Soddy-Daisy adopts FY2024–25 budget, sets property tax rate at $1.32 after public comments

The Soddy-Daisy Board of Commissioners unanimously adopted the city’s FY2024–25 annual budget and set the property tax rate at $1.32 during a special called meeting on May 30, Mayor Everett said.

The action, taken on second and final reading of Ordinance No. 18, followed public comment and a presentation from City Manager Burt Johnson on the city’s finances and staffing. Mayor Everett moved to approve the budget at a $1.32 tax rate; Commissioner Shipley seconded the motion and the commissioners voted aye unanimously.

The vote came after residents raised concerns about several proposed projects and service shortfalls. James Berry questioned whether a roughly $1.5 million creek-stabilization item should use city funds when, he said, the State of Tennessee owns the property. City Manager Johnson responded that creek repair had been removed from the capital improvements list and replaced with a new fire engine and that none of the listed projects are in the coming year’s budget, calling the capital list “a plan for the future.”

Residents also pressed the commission on public-safety staffing. Hardie Stulce, recounting the history of the city fire department, urged commissioners to support a tax increase and to attend budget workshops, saying recruiting volunteers has become difficult. Shane Harmon argued that bank stabilization and similar projects are about safety: “money that would be used to stabilize the bank would be to save lives not just to spend money,” he said.

Mayor Everett and City Manager Johnson laid out staffing and budget figures during the discussion. Everett said the city currently has about 30 sworn police officers (including two state-funded school resource officers) and 28 firefighters, 17 of whom are volunteers and 11 paid staff. Johnson said the coming fiscal year’s budgeted expenses total $16 million and that annual property-tax receipts run about $3.8–$3.9 million. He told the commission the city’s recurring monthly expenses are about $800,000.

Johnson presented two rate scenarios: he said a $1.32 tax rate would allow the city to hire the personnel it needs and still carry forward about $375,000, while declining the previously proposed $1.45 rate would forgo roughly $450,000 in potential revenue. Commissioners discussed reassessment timing and new growth as partial offsets to future revenue needs; Commissioner Shipley said he would support an increase smaller than the original $1.45 proposal.

The mayor also noted state legislative activity that could affect future local taxation. He said House Bill 0565 (State of Tennessee) passed and was assigned to the Property and Claims Subcommittee on Feb. 1, 2024, and that a related bill under consideration could, if signed, limit future property tax increases to inflation plus 2 percent, restricting the city’s ability to raise taxes in consecutive years to fund added personnel.

Ordinance No. 18 was approved on second and final reading with a motion from Mayor Everett and a second from Commissioner Shipley; City Manager Johnson clarified that taxes are reviewed annually. The vote was unanimous.

The commission’s next stated action on personnel policy was the approval of a classification and pay plan for FY2024–25, which passed unanimously as Resolution No. 6 before the meeting adjourned at 7:52 p.m.