SIGNAL MOUNTAIN — The Signal Mountain town council unanimously passed the fiscal year 2026-2027 budget on its first reading. The approved budget does not include a property tax increase, maintaining the rate at $1.1002 per $100 of appraised property value.

The general fund budget projects $10,680,817 in revenue and $10,942,141 in expenditures. A deficit of approximately $300,000 will be covered by cash reserves. Vice Mayor Clay Crumbliss said, "Surpluses have been accumulating for four years."

The budget allocates $250,000 for employee pay increases and $1.1 million for capital projects, including ball field improvements, pool sun deck remodeling, paving, road striping, and equipment purchases.

Council Member Charles Poss said, "In addition to cutting expenses, ARPA funds were used to acquire items that otherwise would have been paid for with property taxes." The council also amended the 2025-2026 budget ordinance to allow adjustments for unanticipated appropriations.

Town officials discussed a sidewalk project in the Old Town neighborhood. Crumbliss said Signal Mountain would not have to pay back Tennessee Department of Transportation money if the project is terminated. TDOT funding approval is expected in early July, with construction beginning in approximately one and a half years. Poss said, "The conditions of the sidewalks are getting worse and the town will have to fix them one way or another." A vote on the TDOT grant will be on the agenda at the next commission meeting.

The council discussed an inclusive playground project and must approve an engineering contract for site preparation at Althaus Park for the future Dahlia Playground.