The state's reevaluation of property stirred concerns over property tax increases by many commissioners at the Union County Commission meeting on May 23. Even though County Mayor Jason Bailey and the finance department proposed a balanced budget, questions arose regarding inflation, salaries, insurance, and taxes.
Commissioner Bill Cox asked if the state had sent a recommended tax rate. Bailey responded that the state would certify a reduction in the tax rate to 1.58 from 2.13 due to the fact that the county cannot receive more revenue from the state reevaluation alone.
Commissioner Earl Cox requested the effect of the reevaluation. Bailey answered that if the property appraisal increased by more than 50 percent, then the property tax would increase even at the 1.58 rate. The mayor said that an appraisal that increased 50 percent or less would be the same or slightly lower. Cox replied that most property owners seem to be experiencing a much higher reevaluation than 50 percent.
Commissioner Sydney Jessee Jr. commented that the consumer price index which impacts inflation is at 10.8 percent and the proposed budget only gives a 5.9 percent salary increase with a 5 percent increase in the cost of employee insurance. He further noted that insurance costs had risen some 25 percent over the last four years.
Jessee encouraged finance to shop the insurance. Finance Director Missy Brown assured Commissioner Jessee that her department had checked all major carriers and CIGNA was the best rate with only a 5 percent increase.
Commissioner Debra Keck followed up on the insurance concerns and stated that several employees had told her that CIGNA did not cover many standard procedures and were having to fund several procedures and needed medical assistance out of pocket.
Commissioner Gary England asked if insurance on county buildings was increasing. Brown said she would check on that cost since it was under contract and not due for renewal at this time.
Commissioner Larry Lay noted that if a tax increase is needed, this would be a good time to avoid a future shortfall especially with the possible building of a middle school.
Bailey encouraged the commissioners to study the budget and seek answers to questions by calling him or Brown. He noted that the first consideration of the budget for approval would be June 20.
During the public comments, Scott Simpson recommended using part of the $817,000 fund balance to fund the employee insurance increase that will cost a total of $22,000 so employees could see a true raise. He also asked that the amount of time for a public comment be increased so good ideas have an opportunity to be heard.
Glenda Cooke and Charles Hamilton spoke on behalf of the Union County Historical Society and the Union County Museum. According to Cooke, many repairs to the bathrooms, roof, and HVAC have had to be done as well as make the building more accessible under ADA. Hamilton also said that utilities and routine maintenance had increased by 60 percent. The historical society has asked for an increase to $10,000 in the occupancy tax funds to cover these expenses.
In the Mayor’s Report, Bailey stated that there are no new grants and most of the prior grants are nearing completion. Some of the more recent ones are in the bidding process. The latest home grant will build two new homes and repair several others. He was also pleased to announce that the Union County jail is now completely renovated and state certified.
Sheriff Billy Breeding reported that for April 2022, the department received 625 calls, worked three wrecks with injury, and handled 24 wrecks without injury. The department had121 booked into jail and 133 released to leave 55 inmates currently.
All budget amendments and transfers were approved. Changes were due to grant revenues, to increases in food and equipment costs, to summer school programs, to maximize spending and to move excess funds to the fund balance. Surplus items included vehicles in the Sheriff Department, computers at Maynardville Library, and supplies in the finance department.
The next Budget Committee meetings will be June 21 and June 27 at 6:30 p.m. The next County Commission Meetings will be on Monday, June 6 to discuss the tax rate, June 21 for consideration of the FY23 Budget and June 27 to finish up the current budget and pass any needed resolutions to end the fiscal year. All commission meetings are at 7 p.m. No July meetings are planned at this time.