The city of Tullahoma will not have a property tax increase this year, according to budget documents for the coming fiscal year.
The Tullahoma Board of Mayor and Aldermen held a special-called meeting on Monday, June 3, for the first reading of the FY2020 budget. It was passed unanimously in a 5-0 vote. Aldermen Jackie Duncan and Jerry Mathis were absent.
According to state law, municipalities must have and approve three readings of the budget ordinance in order to accept a budget for their fiscal years.
Last year the city accepted the state’s certified tax rate of $2.4305 per $100 assessed property for Tullahoma residents living in both Coffee and Franklin counties. That rate will remain in effect for the coming fiscal year, according to a draft budget document obtained by The News.
Homeowners in Tennessee are taxed on 25% of their home’s appraised value.
The draft budget also outlined the city’s expectations for the close of the current fiscal year, which ends June 30, and the estimations for FY20.
According to the budget documents, the city expects to close out FY19 with a total of $28,030,312 from its multiple revenue streams. The bulk of this revenue, a whopping $23,523,404, will come from local taxes, with other sources including intergovernmental revenue, licenses and permits, fees and fines and “miscellaneous revenue.”
According to the budget documents, “miscellaneous” revenue can include rebates, refunds, reimbursements for city employee travel, and donations to various city departments, such as animal control.
For FY20, the city anticipates nearly $800,000 more in total revenue, with the proposed budget outlining $28,820,779 for the line item.
On the expenditures side, the city is expecting to appropriate more than $11 million to the city school system. The total estimated appropriation for Tullahoma City Schools for the close of FY19 is listed at $11,054,694. The expense for FY20 is anticipated to be increased by more than $200,000 for a total expense of $11,259,113.
TCS has not yet formally adopted its FY20 budget. The school board will officially set its budget expectations at its June 17 regular meeting.
The city board unanimously approved its second reading of the budget at its Monday, June 10 meeting. Alderman Jimmy Blanks was absent for this vote. The third and final reading of the budget will take place at the June 24 regular meeting of the city board.
Erin McCullough may be reached at email@example.com.