Elizabethtown City Council Special Meeting - September 22, 2025
Elizabethtown City Council Special Meeting - September 22, 2025
The Elizabethtown City Council held a special meeting on September 22, 2025, at 6:22 PM (local time). The meeting included second readings of three tax ordinances, approval of two municipal orders (naming rights for the historic state theater and sale of city-owned property), a presentation from the new property owners, updates on the outdoor music venue, and a detailed gas rate study presentation. All votes were unanimous (6-0).
Consent Calendar
- Approval of Minutes: Minutes from the September 15, 2025 meeting were approved unanimously.
Public Comments & Testimony
- Dewey and Kelly Cruz (Cruise Properties LLC): The new owners of 710 and 712 East Dixie Avenue expressed gratitude and outlined their plans for Deucers Homemade Ice Cream and Bakery, emphasizing community involvement and family legacy. Council members praised the family's long-standing contributions to the community.
- Heartland Harvest Festival: City staff Beth and Priscilla detailed the upcoming festival on Saturday, September 27, 2025, including a breakfast, 5K, fishing derby, Corvette cruise-in, over 100 vendors, free kids zone, and concerts featuring The Cleverlys, The Mixers, and Montgomery Gentry featuring Eddie Montgomery. Weather is expected to be 78°F and sunny.
Discussion Items
- Second Reading of Ordinance 23-2025 (Motor Vehicle/Watercraft Tax Rate): Sets an ad valorem tax of 11.6 cents per $100 of assessed valuation for all motor vehicles and watercraft, effective January 1, 2026. Passed 6-0.
- Second Reading of Ordinance 24-2025 (Franchise Tax on Bank Deposits): Imposes a franchise tax of 0.025% on eligible deposits for financial institutions in the city for the 2025 tax year. Includes a 2% discount for payments made in October 2025. Passed 6-0.
- Second Reading of Ordinance 25-2025 (Real and Personal Property Tax Rate): Sets an ad valorem tax of 10.7 cents per $100 of assessed valuation for real estate and tangible personal property. Councilmember noted that since 1983, the city has either maintained or decreased this rate each year—never increased. Passed 6-0.
- Municipal Order 56-2025 (Naming Rights for Historic State Theater): Accepts a proposal from McNolia Bank for naming rights to the gallery space within the historic state theater complex for a five-year period at $20,100 per year. Passed unanimously.
- Municipal Order 55-2025 (Sale of 710 and 712 East Dixie Avenue): Accepts the bid from Dewey and Kelly Cruz (Cruise Properties LLC) for $190,000 to purchase approximately 0.76 acres. The city will provide a boundary survey and Phase I environmental assessment. Passed unanimously.
- Outdoor Music Venue Progress Report: Tim Mattingley (Congleton Hacker) and Paul 50 provided an update. Approximately 60,000 cubic yards of dirt have been moved of a total 250,000; three sinkholes were identified, with two remediated; footings are being poured for the stage; over 500 native species trees will be planted. The project includes a stage, lower bowl seating, upper lawn, parking, and administrative/concession/restaurant buildings. Drone surveys are being used for planning.
- Gas Rate Study Presentation: Scott Heath (Magnolia River Services) presented a cost-of-service study. Key findings: base rates have not changed since 2012; non-gas operating costs rose from $2.5 million (2009) to $4.2 million (FY2024); the system has run cash deficits of $927,000 to over $3 million annually in recent years. Three rate increase scenarios were proposed (option 2 recommended) to achieve break-even or positive cash flow. For a typical residential customer, the increase would be about $20 per month (28-34% increase). Even after the recommended increase, Elizabethtown's rates would remain below those of neighboring systems. Council discussed the need to expand the customer base to help absorb costs.
Key Outcomes
- All three tax ordinances (23-2025, 24-2025, 25-2025) passed unanimously (6-0) on second reading.
- Municipal Order 56-2025 (naming rights) passed unanimously.
- Municipal Order 55-2025 (property sale to Cruz family) passed unanimously.
- Next regular meeting: October 13, 2025 (October 6 meeting canceled for fall break).
- Gas rate study: The council will consider the recommended rate increase (scenario two) at a future meeting. No immediate vote was taken.
Meeting Transcript
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