The budget for the upcoming fiscal year passed its second reading this past Monday night by the Board of Mayor and Aldermen (BoMA). Prior to the meeting, the board held a study session to discuss the budget and propose any changes.

During the study session, the board went over the topics of the Senior Citizens Center being moved to Parks and Recreation, the fee schedule for FY27, updates on fees and rates from various departments and an opportunity for the Sports Council to address the board. At the specialcalled meeting on Monday, June 1, Alderman Kurt Glick made the motion to cut the Tullahoma Area Chamber of Commerce’s portion of tourism dollars and give it to the Sports Council, since the organization was cut from receiving funds from the city last year. The motion failed 1-5, with Glick being the sole Yes vote.

Addressing the board during the study session was Sports Council Vice President Scott Shasteen. Shasteen thanked the board for giving the council a chance to speak to them and to answer any questions. Shasteen read off an email he sent to the board that covered the Sports Council’s mission, which is to “define Tullahoma and the surrounding area as a premier sports recreation destination by creating new events, capturing new sports business, and cultivating the growth of sustainable annual sporting and recreation events.”

“That’s very important,” Shasteen said, “we do all that.”

He continued and gave an overview of the council’s history, from being started by the city itself until it separated and became a 501(c)3 nonprofit organization, to starting several programs and events with its partnership with the Parks and Recreation Department. After the presentation, Alderman Busch Thoma said that while he supported the Sports Council, his issue was based on the provided financial statements. He said, from his perspective, the council was taking the money from the city only to turn around and give it back, further stating that the financial sheets, provided to the board, did not show the Sports Council raising any outside money.

“Your big money is from the city,” Thoma said. “That’s your financials. Maybe it’s changed.”

Shasteen stated the financials have changed, pointing out the Sports Council has hosted 25 tournaments in the past two years, bringing in 15,000 people. He added that Sports Council has raised $400,000 in its lifetime outside city funding, which fellow member Jim Bratcher backed up.

“It’s about a four-to-one ratio,” Bratcher said. “For every dollar you give us, we return about $4. We have no salaries. It’s all volunteered.”

For the second reading, the detailed budgets for Tullahoma Area Economic Development Corporation, Equipment and Building reserves, as well as the debt summary, were added to the budget. The third and final reading will include capital projects, revolving loans, TIDB and the Benefits Reserve Budgets.

Before approving the budget on the second reading, Alderman Jerry Mathis made the motion to give the Sports Council 15% of the hotel/motel tax “They are very instrumental in a lot of things dealing with our young kids, and they’re very instrumental in upholding what needs to be done in the city of Tullahoma,” Mathis said. “I think it would be good for us to go into a percentage of the motel/hotel tax and go that route.”

Mayor Lynn Sebourn asked Shasteen if the Sports Council had a percentage request in mind, and he said it was suggested that a starting place would be 15%, but noted that 12% would be a great place. 12% is what the chamber of commerce receives from the hotel/motel tax.

During the discussion, Glick suggested that the Sports Council receive 12%, keep the chamber at 12% and raise the South Jackson Performing Arts Center from 6% to 12%. Finance Director Sue Wilson spoke and advised the board that moving revenue from the hotel/motel tax.

“You take it away from other places where it’s already allocated, you’re going to have to use reserves or cut something,” Wilson said. “You got two pieces: you’ve got putting in the budget with an actual number, and you got redoing the ordinance that you talked about, three readings on that too.”

After further discussion, the board asked Wilson to research the impact, and Mathis withdrew his motion so the board could have time before the next reading to have a study session with staff and City Administrator Jeff Damron, who was absent from the meeting, to see what the impacts would be.

The board then passed the second reading unanimously. The next reading is scheduled for the June 22 meeting, provided that the state certified tax rate is available at that point. The budget reflects the preliminary state certified tax rate of $1.5648, a decrease from the prior rate $2.1532 due to Coffee County’s recent property valuations. Wilson stated the rate has yet to be certified by the state pending time allowed for appeals. Wilson stated during the study session that the board may need a continuation resolution if the state does not certify the tax rate in time for the final reading.