The committee will study the proposal to see if students and teachers will be better served by Signal Mountain creating its own school system or remaining under the Hamilton County Department of Education.
More than a dozen residents spoke out at Monday 's meeting. A few were open to the idea, but the overwhelming majority was against it.
"I think it's elitist," said resident Bob Linehart. 'I think what it does is further separates Signal Mountain from the rest of the county."
"If we did separate off, it's segregation," another resident told council members.
Other parents say they're open to exploring new ideas.
"I wouldn't say that I'm in favor of it yet. I'm in favor of learning more about it," said parent Steve Smith.
The council will take applications for committee members who will listen to community input and study the issue for several months.
Signal Mountain is the second town to form an exploratory committee. Red Bank officials decided last week to form a committee that will also weigh the pros and cons of leaving Hamilton County schools.