Cleveland City Council

p. 438 REGULAR SESSION JULY 14, 2025 3:00 P.M. MINUTE BOOK 32 BE IT REMEMBERED THAT THE CITY COUNCIL OF THE CITY OF CLEVELAND, TENNESSEE MET IN A REGULAR SESSION THIS MONDAY, JULY 14, 2025 AT 3:00 P.M. AT THEIR REGULAR MEETING PLACE IN THE CLEVELAND MUNICIPAL BUILDING. Present and presiding was Mayor Kevin Brooks. Also present were Vice Mayor Johnson, Councilwoman McKenzie, Councilmen Bill Estes, Tom Cassada, David May, Duane Goff, and Dan Moore. Others in attendance were City Manager Joe Fivas; Shawn McKay, Assistant City Manager/CFO; City Attorney John Kimball; Christy Brandon, Assistant City Clerk; Sue Zius, Administrative Coordinator; Beverley Lindsey, Assistant to the City Manager; Police Chief Mark Gibson; Fire Chief Chris Bates; Dustin Roberts, IT Technician; Tommy Myers, Assistant City Manager/Transportation and Environmental Services; Jonathan Jobe, Assistant City Manager/Development and Recreation Services; Officer Jon Prince; Cathy Andrews, CDBG Coordinator; Jeff Elliott; Cindy Geren, Hal Taylor, Cody Raper, Nat Akiona; Jessica Bigham, Christy Duncan, Kellye Bender, Kelly Kiser, Andy Lay; Cliff Eason, Kim Bradford, Emily Raper, Randall Stephens, Valery Taylor; Alicia Wheeler; Michael Chai, Brandi King, Sara Whitener, Carolyn Ingram, and Autumn O’Bryan with Cleveland City Schools; Linda Cash; Chris and Jennifer Douglass; Johnny Baker; Denise Cassada; Rick Nease; Tony Womac with Cleveland Aquatics; Johnny Baker; Rick and Lisa Hockenberry; Kathy Rohenberger; Margie Keller; Ruth Gamble; John Felgar; Cindi Richardson; Jim Reynold; Jamie Kyle; Barry and Hope Tharp; Trey Parris; Barry Schuck; Michelle Goldston; Demetrius Ramsey; Lynn Voltz; Kyle Page; Rene Diamond; Dwight Goff; Sharon Marr with Mainstreet Cleveland; Mike Griffin and Doug Berry with the Chamber of Commerce; Chris Berry and Ben Berry with Berry Engineers; Garrett Frye with Congressman Fleischmann’s Office; Zach Brooks with Senator Hagerty’s Office; and Tim Siniard with the Cleveland Daily Banner. Following the Pledge of Allegiance to the American Flag, prayer by Bishop Wade Patterson, the following business was then entered into: WAIVE READING OF MINUTES Vice Mayor Webb moved that the City Council of the City of Cleveland waive the reading of the minutes of the Regular Session of the City Council held on June 23, 2025 and approve them as written. The motion was seconded by Councilman May; and upon roll call, the motion carried 7-0. SPECIAL PRESENTATIONS AND PUBLIC COMMENTS Councilman Cassada thanked everyone for attending today’s meeting. He continued that he has the honor to represent the people of the Third District. We've been entrusted with the people, not only to manage what is, but wisely shape what will be. That is what we're talking about today. It means investing in our future infrastructure, economic development, our youth, and the quality of life. Let's choose to invest wisely. The future of Cleveland depends on us and our decision we make today. I just want to reiterate that as we grow as a community, we have to grow our services. It’s inevitable as we grow and if we don't, a wise person once said if you're not moving forward, you’re moving backwards. This is a time we need to start moving forward, if it’s a few pennies, or whatever it may be, I hope we can come out of this where we can move the city forward and do what we need to do in our community. HEARING PETITIONS AND COMMUNICATIONS Mayor Brooks stated today’s meeting is being held as a public hearing to hear public comments on the city’s intent to consider exceeding the certified (tax neutral) property tax rate up to and not to exceed 10.5 cents above the certified property tax rate. The certified tax rate as defined by Tennessee Code Annotated 67-5-1701 is $1.2316. Mayor Brooks asked if anyone would like to speak in favor of exceeding the certified tax rate. Bill Anderson stated specific items he’d like to address are Mouse Creek Road and sports development. Their grandchildren are all involved in p. 439 REGULAR SESSION JUNE 23, 2025 PAGE -439- MINUTE BOOK 32 athletics and believes there is plenty of opportunity to step toward a future that has more involvement in this area. He is not a fan of a tax increase in general, but these specific points deserve merit. We have the past pretty well settled and now we need to look at the future for now. Renea Diamond stated she is a lifelong teacher trying to do what is best for students. You have this important vote ahead of you and speaking on behalf of students. I understand taxes are never popular but if we do not invest in our schools now, the overcrowded classrooms, stressed teachers, and children who don’t get the attention they need we will be turning away families who want to raise their children in Cleveland. We will be telling students they’re expected to do more with less. We don’t want to live in a city that turns its back on its future and doesn’t invest in the next generation. We can’t wait until it’s too late. Please vote yes on this tax for our schools not because it’s easy but because our kids are worth it. Nate Tucker stated he is not only here as a member of the School Board but also as a parent that has students in the system, now both attending Cleveland High School. He asks the Council to have a vision for our next generation in regard to schools. This isn’t just about buildings. It’s about building a future. Every classroom and dollars are spent on investment in the next generation of leaders, innovators, and neighbors. Long term vision is needed and that of education is foundation for thriving city. Carefully planned and executed school projects are part of a legacy of leadership and foresight for our city. I want that legacy for all of us. It is the responsibility of both the Board of Education and the City Council to take care of its citizens and specifically school age citizens. We should make every effort to not rely on other entities to do that. I emphatically believe that those not currently taking care of should be top of mind and priority. Schools are anchors of a community. Strong schools don’t just educate, they anchor neighborhoods, bring people together and bring a sense of belonging. Smart growth requires smart planning. We can’t wait until we are overcrowded to act. Growth is here and smart cities plan ahead. Our request has been made, and it is a fiscal responsibility to move. Delays cost more, in the long run both financially and in the student outcomes especially in overcrowded learning spaces. We have a growing need for families to have quality pre-K programs within schools and the community. Currently most pre-K programs are off site. We need more space to include additional pre-K programs in our elementary schools. My kids attended a pre-K program at Lee University. They have never made less than an A and we contribute to the early learning that they embraced. Every child deserves a seat in a classroom that's built for learning not a converted hallway or shared space. It is our responsibility to ensure all students, including those in special populations, have access to quality learning environments. It is very important for new school construction to have an inclusive design that addresses the current and future needs. This is a partnership between the Board and the Council, and we must work hand in hand to ensure every dollar spent wisely and every voice is heard. That is the expectation and I'm all in for that. This is not just about spending, it's about collaboration, transparency and stewardship. I want to invite you to the general public to stay engaged with us and informed throughout the process. I ask for you to include the schools in this property tax investment. Lynn Volz stated there is nothing more critical to quality of life than infrastructure and the presentation today was very strong and indicated a good approach to the infrastructure of our community. We have attracted industry and additional people because we have a quality of life and lower taxes. However, the presentation was valid and well thought through and certainly deserves the respect from members of the community to increase the availability of funding infrastructure. A recent presentation by Bradley Medical Center that education was the number one indicator to a person’s health is their education. Education is critical. We have two amazing education systems here and they are not irresponsible and have done their homework as well. She thanked the Council for their consideration, and she does support infrastructure. Mayor Brooks asked if anyone else would like to speak in favor of exceeding the certified tax rate. No one else spoke. Mayor Brooks asked if anyone would like to speak in opposition to exceeding the certified tax rate. Ben Asher stated he is a longtime resident of South and East Cleveland and not really opposed for or in favor. Knowing our school system and the infrastructure needs they have is something we have to look at or we will find ourselves in a bad spot. The schools are doing great work and need the support to continue doing a great job as our population grows. A couple of things worth being part of the consideration is the county rates have relatively held the same and arguable with their services those might need to increase as well but there has been a wave of reassessment of properties in Bradley County and many people will be paying more taxes. Some assessments have close to doubled. One thing he’d like to discuss is how those taxes would benefit the east and southeast side of Cleveland with the infrastructure developments, how p. 440 REGULAR SESSION JUNE 23, 2025 PAGE -440- MINUTE BOOK 32 the residents, who will be paying those taxes, would receive the same benefits and have access to the services. Jacob Anderson stated he lives in District 5. He spoke earlier during the work session, but more folks are here, and others have similar sentiments. The tax increase affects not just the ones that pay the tax, but the ones that are living in rental properties. Obviously, those expenses can be passed on. They have about 300 families that will be affected with the proposed rate increase. If you get a higher dollar amount because of the new assessments, you will get a second increase with the rate increase. The total overall is going to be the same, but folks have seen a much higher assessment than others. We are all for education, he has kids in the school system. We want them to have the best education they can. He just hopes we can look at matching the State rate and maybe slowing this down and not just saying go full ahead. There needs to be a compromise made at the very most. Cleveland is a great place, and he appreciates all they do. Mayor Brooks asked if anyone else would like to speak in opposition to exceeding the certified tax rate. No one else spoke. Mayor Brooks declared the public hearing to be closed. CONSENT AGENDA Mayor Brooks stated the Consent Agenda was presented to the Council during the Work Session. Councilman May moved to approve the following items from the Consent Agenda. The motion was seconded by Vice Mayor Webb; and upon roll call, the motion passed 7-0. a. Final Passage - Zoning Ordinance 2025-19 – heretofore passed on first reading May 12, 2025 and found in Minute Book 32, Page 298; Concerning a request by Copper Coin Properties, LLC for consideration of an ordinance to zone about 3 acres, more or less, for property located at 22nd Street NW from FAR unincorporated county to R-1 Single Family Residential and includes Tax Map 040 Parcel 023.01 (Planning Commission: Approved 7-0; 2 absent). b. Final Passage - Zoning Ordinance 2025-29 - heretofore passed on first reading June 9, 2025 and found in Minute Book 32, Page 395; Concerning a request by First Baptist Staff and Council for consideration of an ordinance to zone about 47 acres, more or less, for property located at Stuart Road from FAR unincorporated county to PUD 68 and includes Tax Map 042 Parcels 041.11 and 006.05 (Planning Commission: Approved 7-0; 2 absent). c. Final Passage - Zoning Ordinance 2025-33 - heretofore passed on first reading June 23, 2025 and found in Minute Book 32, Page 427; Concerning a request by Benny Casteel for consideration of an ordinance to zone about 6.65 acres, more or less, for property located at Old Tasso Road from R-2 Low Density Single and Multi-Family to PUD 66 and includes Tax Map 050 001.01 (Approved 7-0; 2 absent). d. Final Passage - Zoning Ordinance 2025-34 - heretofore passed on first reading June 23, 2025 and found in Minute Book 32, Page 432; Concerning a request by Berry Properties LLC to amend PUD 46 to allow a 34-foot-wide lot minimum for rear loading lots along Hardwick Way and a minimum lot size of 3,100 square feet (Approved 6-0; 1 recused, 2 absent). p. 441 REGULAR SESSION JUNE 23, 2025 PAGE -441- MINUTE BOOK 32 e. Bid Report – Automotive Paint and Body Repairs. TO: Mayor and City Council FROM: Kristi Powers, Budget/Purchasing Coordinator DATE: June 14, 2025 RE: Bid Report – Automotive Paint and Body Repairs SUMMARY: The City of Cleveland received sealed bids on June 1, 2025, for Automotive Paint and Body Repairs. Bids are listed below: • Advanced Collision, Inc. Cleveland, TN $26,890.00 _____ • Cleveland Collision Center Cleveland, TN $26,410.00 _____ • Mike’s Auto Body, Inc. Cleveland, TN $23,770.00 _____ COMMITTEE FINDINGS: None. FISCAL ANALYSIS: None. RECOMMENDATION: Staff recommends award to the low bidder, Mike’s Auto Body, Inc. f. Bid Report - Street Striping and Thermoplastic Markings. TO: Mayor and City Council FROM: Kristi Powers, Budget/Purchasing Coordinator DATE: July 14, 2025 RE: Bid Summary – Street Striping and Thermoplastic Markings SUMMARY: Sealed bids were received on June 24, 2025, for the street striping and thermoplastic markings. The bids are listed below: • Highway Markings, Inc. $450,237.50________ • Superior Pavement Marking, Inc. $454,550.00________ • Volunteer Highway Supply Co. Inc. $492,025.00________ COMMITTEE FINDINGS: No Board or Committee findings. FISCAL ANALYSIS: Funding is available. RECOMMENDATION: Staff recommends award to Highway Markings, Inc. (primary contract) and Superior Pavement Marking, Inc. (secondary contract). p. 442 REGULAR SESSION JUNE 23, 2025 PAGE -442- MINUTE BOOK 32 g. Surplus Property – Declaring a 1996 GMC Sierra from the Jetport as surplus property and be sold on GovDeals. TO: Mayor and City Council FROM: Kristi Powers, Budget/Purchasing Coordinator DATE: July 14, 2025 RE: Surplus Property SUMMARY: The Cleveland Regional Jetport has requested the City Council declare the following property as surplus to be sold on GovDeals. • 1996 GMC Sierra VIN: 1GTEC14W2TZ537857 COMMITTEE FINDINGS: No Board or Committee action. FISCAL ANALYSIS: None. RECOMMENDATION: City staff recommends approval of this item. h. Resolution 2025-54 – Approval of the 2025-2026 Annual Action Plan for the Community Development Block Grant Program. RESOLUTION 2025-54 RESOLUTION FOR THE APPROVAL OF THE 2025-2026 ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM WHEREAS, the City of Cleveland, Tennessee will be receiving a CDBG annual allocation of an estimated amount of $360,274.00 for FY 2025-2026; and WHEREAS, public hearings were held on January 14, 2025 and February 18, 2025 to hear comments and input from the public. A draft was available on June 1, 2025, which began a thirty-day comment period ending on July 7, 2025. A copy of the Plan was made available at the Development and Engineering Services Office as advertised in the Cleveland Daily Banner on June 7, 2025; WHEREAS, comments made during public hearings regarding the Action Plan were received and reviewed by City staff; NOW, THEREFORE, BE IT RESOLVED, the 2025-2026 Action Plan be approved by the City Council, and be it further resolved that City staff authorized to submit the plan to the United States Department of Housing and Urban Development (HUD), and be it resolved that the Mayor is authorized to sign all grant agreements, contracts and certifications with HUD that are required to carry out the CDBG program described in the Action Plan. Approved this 14th day of July 2025. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Kevin Brooks, Mayor ___________________________ Shawn McKay, City Clerk p. 443 REGULAR SESSION JUNE 23, 2025 PAGE -443- MINUTE BOOK 32 i. Resolution 2025-55 – Authorizing the Mayor to sign grant contract amendment 1 with TDEC related to the Jim Sharp Park project. RESOLUTION 2025-55 WHEREAS, the City has received the attached grant contract Amendment #1 from the Tennessee Department of Environment and Conservation (hereafter “TDEC”) for the following grant project; and Agency Tracking # 32701-04558 Grant Contract Number 75908 Grant project: Jim Sharp Park WHEREAS, the City Council desires to enter into the attached grant contract Amendment #1 with TDEC for this project and to further authorize the Mayor to execute the same on behalf of the City of Cleveland. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland, Tennessee, in regular session assembled, that the City Council does hereby approve of the attached grant contract amendment #1 with TDEC, and it further authorizes the Mayor to execute the contract on behalf of the City of Cleveland. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Kevin Brooks, Mayor ___________________________ Shawn McKay, City Clerk j. Resolution 2025-56 – Authorizing the Mayor to sign a Letter of Agreement for Additional Services #2 with MHM for the Cherokee Hotel redevelopment. RESOLUTION 2025-56 WHEREAS, the City is proceeding with the redevelopment of the Cherokee Hotel and the adjoining building; and WHEREAS, by Resolution 2023-31 passed on April 24, 2023, the City select McCarty Holsaple McCarty (MHM) to provide professional architectural services for the project; and WHEREAS, in connection with this project, the City has received the attached letter of agreement for additional service #2 from MHM for this project; and WHEREAS, based upon the recommendation of City staff, the City Council desires to accept this letter of agreement for additional service #2 and to enter into the attached letter of agreement with MHM for this project and to authorize the Mayor to execute the letter agreement on behalf of the City of Cleveland. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland, Tennessee, in regular session assembled, that the City Council does hereby approve of the attached letter of agreement with MHM for the referenced project, and the City Council further authorizes the Mayor to execute the letter agreement on behalf of the City of Cleveland. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Kevin Brooks, Mayor ___________________________ Shawn McKay, City Clerk p. 444 REGULAR SESSION JUNE 23, 2025 PAGE -444- MINUTE BOOK 32 k. Resolution 2025-57 – Authorizing the Mayor to sign amendment 1 with WSP USA, Inc, for professional services. RESOLUTION 2025-57 WHEREAS, the City of Cleveland has previously entered into an agreement for Professional Services for the Cleveland Urban Area Metropolitan Planning Organization (MPO) with WSP USA, Inc; and WHEREAS, City staff is now recommending that the City amend the existing agreement with WSP USA, Inc. to add Amendment 1; and WHEREAS, the City Council desires to approve adding Amendment 1 to the existing agreement with WSP USA, Inc., for professional services for the projects described in the attached amendment 1 and to further authorize the Mayor to execute this amendment on behalf of the MPO. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland, Tennessee, in regular session assembled, that the City Council does hereby approve of the attached Amendment 1 to the City’s existing agreement with WSP USA, Inc. and it further authorizes the Mayor to execute the same on behalf of the MPO APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Kevin Brooks, Mayor ___________________________ Shawn McKay, City Clerk l. Resolution 2025-58 – Authorizing the City to purchase a salt spreader for the Public Works through the Master Intergovernmental Cooperative Agreement #062222-AEB. RESOLUTION 2025-58 A RESOLUTION AUTHORIZING THE CITY OF CLEVELAND TO PURCHASE EQUIPMENT, PRODUCTS, OR SERVICES THROUGH A MASTER INTERGOVERNMENTAL COOPERATIVE PURCHASING CONTRACT #062222-AEB, AS AMENDED, WHICH IS ADMINISTERED BY SOURCEWELL, A STATE OF MINNESOTA LOCAL GOVERNMENT AGENCY AND SERVICE COOPERATIVE. __________________________________________________________________ WHEREAS Tennessee Code Annotated § 12-3-1205 provides that any municipality may participate in, sponsor, conduct, or administer a “cooperative purchasing agreement” for the procurement of any supplies, services, or construction with one (1) or more other local governments in accordance with an agreement entered into between the participants, including governmental entities outside this state; and WHEREAS, the Master Intergovernmental Cooperative Purchasing Agreement (“MICPA”) to provide equipment, products or services between ASH North America dba Aebi Schmidt North America (“Company”) and Participating Entities in cooperation with Sourcewell, a State of Minnesota local government and service cooperative, on behalf of Participating Entities, which may include the City of Cleveland, Tennessee, meets the authorized public bidding requirements for the State of Tennessee and allows governmental purchases of equipment, products or services pursuant to this MICPA at discounted contract prices, as permitted by Tennessee Code Annotated § 12-3-1205; and WHEREAS, the City of Cleveland is authorized to participate in this Master Intergovernmental Cooperative Purchasing Agreement provided that it adopts a resolution accepting the terms of the Contract and the City of Cleveland as a participant acquires and maintains documentation that the purchasing entity that procured the bid complied with the purchasing requirements for the City of Cleveland pursuant to Tennessee Code Annotated § 12-3-1205; and p. 445 REGULAR SESSION JUNE 23, 2025 PAGE -445- MINUTE BOOK 32 WHEREAS, the City Manager has determined that the Master Agreement shall be construed in accordance with and governed by the laws of the State in which the City of Cleveland exists as a participating agency and that the City of Cleveland has registered with Sourcewell which allows the City of Cleveland to enter into this MICPA and which is intended to allow the City of Cleveland to meet applicable legal requirements and facilitate access to the Master Agreement and the Company under Contract #062222-AEB, as amended, held by Sourcewell as required by Tennessee Code Annotated § 12-3-1205 (a)(1). NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLEVELAND, TENNESSEE that the City of Cleveland be and is hereby authorized to purchase equipment, products or services as a participating public agency under MICPA Contract #062222-AEB, as amended, held by Sourcewell as required by Tennessee Code Annotated § 12-3-1205 (a)(1) through Sourcewell to be used by the City of Cleveland. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Kevin Brooks, Mayor ___________________________ Shawn McKay, City Clerk m. Reappointment – Beer Board – Donald Humes for an additional 2-year term to expire July 2027. n. Reappointment – Beer Board – Ellie St. Pierre for an additional 2-year term to expire July 2027. o. Reappointment – Airport Authority – Tom Rowland for an additional 5-year term to expire September 2030. UNFINISHED BUSINESS There was no unfinished business. REPORTS OF COUNCIL MEMBERS Councilman Estes thanked Cathy Andrews with her work on the CDBG project. It does so much good in the community. Councilman Cassada stated the ribbon cutting for the Hwy 60 project is tomorrow at 1:30 at the Candy’s Cherokee Elementary School property. People are excited to travel on the roadway. He then thanked Senator Mike Bell for working on the Hwy 60 project and pushing it through the State process. Councilman May had no report at this time. Councilman Goff had no report at this time. Vice Mayor Webb recognized Tommy Myers for helping the owner at 14th/Wildwood with a flooding issue. The owner is very appreciative. Councilman Moore inquired about the status of the pay study. Mr. Fivas stated they are still working on it, but we do have preliminary information. Councilwoman McKenzie also thanked Tommy Myers and Public Works concerning calls about Pleasant Grove Church Road about overgrowth around signs. She appreciates them cleaning the area. p. 446 REGULAR SESSION JUNE 23, 2025 PAGE -446- MINUTE BOOK 32 NEW BUSINESS AND ORDINANCES The following Ordinance was then presented: • Ordinance 2025-35 – Adopting the 2025 Tax Rate (State Certified Tax Rate is $1.2316). ORDINANCE 2025-35 TAX ORDINANCE – YEAR 2025 AN ORDINANCE TO PROVIDE AND FIX FOR THE CITY OF CLEVELAND, TENNESSEE, FOR THE YEAR 2025, AND SUBSEQUENT YEARS, THE TAX RATE ON ALL PROPERTY, BOTH REAL AND PERSONAL; TO PROVIDE A BUSINESS TAX; TO PROVIDE FOR A SPECIAL FRANCHISE PRIVILEGE TAX, IN ACCORDANCE WITH AND AS SET FORTH IN THE “BUSINESS TAX ACT” KNOWN AS CHAPTER 387 OF THE PUBLIC ACTS OF 1971, PASSED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE, WITHIN THE CORPORATE LIMITS OF THE CITY OF CLEVELAND, AND TO FIX A PENALTY FOR ANY PERSON, FIRM OR CORPORATION EXERCISING ANY SUCH VOCATION, OCCUPATION OR BUSINESS WITHIN SAID CITY OF CLEVELAND WITHOUT FIRST PAYING SAID TAX. SECTION 1. BE IT ORDAINED by the City Council of the City of Cleveland, Tennessee, that the tax levy on all property, both real and personal, for the year 2025, and each subsequent year thereafter be, and is, $____ on each One Hundred Dollars ($100.00) of assessed valuation. SECTION 2. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that all persons, firms and corporations engaged in any location, occupation or business within the corporate limits of said City shall pay a business tax to the City of Cleveland equal to and in the same amount as the business tax prescribed to be paid by such person, firm or corporation under the terms and provisions of the “Business Tax Act”, known and designated as Chapter 387 of the Public Acts of 1971, as passed by the aforesaid Act hereto attached, read and understood by the said City Council, and made a part of this Ordinance; and the rate of taxes on such business is made a part hereof as fully as if the same were incorporated in full herein; and the rate of taxes on such privilege and privileges named in said Act for retail businesses shall be as follows: Class 1A 1/10 of 1% retail 1/40 of 1% wholesale Class 1B 1/10 of 1% retail 3/80 of 1% wholesale Class 1C 1/10 of 1% retail 3/80 of 1% wholesale Class 1D 1/20 of 1% Class 2 3/20 of 1% retail 3/80 of 1% wholesale Class 3 3/16 of 1% retail 3/80 of 1% wholesale Class 4 1/10 of 1% and the taxes shall be paid to the City Clerk as provided by law and Ordinances for the collection of all revenues for the City of Cleveland, Tennessee. SECTION 3. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that there is also levied a special franchise privilege tax, in accordance with the provisions of Chapter 311 of the Public Acts of the 85th General Assembly of the State of Tennessee, on all public utility corporations, domestic and foreign, and which do business, own property or operate as a public utility in the City of Cleveland, Tennessee. The base of such tax shall be determined as set forth in Chapter 311 aforesaid. The rate of said tax shall be $_____ for each one hundred dollars ($100.00) of assessed valuation. SECTION 4. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that it shall be unlawful for any person, firm or corporation to exercise the privileges set forth p. 447 REGULAR SESSION JUNE 23, 2025 PAGE -447- MINUTE BOOK 32 and referred to in this Ordinance before complying with the provisions of the Ordinance, and anyone exercising any of the forgoing privileges without paying the tax prescribed shall be guilty of a misdemeanor and liable to a fine on conviction of not less than $5.00, nor more than $50.00, for each such privilege which is exercised without a license, to be imposed by the City Judge of the City of Cleveland. SECTION 5. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that if any Section or part of this Ordinance shall be declared invalid or unenforceable, the invalidity of such Section or part shall not otherwise affect its validity but the remaining Sections or parts of this Ordinance shall be enforced without regard to the Section or part declared to be invalid. SECTION 6. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that all Ordinances or parts of Ordinances in conflict with the provisions of this Ordinance are hereby repealed; however, this Ordinance shall not be the exclusive means of taxation within the City of Cleveland, Tennessee, but is in addition to any other valid Ordinances in existence at the present time by which the City may collect a tax or taxes, and this Ordinance shall take effect from and after its passage, the public welfare of the City of Cleveland requiring it. Signed in Open Meeting: ____________________________________ Councilwoman McKenzie __________________________ _____________________________________ Kevin Brooks, Mayor Councilman Estes ATTEST: _____________________________________ Councilman Cassada ___________________________ _____________________________________ Shawn McKay, City Clerk Councilman May APPROVED AS TO FORM: _____________________________________ Councilman Goff _________________________ _____________________________________ John F. Kimball, City Attorney Councilman Moore _____________________________________ Vice Mayor Webb Mayor Brooks stated two Councilmen have requested to speak on the tax rate. Councilman Cassada stated he’d like to go through the list of proposed projects and then moved to approve 0.03 cents for two new schools. The motion failed for lack of a second. Councilman May said he thought we’d set a rate or are we go through every item to vote on to decide a rate? Councilman Cassada stated he was going through a process. Councilman Goff stated he’d like to speak before voting on a tax rate. Councilman Goff then read the following statement Mayor, Council Members, and Citizens of Cleveland: Let me begin with a principle that guides every decision I make on this council: fiscal responsibility. Every dollar we spend comes from someone’s hard-earned paycheck. Whether it's a business owner, a retiree on a fixed income, or a young family trying to make ends meet — every tax dollar matters. It’s not our money. It’s theirs. And we have a duty to be wise stewards of it. When I ran for this seat, I promised to prioritize responsible growth — not just growth for growth’s sake. That promise still stands. Let’s start with infrastructure. As a city, we voted to narrow Inman Street — a road that was already manageable — while continuing to overlook more urgent needs on Michigan Avenue, Freewill Road, and Mouse Creek Road. These are key corridors for our growing community, especially if we want to support future projects like a multi-purpose sports complex. p. 448 REGULAR SESSION JUNE 23, 2025 PAGE -448- MINUTE BOOK 32 We chose as a city to renovate the Cherokee Hotel and repurpose it as the new city hall. I get asked multiple times a month from frustrated citizens “How much have we spent on that building?” The project has continued to rise in cost and is multi millions over original budgets. I understand that the scope of the project has changed several times and of course at this point, we have no choice but to complete it. However, citizens can see a lot of tax dollars being used at that building. These are tax dollars committed that now cannot be used for some of these other issues we’ve discussed. We all agree our downtown is beautiful, but visitors still don’t have a clear or direct way to access it. Projects like the 3rd Street connector might help, but the lack of an I-75 exit at Harrison Pike continues to hold downtown back from reaching its full potential. We need to work with our state representatives to make this project a top priority. Regarding paving: while the budget is currently lower due to inflation, let’s acknowledge the visible progress. There’s road work and repaving happening all across Cleveland. Yes, costs are rising — and we’ll need to address this rising cost — but waiting another year is not cripple our road system. On to Housing Cleveland needs more affordable housing, but rising costs are making that harder every day. Cleveland Utilities recently doubled its connection fee in its newest budget— increasing that fee by $2,200 per rooftop. That sharp increase does not reflect the actual cost to provide the service and places an unnecessary burden on builders and, ultimately, on families trying to buy a home. If we’re serious about affordability, these fees need to be re-evaluated. You can contact Cleveland Utilities board members to discuss that further. Consider the numbers from the last five years: Home prices have increased 84% — over 16% per year. Rents have increased 68% — over 13% per year. While Wages have increased only 9% — less than 2% annually. That gap is putting real pressure on working families. Cleveland’s median household income is about $60,000/yr. We can’t keep adding to the cost burden and expect housing to remain within reach — not when wages continue to lag this far behind. Education: It is critical!!!— but we have to be honest about whether we’re investing wisely. Recently, the city school system was given a multi-million dollar commercial building — which was previously on the tax rolls. By accepting the property, they effectively removed a major source of tax revenue, shifting that burden to the taxpayers. They then invested in renovations to the building and exterior, creating one of the nicest administrative buildings in the state. Meanwhile, instead of saving for new school construction, funds are being directed toward community closets and non-instructional programs. And yet, we no longer offer driver’s education — even though Cleveland ranks 13th in vehicle collisions per capita across Tennessee’s 95 counties. There are deeper questions we must ask: Why do we as a city school system spend $1,900 more per student than the county system? Why do we spend nearly the same amount on maintenance despite having 8 fewer buildings? p. 449 REGULAR SESSION JUNE 23, 2025 PAGE -449- MINUTE BOOK 32 Why do our city students have fewer Career & Technical Education opportunities, despite paying higher taxes? Why are 1,300 city students VOLUNTARILY attending county schools? Why is the city school system so top-heavy on administration? Why hasn’t the city school system grown in number at the same ratio alongside our population? Why is there so little collaboration between city and county education leaders? Why does the city and county school system scream they are at capacity yet they have been spending tax dollars on advertising on the radio and other platforms? We function as one community — but our school systems act like rivals instead of partners. The school board says they want to work with the city — but from my seat, it often feels more like a handout than a handshake. True partnership begins with fiscal discipline. The city school system already receives approximately 40% of our property tax dollars and the question I hear from citizens is: “How much is enough?” That’s why I’ve been calling for months to bring in a third-party expert to help evaluate our options — including school district consolidation or city district secession. Instead of receiving the third-party expert I’ve asked for, I’ve gotten shifting plans and inconsistent messaging. The city council and school board did form an ad hoc committee to build a better plan — but to date, they’ve only met a couple times. I’ve seen no meaningful progress. I am hopeful that this new committee will hire the 3rd party expert I’ve been asking for to help us navigate these important decisions. I want to urge the city school board to look at these questions I’ve presented seriously, and hold the school system accountable for helping themselves through better budgeting — so that when requests for new schools come along, they can meaningfully participate in the cost. There is no easier money to spend than someone else’s. Currently, we have a balanced budget. I’m not opposed to a tax increase — if and when it’s truly needed. But right now, I’m not convinced. Especially not while interest rates remain high, and state and federal governments are doing what they can to cut taxes, not raising them. Funding a sports and event complex would be great. But based on the numbers I’ve seen, it would cost $90 million or more to fully build not including an aquatic center— and that doesn’t include ongoing operations, which would likely break even at best. I appreciate that the city is exploring a mix of options, including: Hotel/motel tax - liquor taxes RIDA infrastructure investment tools Tax Incremental Financing Districts I would also suggest the city consider Sales Tax Increment Districts and public-private partnerships. For example, Westmore Church of God have offered to donate over 30 acres of land for this very purpose. The FCA organization has verbally committed to large sums of funds to help make some of these outdoor sports facilities happen yet I’m unaware of any progress on that option. p. 450 REGULAR SESSION JUNE 23, 2025 PAGE -450- MINUTE BOOK 32 We still don’t know exactly where these proposed facilities would go, or have a solid plan to fund them initially much less sustain them for long-term. Meanwhile, interest rates are expected to drop in the near future. If we wait for borrowing costs to come down, we could save millions in interest — money that could go into roads, parks, schools, and public safety instead of debt payments. Now is the time to finalize the plan, not rush into high-interest debt that could have been avoided with patience and strategy. And let’s not ignore the issue of public trust. For months, we told residents their taxes weren’t going up — that the reassessment would balance things out. Now, suddenly, a rate hike is on the table. Even though what we told Cleveland citizens is technically accurate, it feels like sleight of hand. At best, it’s poor timing. At worst, it’s perceived as dishonest. That’s why I believe we need a cooling-off period between reassessment and any tax rate increase — to rebuild trust and provide clarity. One area where I believe we should move forward now is the Empowerment Center — a facility to support those who are temporarily homeless or in transition. We already have $1 million allocated, and both the city and county have committed additional funds. But we still lack key details: How much funding do we actually have on top of the $1 million? Where will it be built? What will it cost? An additional county contribution is likely required. Will they agree? If a site has been identified, we should move forward and use available funds. The city expects to have nearly $700,000 in free cash flow this year. We also have ample reserves in our general fund— and this is the kind of project that justifies using them. We can make real progress without raising taxes. We need to keep planning for the future. We know we’ll need a new fire station soon. Let’s take time to evaluate the right location and the best way to fund it. Last year, we had a free site offered through a proposed annexation on Michigan Avenue — but this council voted down the free site and all the commercial revenue it would have brought into the city. That was a missed opportunity and we have to do better. We should also finalize a list of city-owned buildings that can be sold after City Hall is complete. Maybe those proceeds can help fund the fire station. More than once, I’ve been the lone “no” vote on spending increases. Not because I’m against kids. Not because I’m against progress. But because I believe in asking hard questions, making smart decisions, and planning for five, ten, even twenty years down the road — not just the next budget or election cycle. We’ve had a strong economy for a decade. But cycles repeat. A recession is likely on the horizon, and now is the time to tighten up, not stretch further. Let’s not govern by tradition — let’s govern by principle, prudence, and purpose. Let’s lead this city with the same common sense and accountability we’d expect in our own homes and businesses. Let’s lead with transparency and with respect for the people who trust us to make the right decisions. Thank you for listening p. 451 REGULAR SESSION JUNE 23, 2025 PAGE -451- MINUTE BOOK 32 Councilman Cassada moved to fund an additional $0.03 cents for two new schools. The motion failed for lack of a second. Councilman Cassada moved to fund the Indoor Event and Aquatics Center, a new fire station, and one new school ($0.0250 cents). The property is being given to us and placed in a development that will have a huge impact on our community. The motion failed for lack of a second. Councilman Estes stated we have to get through this today. The reason we have the lowest property tax, both city and county, is because we’ve made infrastructure investments to bring in businesses. We wouldn’t have half of the industrial park built out if we hadn’t put our part in. People come, they want to see greenways, schools and Lee University. They don’t come for low taxes but for TIF’s and PILOTS. Investment is spending money upfront. We don’t know what interest rates will do, but when they come down, we refinance, to save money. He agrees with Councilman Goff’s on public trust, but we have to invest and that’s what keeps the rate down. Small incremental steps, like nine cents. That is a small increase when you look at other K-12 districts in Tennessee. He is not sure how we could better serve our citizens than having such a small rate. He has a fear of regressive taxes, and it will hurt the growth. We can’t solve a housing problem through zoning, through taxes but we can grow, provide more housing possibilities/options and let the market decide. We know we are struggling with housing. We’ve seen it. We need to provide better schools; we provide them the support. An investment, if you can wrap your mind around it, will keep taxes down. Councilman Cassada then moved to fund 0.09 cents, which is everything on the list except one school ($1.3216 tax rate) and the money be allocated to each project. The motion was seconded by Vice Mayor Webb. Vice Mayor Webb then stated he has never been a fan of property taxes. The State of Tennessee, the decision has been made that’s how they will fund local governments with the sales tax and property taxes. Until that is changed, we have no real alternative. Property taxes are based on someone’s opinion of your appraisal, not on hard facts. That is what we have to live with. He has seen the problems that are causes getting behind on infrastructure. It doesn’t matter if it’s schools, fire or animal control. Once you get behind it is hard to catch up and maintain the current level of service or improve the service. He is willing to support nine cents, as allocated in previous conversations. It is time to do the right thing for the City of Clevland. Councilman Estes asked that the record be clear for his vote. It is a total package, not just about schools. This is a vote for all of Cleveland. Councilwoman McKenzie stated this is not an easy decision and she has given it tremendous thought, trying to figure out what we should do. We have seven different opinions. I’m not necessarily for a tax increase. I’ve always said no tax increase. Having said that, I want to say I’m very mindful of what a tax increase could do for certain portions of our city. We are looking at homelessness. I think it can have an impact. If we do a tax increase and don’t do it the right way, which in her opinion is over a period of time. It’s about timing and feels we could hurt some of the people in our community. Everything on the list has its own merits and would improve the City of Cleveland but feels we should do it over a period of time. She is not for nine cents but a smaller portion. She then asked if any of the projects could be bonded. Mr. Fivas responded we would need to discuss it with the financial advisors to give you a solid answer. Mayor Brooks stated we have a motion on the floor. Upon roll call, Councilman Cassada, Councilman Estes, and Vice Mayor Webb voted aye. Councilman May, Councilman Goff, Councilman Moore, and Councilwoman McKenzie voted not. The motion failed 3:4. Councilman Estes then moved to fund 0.0750 cents for everything except schools. The motion was seconded by Councilman Cassada. Councilman Estes then stated this is a direct vote for or against the schools. Upon roll call, Councilman Estes, Councilman Cassada, and Vice Mayor Webb voted aye. Councilman May, Councilman Goff, Councilman Moore, and Councilwoman McKenzie voted no. The motion failed 3:4. p. 452 REGULAR SESSION JUNE 23, 2025 PAGE -452- MINUTE BOOK 32 Councilman Cassada moved to fund the Indoor Event and Aquatics Center, a new fire station, and one new school ($0.0250 cents). The motion failed for lack of a second. Councilman Cassada moved to fund the Indoor Event and Aquatics Center, a new fire station, paving and an animal shelter ($0.0350 cents). The motion failed for lack of a second. Councilman Goff moved to adopt the State Certified Tax Rate of $1.2316 as the 2025 tax rate. The motion was seconded by Councilman Moore. Councilman Estes offered a substitute motion to add Family Transitional Housing Investment of 0.005. The substitute motion failed for lack of a second. Councilman Estes stated he heard a colleague say he was for transitional housing. Councilman Goff replied yes, and I easily laid out how we could pay for it without raising the tax rate. Councilwoman McKenzie offered a substitute motion to fund one school, Mouse Creek Widening Project, Indoor Events and Aquatics Center and Family Transitional Housing for $0.0316 ($1.2632). The motion was seconded by Councilman Estes; upon roll call, Councilwoman McKenzie, Councilman Estes, Councilman Cassada and Vice Mayor Webb voted aye. Councilman May, Councilman Goff, Councilman Moore voted no. The motion carried 4:3. Mayor Brooks stated final reading of the tax ordinance will be held at the next meeting. ANNOUNCEMENTS Mayor Brooks announced the following: a. The next City Council meeting will be held on Monday, July 28, 2025. ADJOURNMENT There being no further business, Mayor Brooks adjourned the meeting at 4:10 p.m. _________________________________ _________________________________ Mayor City Clerk