Spring Hill advances FY27 budget and tax-rate steps; questions raised on pay step plan

The Board of Mayor and Aldermen on June 1 acknowledged the certified tax rate and approved first-reading measures advancing the city's FY2026-27 budget and tax-rate ordinance.

Finance Director Rebecca Holden presented BA#4 (Ordinance 26-08) and provided the board an overview of adjustments. The board adopted Resolution 26-173 to acknowledge the certified tax rate by a unanimous vote, 9-0. The board then approved Ordinance 26-09 (to adopt the tax rate for FY27) on first reading, 8-1 (Nay: Alderman Alex Jimenez).

City Administrator Carter Napier presented updates and adjustments to the proposed FY27 budget; the board approved Ordinance 26-10 on first reading, 9-0. Mr. Napier said updates reflect feedback from BOMA and noted staff would provide a list identifying which incentives would remain and which would be discontinued within the Police Department. Finance Director Rebecca Holden explained a negative net position in the Water and Sewer funds and said the city is discussing the matter with the Tennessee Board of Utility Regulation (TBOUR).

During discussion Alderman Alex Jimenez asked several questions about the proposed compensation step plan. Alderman Vincent Fuqua raised a point of order and requested that detailed discussion about the step plan occur during the work session. Mr. Napier said department meetings are underway and that employees would receive individual letters explaining their placement in the new plan; he also referenced a proposed one-time payment connected to the compensation changes.

The board's votes at the meeting advanced the tax-rate and budget items to the next procedural steps recorded in the minutes.