Cheryl Walker, budget committee chairperson, explained the actions of the budget committee meetings at the May Union County Commission meeting. The budget committee had taken several votes on several parts of the budget: Development (Planning Commission), County Clerk, Sheriff, Special Patrols, Jail (current facility), Fire Protection, Rescue Squad, Libraries, EMS, Debt Service and General Capital Projects; the budget committee did recommend several cuts to the General Fund 101 Budget, but after several tie votes was bringing no recommendations for the other parts.
Some citizens spoke during the public comment portion of the agenda. Mayor Jason Bailey and the commission had moved the public comment to the beginning of the agenda when recent meetings in March and April found people unable to share their concerns, since the commission took action prior that part of the agenda.
The need to move the public comment portion of the meeting became very apparent when the commission voted to send back the Sports Complex Grant before many citizens could share their concerns. Citizens sympathized with the commissioners, while others asked for no tax increase or to schedule the increases for projects over multiple years.
The issues facing the budget committee and ultimately the commission are: balancing the General Fund 101, funding the EMS (Ambulance Service) increases, paying for a new middle school and satisfying the contract to keep the jail certified.
With the cuts proposed by the budget committee, the amount needed to balance the General Fund 101 is $659,975. The increase in the Solid Waste contract is $416,800 and makes up most of this amount.
The budget committee made several cuts to the nonprofit portion and other portions of the General Fund. However, Mayor Bailey noted, and Finance Director Missy Brown highlighted, the fact that cuts to the Historical Society, the Heritage Festival, the Opry, and the Chamber would have no impact on the property tax since they are funded by the Occupancy (Hotel/Motel) Tax. Reducing the Chamber allotment would also require a resolution.
The Opry withdrew its request for funding in FY24. According to the documents shared at the meeting, $460,916 could be taken from other budgets, reallocated to the General Fund, and still meet the Memorandums of Agreement for funding the other budgets. If approximately $200,000 to match the Farmers Grant comes from the Hotel/Motel Revenues, the deficit for General Fund 101 would be covered. In other words, the current tax rate would be enough to fund the 101 Budget.
However, the EMS budget, the new middle school, nor the new jail would be funded. The majority of the increases in the EMS Budget 118 is due to the new pay scale that was passed last fall and is a recurring expense. Questions to Andrew Reed by Commissioner Simmons and others revealed that EMS had its fund balance cut by nearly $300,000 during the current budget and was unable to give its department all of the raises this year. Also, vacant positions that are being filled will make the FY24 budget for EMS 118 greater for FY24.
A tax increase is needed to cover these increases or a cut in service will be necessary, according to Andrew Reed. Without a tax increase, the EMS could be funded from the fund balance or a combination. Commissioners approved a motion to request proposals from third party vendors to determine if the Ambulance Service could be run for less money.
The new middle school was discussed. The current middle school is overcrowded and has students on the stage and in a basement that the state condemned for student use in 1974. Budget committee chair Cheryl Walker explained that the new middle school will cost $41,000,000. But the school system has $4M in ESSER funds plus another $11M in its fund balance to pay toward the school construction. According to schools director Greg Clay, another approximately $500,000 contingent upon the revenues from TNVA could be used toward the annual payment. So even though the remaining $26M would need to be financed, the school system would be paying nearly half of the annual payment. Also the loan on Paulette Elementary will be paid in full in 2026 and the wheel tax if renewed could help pay toward the cost of the school or another project. The school system has gone as far as it can toward financing, but the school board could be ready to begin construction in late summer if commission acts to fund the school. Financing the new middle school for 20 years would be a tax rate increase of 35 cents. If the new middle school is financed for 30 years, the increase would be 23 cents.
A new jail also received the attention of one full meeting of the budget committee but little discussion at the commission meeting. The jail is in the third year of a five-year contract to address the overcrowded conditions and keep the jail certified. To stay certified, the commission would need to make solid plans by hiring an architect and developing a plan, purchasing property, or securing funding or doing some combination of these actions by 2026. A preliminary drawing has been completed.
There are two proposals for the jail. One involves a 135-bed facility and the other involves a 175-bed facility. But both proposals would connect the new jail to the current courthouse and possibly cause the closure of Court Street. Both would remove all or part of the buildings on Court Street, including the Bail Bonding Company and the former Edmondson law office.
Both would extend behind the Maynardville State Bank Building, since it is on the National Register for Historic Buildings, and both would cover the current parking lot where the bank sits. The bigger facility would also demolish the Carr House and extend the jail to Mulberry Street.
So the new jail and the courthouse would comprise two to three blocks of the center of Maynardville. The cost of a new jail is estimated at $30M. The estimated increase in taxes for the $30M for 20 years would be 50 cents. A 30-year loan would increase the tax rate by 41 cents.
Commission approved a motion to purchase the Stiner property across from the courthouse to use for future parking at a cost of $60,000 and contingent on no environmental issues present. The buildings that once were the post office, City Cafe, and later an auction company would be demolished.
Simply put,19 cents will balance the General Fund including the solid waste contract and cover the increase in the EMS Budget. A total of 42 cents would fund the General Fund, the EMS, the solid waste and the middle school. Another option would be to raise the tax rate by 83 cents to fund the jail and the middle school along with balancing the General Fund and funding the EMS.
Commissioners will study the budgets and the various options and meet on Monday, June 12, in the large courtroom to decide on the budgets and the tax rate to fund them.