The City of Henderson Board met in regular session Thursday, May 8, in the Council Chamber of Henderson City Hall.
The meeting began with a delegation to discuss a request from the owner of Heritage Towers, 310 E. University St., for a Payment In Lieu of Tax (PILOT) agreement.
Since 2017, there has been an idea for renovations. The current owner will be leaving around 2027. This pilot will allow an operating budget to support the debt budget. It is a $20 million development budget with $9 million to be made on improvements. This would rely on federal tax dollars and subsidies because the residents have low income.
Extensive renovations would be made to the existing facility.
There would be taxes that the city and county would receive (that both have previously not in the past 42 years), and it was decided that $7,500 would go to the city and $2,500 would go to the county.
The first step is for Heritage Towers to receive a “Letter of Recommendation” from Mayor Terry Bell, and then to file documents to take the next necessary steps forward. It was estimated this would be an 18-year pilot with two years of construction. It was approved unanimously.
The board unanimously approved a resolution for a 3% Cost-of-Living Adjustment (COLA) for employees and standard pay scales for all city departments. All full-time and part-time employees (with the exception of the elected officials and the city judge) will be given the COLA. They also approved the Christmas Bonus Plan for 2025. All full-time employees are to receive Christmas bonus based on the number of years of continuous employment with the city in the amount of $75 per year with a minimum of $150. Part-time employees are to receive $150 flat bonus pay. Bonus pay will be paid in a lump sum on December 1 of the current year and the amount paid is based on the number of total years completed as of December 31 of the current year. This resolution will become effective with the payroll period beginning June 23, 2025.
The board of mayor and alderman discussed and considered the changes to the per call stipend paid to volunteer firemen to respond to fire calls and training sessions. Stipends would be categorized into five classes, based on their certification by the State Firefighting Commission. Class 1- Firefighter II would be approximately $35 per call. Class 2 - Firefighter I would be approximately $32.50 per call. Class 3 basic firefighting could be approximately $17.50 per call. Class 5 – completing certification in Introduction to Firefighting would be approximately $12.50 per call. The Stipend pay and the policy changes will take effect on July 1, 2025. It was unanimously approved..
The board discussed and approved the purchase of a used 2009 Aerial Fire Truck. The city of Henderson Fire Chief Doug Acred spoke with the board about the truck for sale. The only need on the truck is to purchase a new door for the truck that would come from the General Unclassified Budget. Acred gave his opinion that the truck is in good condition to purchase, even with having to purchase the new door for the truck. The price of the fire truck is $400,000.
A resolution was brought before the board on the first reading to increase all sanitation rates by approximately 8%. This will result in an increase of $1.50 per month for residential customers. This will take effect on the first billing with the due date after July 1, 2025. This was approved.
The board also approved an ordinance to increase water by 5% and sewer rates by 10% effective July 1, 2025. The rates to be charged for each residential user or consumer of water per month using meters inside the corporate bounds as follows: for the first 2,000 gallons of water (or less) will be $14.27 (Net). All over 2,000 gallons will add $3.59 per 1,000 gallons. The rates to be charged each industrial use or consumer of water per month using meters inside the corporate bounds will be as follows: For the first 2,000 gallons of water (or less) will be $19.85 (Net). All over 2,000 gallons of water, add $3.59 per 1,000 gallons. All users other than those on the Deanburg system for the first 2,000 gallons will be $22.66 (Net), and $6.43 per 1,000 gallons (over 2,000 gallons). All residential users on the Deanburg system for the first 2,000 gallons will be $28.50 (Net), and $6.43 per 1,000 gallons over. All users other than those on the Deanburg System for the first 2,000 gallons will be $25.53 (Net), and $6.43 per 1,000 gallons over. All commercial or industrial users on the Deanburg System for the first 2,000 gallons will be $30.39 (Net) and $6.43 per 1,000 gallons over.
The board also approved on the first reading a resolution approving the 2025-2026 budget and setting the property tax rate.
City Recorder Jim Garland explained that Property Accessor Beverly Morton is currently in the process of doing a “light” reassessment (not a full reassessment) because of the increase of property.
The law requires the Property Accessor to do an adjustment. All properties, specifically residential properties, are going to be increasing. Morton in doing this has to mail out notices, there must be a board meeting with the State of Tennessee and a tax rate must be created. It’s possible that at the next meeting in June that the tax rate will be certified and known to be discussed with the board. This was approved.
In other matters, the board:
• rejected all bids for the dredging of the East Lagoon. Only one bid was received and Utility Director Darryl Green said the reason for the single bid was because the 90-day time frame could not be met. It was decided to reject all the bids, to allow more time for companies to complete the job and to ultimately rebid.
• authorized a bid of $378,000 to repair the Utility Operations Facility on Record Drive. The bid, by Mid-South Construction Services, also included $15,000 for the roof, $125,000 for exterior doors and interior renovation for $59,000.
• did away with the utility department’s Helping Hands Program which began in 2008. According to Green, there are not enough people involved in the program (only 25 people with $63.54 coming in monthly currently) to keep the program going.
• discussed repairs needed to Water Well No. 6. It was discussed that the last repairs done to this specific water well were in 2017. The city spent over $25,000 on the project. The quote for inspection was $6,825. The board of mayor and aldermen unanimously approved the inspection (for an evaluation) to hopefully have this well fixed before the summertime begins.
• considered bids received on the STBG West Main Resurfacing Project. A block of money around 90,000 a year that must be spent on certain streets with certain projects. The bid went to Martin Paving Company for $235,950 for the city’s portion of the project. TDOT will be responsible for 20% of paving costs.
• considered what to do with two surplus fire trucks. Fire Chief Acred made a recommendation to allow Chester County Fire Station to take one of the engines and try to sell the other one on govdeals.com.
• approved the audit contract for the year ending June 30, 2025 in the amount of $42,000 with Alexander from Thompson & Arnold PLLC.
• considered a resolution allowing for participation in a pre-pay agreement for natural gas purchases with TN Energy Acquisition Corp. (TEAC). TEAC is a nonprofit organization that provides natural gas.