City Budget gains final approval, council also approves hotel/motel tax and derelict hotel's days are numbered

Crossville city council has approved the third and final reading of the budget for the upcoming fiscal year and approved an unchanged tax rate at 59 cents per $100 of assessed value.

The first version of the budget presented to the council stood at $1.5 million red and with a number of items removed and a few other items added to the budget the final version came in at just over $1.1 million in the red. Because the city has over $12 million in the general fund balance, the city finances are not in the red but the annual expenditures exceed the estimated revenue for the fiscal year.

Crossville City Council, L-R, J.H. Graham, Danny Wyatt,

Mayor James Mayberry, Pamala Harris, and Scot Shanks.

The city's budget shows revenue totaling $19,425,353 and expenses of 20,597,073 with a final deficit for the year of $1,171,720.

Budgeted spending totals for the Police Department stand at $4.1 million, the Fire Department at almost $2.9 million and the street department at almost $2.4 million. Those 3 department's expenditures make up nearly half of the city's general fund budget.

The city's water and sewer budget do not utilize tax funding and their revenue is from the sale of water and sewer service.

The property tax rate of 59 cents, unchanged from the previous year was approved under the consent agenda and the budget was approved unanimously during the meeting. A public hearing on the budget elicited no comments from the citizens.

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Council also unanimously approved putting the hotel/motel tax into place on hotels operating within the city limits. This would go on top of the county hotel/motel tax that has been in effect for a number of years. The city adds 2 percent on top of the 7.5 percent tax the county charges and all these fees are over and above any sales taxes.

Council approved the request of property owners along a block of Thurman Avenue to return the road to two way traffic. The road has been one way for several years. The road is somewhat narrow and the planning commission had not approved the change but the city council has the final say on the matter and it was approved with 4 votes in favor and council member Pamala Harris abstaining. The parking along the road will be left alone.

Council approved a reduction in the inspection fees for the construction of the new Crab Orchard School. The fee to the county would be $21,000 but instead, the city council approved charging the cost of the time and travel not to exceed $7,000.

Under the city attorney's report, Will Ridley reported to the council that the court had approved the city's request to demolish the condemned Inn of the Cumberlands at Tennessee Avenue and Sparta Highway. Ridley said he was not seeking council approval for that action yet as he was still looking into some property ownership issues.

Condemmed Inn of the Cumberlands

Under public comments at the council meeting, downtown property owner Shirley Hughes expressed concern about parking in the downtown area especially about workers using space all day that are in front of other businesses. Hughes said she felt that there needed to be a parking lot for workers, especially county courthouse workers that would not interfere with downtown businesses.   

Crossville Council votes to seek demolition of Inn of the Cumberlands

In the nearly two years since the City of Crossville condemned the old Inn of the Cumberlands structure on Sparta Highway at Tennessee Avenue the owners have done nothing to alleviate the problems with the building.

The city council heard a report on the situation during their January meeting from city attorney Will Ridley. Ridley reminded the council they had discussed the property in their recent closed executive session and the possibility of filing a lawsuit against the property owners. According to Ridley, the property has been through the administrative hearing process.

City Attorney Will Ridley

“We have worked with these property owners almost continuously for the past two years and received promise after promise that changes would be made and that has not occurred,” explained Ridley. He added that the property was set to go on the tax sale the following week but the owners paid the minimum amount to pull the property out of the tax sale.

Inn of the Cumberlands

Ridley told the council, “What I'm asking you today is if you are ready to move forward with and authorize me to file suit in Chancery Court to seek a demolition of the property. And I want you to be aware up front that this will not be a property that we make out money back on.” According to Ridley, the city will be paying to demolish the property but because there are so much taxes owed to the city and the county that will have to be paid first. In addition, there is another lien that may have to be paid before the city is that would be explored in the lawsuit.

Asked about numbers, Ridley said about $70,000 in back taxes were owed and the cost of demolition is estimated by the codes department at $100,000 including tonnage dumping fees. Ridley said one of the partners had purchased a trust deed from the bank but he did not have details on that as nothing has been registered at the courthouse on that trust deed.

Councilman Danny Wyatt said, “Move to approve Mayor. Let's take this to court.” The motion was supported by council member Pamala Harris.

The authorization was unanimously approved.

Council also approved an action against a tenant renting an airplane T-hanger at the Crossville Memorial Airport that is being used to house an RV and not an airplane. According to Ridley, the use is disallowed in the lease and the tenant has also not held proper insurance for several years.