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Just before the third and final reading of the FY26 budget at the June 23 meeting of the Tullahoma Board of Mayor and Aldermen, Mayor Lynn Sebourn gave his first State of the City address, directed to the citizens of Tullahoma.

The following is Mayor Sebourn’s address in full:

As we look at the proposed budget this evening, I want to express my thanks to the staff for their diligent work in preparing the draft budget and for the supporting documentation we have received. And I want to thank our alderman for their diligence in reviewing the budget with detailed feedback during our study sessions.

As I look at the state of our city and the budget challenges before us, I would like to emphasize three priorities that have guided my thoughts and decisions moving into this budget year. 

Roads and Infrastructure

For several years now, we have been facing a challenge with maintaining our road paving along with other needed infrastructure improvements. We have had some good progress this year with road projects in particular. The city has restructured William Northern Boulevard to Cedar Lane, accommodating new hotel facilities and improving traffic safety through a new streamlined direct routing.

We also have started a project to improve traffic flow at the intersection of County Club and Kings Lane, a key intersection in our city. Another success this year was the repaving of the downtown portion of West Lincoln Street in 48 hours, a great accomplishment that minimized inconvenience to our citizens and the businesses located there.

Our previous board instructed the Tullahoma City Staff to do a review and bring recommendations on our road infrastructure. That review has been completed. Tullahoma has about 172 miles of road that we are responsible for maintaining. In recent years asphalt costs have increased significantly, about 35% in the past 5 years. Our public works department recommends that our roads should be paved every 16-20 years.

Based on these numbers, it is estimated that at the current cost of paving, in order to repave our streets every 20 years, the annual expense is about $1.5 million a year. The city has increased spending on paving in recent years, but we are still far short, spending about $700K – $800K the last two years. We have received many comments on the poor condition of many of our roads, and the only solution to that is repave on the proper schedule.

Also of concern is the condition of our municipal building where we meet tonight. This aging building is in a deteriorating condition. Recent engineering studies indicate that there will either need to be major renovations to the building or a replacement will need to be sought. Decisions about the path forward have not been determined yet, but we know this is a need for the near future. 

Public Safety

A key responsibility of our city government is the provision of public safety through our police and fire safety. This year’s budget provides needed SWAT Training and training ammo for our police officers; and replacement turnout gear and gloves for our firemen. It also provides 4 replacement police vehicles, a fire vehicle and building maintenance for Fire Stations 1 and 2 through the use of equipment and building reserve funds. 

Economic Development and Tourism

Our city’s economic climate is key to being able to provide our citizens with essential services. Tullahoma’s economy is very strong in retail and commercial business. In combination with our strong health providers’ network and the economic impact of the Arnold Engineering Development Complex, Tullahoma has a strong economy, supported by sales tax of not only our residents but also our visitors.

Our sales tax revenues support both the city government and the city school system. It is imperative that we continue to build our economic engine and work to diversify the types of businesses in our community.

We are fortunate to have a revenue stream with the Hotel/Motel Tax that is dedicated by state law to economic development and tourism. This means that visitors to our city, not residents, provide revenue to support our key economic development partners including the Tullahoma Area Economic Development Corporation, the Tullahoma Airport, the Tullahoma Chamber of Commerce and our partners in tourism development such as the South Jackson Performing Arts Center and Tullahoma Fine Arts Center. Combined, these activities support the location of new businesses in our city, the support of existing business growth, and the promotion of our city to tourists and out-of-town shoppers. We must continue our support of these groups to make sure our future economic growth is strong for Tullahoma into the future. 

Our Tax Base

Our city expenses are paid for by a variety of funding sources, but primary among these are our local taxes in the form of sales taxes and property taxes. Our sales taxes have grown well in recent years with the addition of many new retailers in Tullahoma, but this year sales tax growth is projected to be lower statewide and we are already seeing lower sales tax receipts in Tullahoma compared to the same time last year.

Our property tax growth, however, is much lower because of the way property taxes are controlled by state law. By law, when assessed property values increase in our city every four years after a full county appraisal, our property tax rates are lowered to give the city the same amount of revenue as the previous year. This is known as the certified tax rate. As a result, growth in the property tax only comes through new construction and growth of business personal property.

It has been 13 years since the last increase in city property tax rates. In that time inflation has increased the cost of items about 34% in the US, and our population in Tullahoma has grown about 12%. The City of Tullahoma experiences inflation in its expenses, just like you do in your home budget.

As a result of the need for additional road maintenance and the prospect of upgrading or replacing our municipal building, this budget proposes an increase to the city property tax rate of 20 cents, which is about a 10% increase. For a typical home in Tullahoma appraised at $300,000, this represents an increase of $150 per year in property tax.

The Board of Mayor and Alderman desires to ensure that if a tax increase is approved, steps should be taken to ensure that it is spent on its intended purpose. For this reason the BOMA recently passed a resolution to amend the city charter guaranteeing that a fixed percent of the budget, at least $1.5 million per year, will be allocated to road paving. This will discourage future boards from shortchanging paving to meet other short-term needs.

Above all, our city cannot function without qualified, dedicated staff. Our staff provides fire and police protection, road work, garbage collection, recycling, animal control, maintenance of our facilities and parks, planning and codes, and office support for finance, HR, IT, and other critical functions. This budget provides for a 2% cost of living raise plus step raises for our employees for a total of about 4.5% across the city government. Our staffing numbers remain stable and this budget will ensure we retain our staff and avoid costly turnover. 

Closing Comments

As I conclude these remarks, I want to note a few more accomplishments in our city. Our Parks and Recreation continues to improve our recreational facilities, with the dedication of Joe Moon field, the dedication of new restrooms and concessions pavilion at our Johnson Lane Soccer Complex, and several upgrades to the D.W. Wilson facilities. Our city schools continue to excel both academically and athletically.

It has been my honor to begin my service as your mayor. I thank you all for your assistance, your feedback, and even at times, your criticisms. I look forward to a great year in Tullahoma.