $600,000 plan to improve Holly Park'including parking, boat-ramp work and a dock. Johnson said the city hopes to obtain grant matches (examples discussed included an 80/20 or 75/25 match) but did not provide final grant awards.

Commissioner Shipley pressed the board on court fines and revenue collection, asking how much money is owed on unpaid fines; Johnson said he would be "surprised if it is less than $500,000." Police Chief Billy Petty said there were 6,000 stops last year with 51 tickets written. Johnson added that the fines currently owed are not primarily for speeding tickets.

Procedural and timing concerns were part of the debate. City leaders warned that if the board delays a vote and the State later imposes a cap on tax-rate increases the city could lose the opportunity to adopt a higher rate; Johnson said revenues tied to a new rate would not be received until September 2025. The board noted the budget must be finalized before June 30 to avoid a continuation budget.

After discussion, the motion to adopt the ordinance on first reading passed with three ayes (Commissioner Keith, Commissioner Penney and Mayor Everett) and two nays (Vice-Mayor Coleman and Commissioner Shipley). The motion directs the city to revisit the reassessment next year. Public commenter Eddy Bell asked that employee raises be prioritized before hiring a full-time HR position. The meeting closed shortly after a brief public remembrance for World War II veterans; the session adjourned at 8:49 p.m.

What happens next: The ordinance passed first reading and will return to the Commission for further consideration as required by the city's procedures; the Commission noted the reassessment and state timing as constraints on future action.