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 City Council set for Called meeting and work session Tuesday June 5 on budget, expanded council and more.

With the addition of a special called meeting before the June work session at 5 PM on Tuesday, June 5 it appears the Crossville City Council will approve the budget and city property tax rate by the regular June council meeting June 12.

With the first reading completed and the second reading on the agenda for a called meeting, Tuesday, June 5 the third and final readings are expected on the agenda of the regular June meeting on June 12. The city's budget is expected to be approved at $1.1 million in the red with some 10 times that amount in the city's general fund balance.

Other items on the called meeting agenda include the first reading of a budget amendment of year-end adjustments to bring the budget to actual expenses, third reading of the ordinance reimbursing the BOE for expenses of the CCHS drainage project and purchases of public works uniforms and a commercial mower.

Following the called meeting at 5:05 PM the council will go into the monthly work session in preparation for the June council meeting. The first item for discussion is a presentation from County Mayor Ken Carey and County Commissioner Wendell Wilson on a proposed expo center. The County is seeking help from the city for the construction costs estimated at $3.8 million. The proposed location for the expo center is between the current Farmer's Market and the Community Complex.

The area in red is the approximate location of the 

proposed County Expo Center.

Council is also scheduled to hear a presentation from Co. Sheriff's investigator Bo Kolloros and police chief David Beaty on a program to train city employees on what to do in the case of an active shooter. The training is called CRASE for civilian response to active shooter event.

Two city charter changes are up for consideration as well. Both have been approved by the council once, approved by the state legislature and each now faces a super majority vote becoming part of the charter. One change would add two additional members to the city council increasing it to 7 total members with a mayor and 6 council members. If the matter is approved it will affect the number of races for the city election in November with one additional 4-year term and one 2 year term on the ballot.

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The other charter change would approve the institution of a 2 percent hotel/motel tax.

Council will discuss a request from businesses on Thurman Avenue between First and Second Street to make the road two way from the current one way. The road was previously a two-way road and was changed to one way several years ago. While the lanes would be narrow, the city street department said there is adequate space though the planning commission has recommended leaving the street as one way.

The area in Green is the section of Thurman Ave

proposed for returning to two-way traffic.

Also on the agenda is the request from the County for waiver of building permit inspection fees on the Crab Orchard School project, installation of a water line on Fox Den Drive, and approval of road closures for the July 6 Rock the Block festival.

A discussion on a proposal of perks and rental fee adjustments for softball, baseball and soccer tournaments is on the agenda and a discussion on paying off water fund loans of about $1.4 million. The loan payoff proposal will save about $14,400 of cash flow each month along with a savings of interest of some $200,000 over the current terms of the loans.