Taxpayers in Morristown can rest easy this year — at the City Council meeting this week the Council asked city staff to bring back the budget without the 6 cent tax increase proposed at the budget workshop last weekend.

Council Member Tommy Pedigo proposed the idea at the end of the council meeting and the proposal was quickly supported by other members.

“The bottom line is, I think, things are expensive enough right now and we have a little bit of extra money in our unassigned fund balance and I feel like that’s what it’s there for — with the gas prices and the price of everything the way it is right now,” he said. “I think I felt like it was time to use that money and not raise taxes.”

He said the city has more than enough funds to provide some shelter this year from the increased costs of hiring nine new firefighters in order to maintain its fire rating.

In a statement released prior to the meeting, City Administrator Andrew Ellard said the firefighters are essential in maintaining the standard of service provided by the Morristown Fire Department.

““Our Fire Department has done a tremendous job in recent years in stretching resources and providing coverage for our six stations with less-than-ideal staffing numbers,” he said. “However, thin staffing in the department stands to threaten the Class 2 ISO rating that the department has worked so hard to maintain. While any tax increase would be unwelcome, we believe that the increase to support fire department service and response is more than justified to protect insurance rates throughout the city, not to mention improved protection of life and property.”

Pedigo said the city is in a healthy place financially. “The recommended unassigned fund balance is around 20% to 25%,” he said, which is the current thinking of many Tennessee communities and well above the 16.7% (two months of operating expenditures) recommended by Government Finance Officers Association. “It used to be 15%, but that recommendation has increased over time. Right now, we’re at about 26% or 27%, which means we’re a couple million dollars above the recommended level. I believe we can use some of that money and still remain within the recommended fund balance range.”

While Council is expected to pass the budget with this maneuver, it is generally considered best practices to pay for reoccurring costs with reoccurring funds, so a tax increase to cover the additional costs of the new Morristown Fire Department personnel may be considered during a future budget cycle.

Council also approved a tax increment financing plan for the proposed Merchant’s Crossing development near South Bellwood Road and Merchants Greene Boulevard.

The project includes two big-box retail sites and several restaurant and retail outparcels.

Under the agreement, future new property tax revenue generated by the development could be used to reimburse up to $5.5 million in infrastructure costs, including road improvements, traffic signals, water and sewer upgrades and stormwater work. Officials said the development is projected to generate about $3.9 million annually in local sales tax revenue and create roughly 480 jobs once fully developed.

New ward boundaries were approved ahead of the 2026 election cycle. Ellard said public comments had been received and he felt that citizens’ concerns have been considered and appreciated.