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Just before the third and final reading of the FY24 budget and tax rate at the June 26 meeting of the Tullahoma Board Mayor and Aldermen, Mayor Ray Knowis made his State of the City address, directed to the citizens of Tullahoma.

The following is Mayor Knowis’ address in full:

Proud of Our Past, Planning for Our Future 

“Tullahoma is a vibrant economic hub and a city on the move; a tourism destination with natural assets and a culture of innovation in aviation testing technologies and medical services; a proud, attractive, and walkable community with great schools, diverse housing, and a small-town lifestyle.

“In Tullahoma, you’ll find a strong sense of community, a thriving business climate and a high-quality workforce; all in an ideal location with easy access to major metros, recreational lakes, distilleries, and aviation assets.

“The US Air Force’s Arnold Engineering Development Complex (AEDC) continues to be the economic engine of our region, and Tullahoma is positioned as the business hub for the region serving AEDC. Last year, based upon Tullahoma’s support of AEDC and all military personnel, the Association of Defense Communities recognized Tullahoma as a Great American Defense Community.  The city was one of only five nationally to receive that recognition and was the smallest region to receive the honor.

“The Tullahoma Area Chamber of Commerce commemorated the city’s promising future by recognizing forty (40) young professionals under 40 years of age.  These young people exemplify the talent and leadership of today as well as a reason to expect the continued economic growth and robust business climate that Tullahoma experiences.  Kudos to the Chamber also as they celebrated their 100th year of supporting local businesses and entrepreneurs! 

“Each of these anniversaries is a testament to the character of our City. We are a great location for businesses; our school system and the many extra-curricular activities and sports programs are excellent; and we know how to innovate to take advantage of the many opportunities available in our area.

Economic Strength and Resilience 

“Moody’s Investment Services has continued to assign the City an Aa2 bond rating, the third highest rating out of twenty one, and one of the highest in the state. The Aa2 rating reflects the city’s moderately-sized and growing tax base, healthy financial position with stable reserve levels, and manageable long-term liabilities. Additionally, the current edition of Site Selection Magazine named Tullahoma the #1 Micropolitan in Tennessee.  These two independent measures reflect our financial strength and show that we are well positioned for growth. 

“Another measure of Tullahoma’s economy, and one that we are particularly interested in at budget time, is sales tax growth. Although our property tax base has remained relatively flat, retail expansion continues to generate sales tax to support the City’s services and infrastructure.  Sales tax essentially funds 1/3 of the City’s budget.  Our sales tax growth is up 8.7% year to date for FY2023 and our FY2024 budget anticipates that we will generate another 8% increase in the upcoming year.

“The Tullahoma airport continues to be recognized for its strong economic impact and is one of the top-rated general aviation airports in the state. It is supported by fuel sales and hangar leases.  In addition to the many business and personal aircraft based there, the airport is also used for military exercises.  Tennessee Skydivers are also based here.  The Tennessee Department of Transportation has determined through a year-long Statewide Aviation Economic Impact Study that the Tullahoma Airport had a $21 million economic impact on our area and ranks William Northern Field as the second most impactful airport in its region.  I am very proud of our airport’s contributions to Tullahoma, and I look forward to more aviation related businesses selecting our 100-acre Airport Business Park as their new home base.

“Tullahoma also excels as a medical and technical hub. We are fortunate to have Vanderbilt Hospital in our community with their 135-bed facility. The doctors and staff strive to provide the highest quality service to our patients in a safe, compassionate, and efficient manner.  The hospital attracts many doctors, specialists, and other healthcare professionals to our area. Their helicopter Life-Flight service is a welcomed addition to our city.

“Lastly, when discussing Tullahoma’s future, the most important factor to consider is the quality of education in Tullahoma.  Tullahoma City Schools are known state-wide for many programs.  Our academic test scores are some of the strongest in the state and our teams such as Future Business Leaders of America (FBLA) win state accolades annually.  THS also partners with Motlow and other colleges for dual enrollment opportunities.  We are known for our award-winning music program, STEM classes, a new aviation technology program and strong career technical education options.  TCS recently completed their five-year strategic plan which identified the key focus areas as:

1.      Facilities

2.     Tullahoma Virtual Academy

3.      School to Work Pathways

“Under facilities, the largest project currently is the re-building of Jack T. Farrar Elementary School, which is being financed through a low interest general obligation bond issue.  This is one of the benefits of enjoying a high Moody’s bond rating.

“Tullahoma is understandably proud of our school system and the foundation that it gives our young people to succeed in whatever path they choose to undertake.  As we grow our community and add new business, hopefully these talented young people will find career opportunities in this area.  Businesses will be attracted by our talented workforce, and new graduates will be attracted to quality jobs, and that is how our community will continue to thrive.

“Tullahoma’s diverse economy, our strong entrepreneurial sector and quality of life ensure that we will continue to attract both private and public investments.  We continue to work with the Tullahoma Area Economic Development Corporation (TAEDC) to recruit new businesses and to assist our current businesses by providing training, marketing, and expansion funding.  We currently offer two commercial and small business loan programs geared towards job recruitment and retention and new business start-ups. 

Planning for the Future 

“While our city board failed to adopt the “Think Tullahoma 2040” Comprehensive Development Plan as initially submitted, the city, through the Tullahoma Regional Planning Commission and the Community Planning Development Committee, is preparing to make necessary changes to our current plan. Looking back over the past year’s planning and codes activities some volume statistics are of interest:

•       5 re-zoning applications

•       8 variances

•       3 zoning ordinance/subdivision regulations amendments

•       17 home occupation permits

•       23 subdivision applications (6 major) creating 362 new lots

•       Approximately 38 additional new houses were constructed

Looking ahead for the following year, our planning commission will be considering the following:

• Complete and adopt revision to the 2011 Comprehensive Plan

• Consider administration of the Eastern Gateway Grant for the South Anderson Street

    Multi-Modal Improvements

• Continue administration of the Cedar Lane Grant for the study of corridor Improvements

• Continue discussion with Motlow regarding a Greenway connection from Campus to City

Capital Improvements 

“As we look ahead, this will be another unique new year in terms of the availability of significant levels of one-time, Federal and State funding that will be used to support capital projects and infrastructure.  As Mayor, I will work with the City Administrator and Aldermen to develop a 5-year Capital Improvement Plan that will prioritize projects for completion in 2024-2028, including the available American Rescue Plan funding. We are soon to complete over $5 million in sidewalk improvements, street paving, and public safety equipment. Additionally, we were just notified of approval for a $2 million state grant that will match ARP funds for much needed stormwater and drainage improvements.  The Board is also contemplating issuing debt for building repairs, paving, sidewalks, and completion of many of our parks programs including installation of restrooms and pavilions.

Implementing the Vision – This Year’s Budget 

“Each year our budget is a step in implementing the vision of the Board of Mayor and Aldermen and the citizens of Tullahoma.  In addition to maintaining our on-going programs and services in an efficient and effective manner, this budget has two primary focuses:  the addition of Student Resource Officers at all our school buildings and funds for road paving and repairs.  Through the use of sales tax and state grants and some reserve subsidy, we are able to fund both of those priorities without a property tax increase.

“Citizens should also stay tuned for more information on upcoming capital projects and programs as we are expecting this to be an exciting year for new recreation and parks programs, and improvements to our facilities.

“I would like to thank my fellow Board members as well as our interim city Administrator, Finance Director and department heads for the teamwork and collaboration to develop this document to provide quality services to our citizens in a cost effective manner.  I would also like to thank all of our city employees.  The City runs on its employees and we are fortunate to have some of the best! Thank you!”