Lenoir City Council has taken th

Finance Director Maggie Hunt said the property tax rate remains the same at $0.9955 for every $100 worth of assessed value within the corporate limits. She said the upcoming budget features revenue growth.

“I’m thinking (we’re) going to get an influx because of all the residential being built — that’s in property tax,” Hunt said. “Of course, more people, more sales tax.”

The city budgeted a 5% raise for employees.

Included is funding for a public safety training center for county and city police and fire departments. Money for the facility primarily comes from American Rescue Plan Act funds, including $500,000 a piece from Loudon County Commissioners William Jenkins and Rosemary Quillen.

The facility would allow departments to train locally instead of traveling to Blount County and would include a firing range and a tactical training area. Planning for the facility has been in the process for months.

Lenoir City Mayor Tony Aikens said he is excited about the facility and happy the county will help with costs. He said he hopes Loudon will also participate so the center is for all local law enforcement and fire departments.

“It’s a much-needed training facility center,” Aikens said. “… The leadership of Blount County has been so nice to let our police and fire, particularly the police, go over and use their training facility, and we’re beyond that now. Obviously, we’ve got more people living here. Our officers need to stay here in the county where they can respond if need be in case of an emergency. It would just be good overall.”

Aikens said he projects the facility would reduce overtime costs.

Council also approved a first reading of the 2023-2024 budget for Lenoir City Schools, which included an increase in starting pay for certified educators from $44,368 to $50,000 in line with Gov. Bill Lee’s Teacher Paycheck Protection Act. Non-certified employees also received a 5% increase.

The city changed refuse collection fees from $11.50 to $15 per month beginning July 1. Hunt said the increase was a result of new garbage contracts after the sudden departure of previous vendor Brewster’s Services Group.

During the public comment period, resident Wayne Collins voiced concerns over a possible sales tax increase being considered for the 2024 ballot.

Collins said the city was spreading false information when suggesting property taxes have not been raised in years. When property values increased in the latest countywide evaluation, Lenoir City opted to leave the property rate unchanged, which led to more tax collections and effectively a tax increase, he said.

Collins said the city was spending money like “drunken sailors” and the practice needed to stop. He also asked if the city had a rainy day fund.

Aikens said Lenoir City maintains reserves as required by the Tennessee Comptroller of the Treasury, which he said now sit at about $6 million. He said Collins was right that property assessments increased but the property tax rate remained the same.

Regarding an increased sales tax to fund, among several items, a proposed community recreation center, Aikens said that effort is still in the planning stages. He said the city was continuing to survey residents and a decision would be made by an appointed charter committee. Council then would vote whether to put the measure on a ballot, which would be decided by voters.

Aikens said he has heard for years the city must provide facilities and programs for children. He said council could decide to raise taxes to finance those efforts, but he doesn’t want to that and prefers taxpayers decide.

Pat Hunter asked during the public comment period if there was an update regarding the lawsuit between the city and county over improperly annexed property.

City Attorney Walter Johnson said as of the meeting nothing has happened since filing a motion to dismiss and the matter remains pending in court.

In other business, council approved a contract with Lake Sharx LLC for river and lake outfitter rental services at Lenoir City Park.

A second reading and public hearing about the budget is scheduled for 6 p.m. June 26 at the Lenoir City Municipal Building.