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Bill

HB 2663

Tullahoma - Subject to local approval, allocates 3.8 percent of each annual operating budget, but not less than $1.5 million, to the maintenance of streets and roads within the city limits of the City of Tullahoma. - Amends Chapter 553 of the Acts of 1903.

114th Regular Session (2025-2026) Introduced by Rush Bricken

Tullahoma must allocate 3.8% of its annual operating budget (min $1.5M) each year starting 2025-2026 for streets and road maintenance, pending two-thirds council approval.

Signed by Senate Speaker
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Bill Summary · HB 2663

Summary of HB 2663 (Session 114, Tennessee)

Purpose and intent

  • The bill amends Chapter 553 of the Acts of 1903, and any amendatory acts, to establish a dedicated funding mechanism for maintenance of streets and roads within the City of Tullahoma.
  • Starting with the 2025-2026 fiscal year, it requires that a portion of the city’s annual operating budget be allocated specifically for road maintenance, with a minimum annual dollar floor.

Key provisions

  • Funding mechanism (Sec. 34):

    • Beginning with fiscal year 2025-2026, 3.8% of each year’s operating budget of the City of Tullahoma must be appropriated for expenditures dedicated to maintenance of streets and roads within the city limits.
    • In any event, the annual appropriation shall not be less than $1,500,000 (one million five hundred thousand dollars).
  • Severability (Sec. 2):

    • If any part of the act is found invalid, the remainder remains in effect to the extent possible.
  • Local approval requirement (Sec. 3):

    • The act has no effect unless approved by a two-thirds majority of the City of Tullahoma’s legislative body.
    • Approval or disapproval must be proclaimed by the presiding officer and certified to the Tennessee Secretary of State.
  • Effective date (Sec. 4):

    • For purposes of approving or rejecting the provisions, the act becomes law upon the governing body’s approval (public welfare requiring it).
    • For all other purposes, it becomes effective as provided in Section 3 (i.e., upon local approval).

Who is affected

  • City of Tullahoma:

    • The city’s budgetary process would be adjusted to routinely set aside 3.8% of the annual operating budget (capped by the $1.5 million minimum) specifically for street and road maintenance.
    • Local government approval is required (two-thirds vote) to implement the provision.
  • City residents and road users:

    • Potentially better-maintained streets and roads within Tullahoma due to protected funding for maintenance.

Timeline and procedural aspects

  • The funding provision takes effect beginning with the fiscal year 2025-2026, subject to local (city council) approval.
  • The bill’s passage is contingent on a two-thirds vote by the City of Tullahoma’s legislative body; otherwise, it has no effect.
  • Legislative action history shows committee referrals and calendar placements in 2026, with final action pending local approval.

Notes

  • The text does not specify how “operating budget” is defined beyond the general interpretation of city operating budgets.
  • The minimum $1.5 million ensures a baseline funding level even if the city’s total operating budget is small relative to 3.8%.

If you’d like, I can add a short comparison to similar local funding mechanisms in other Tennessee municipalities or draft a one-page explainer for residents.

Compiled from official sources — confirm details with the bill’s official record.

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