City budget work mostly finished with $1.9 million deficit to come from fund balance. First reading approved.

City budget mostly complete with deficit to be covered by fund balance--public hearing set for June 13 at 5:30 PM.

The marathon evening started with a special called meeting and passing the first reading of the 2017-18 fiscal year city budget in title only followed by a work session on the regular meeting agenda and finished up with discussion to mostly complete work on the upcoming fiscal year budget.

It was a long night for the Crossville City Council.

With the approval of the first reading of the budget and tax rate with no increase in the property tax rate, two readings remain for final budget approval and the council will hold a public hearing on the budget before the council's regular June 13 meeting at 5:30 PM. The second reading is expected to be on that agenda with a third and final reading tentatively set for near the end of June.

Because this is the reappraisal year, the state will certify a new tax rate that is expected to drop sightly due to the increase in value of real estate to keep the revenue to the taxing authorities consistent in light of those changes.

The budget and tax rate ordinance was approved under the called meeting's consent agenda with 4 yes votes as council member J. H. Graham was running a few minutes late to the meeting.

Crossville City Hall

Following the work session discussion on the budget including some decisions on the non-profit or outside agency donations, the final budget stands at $1.9 in the red. The deficit amount includes around $1.5 million in capital projects funded by the city. After paying off the short term notes listed below, the deficit will be taken from the expected end of year fund balance of $14 million leaving the city still with some $12 million in the bank as a “rainy day” fund.

Council also approved updates to the city's tree ordinance that will allow the city to remove trees that threaten public right of way that are on private property and charge the property owner for the work if they fail to remove the tree after being notified of the problem. Councilwoman Pam Harris asked for clarification and was concerned about disputes between neighbors over trees but that would not be covered under the ordinance, only threats to public right of ways.

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Council also approved paying off short term credit lines that were used to purchase new police vehicles and for paving. The two loans, totaling some $1.5 million will be paid off out of the over $15 million fund balance.

Council spent most of their time on the budget discussing the non-profit agencies and ended up leaving most of the agencies at the same amount as the previous year. Most agencies had been reduced by 10 percent last year and the year before. Discussions included giving increses to the Cumberland Co. Playhouse and the Fair Park Sr. Center. The playhouse was increased over the previous year to $30,000 and the Fair Park was increased to $25,000. At the current time the Chamber of Commerce remains at $77,400, the same amount as last year. The city manager Greg Wood indicated he is working with the Chamber on a contract to document the work they do on behalf of the community as part of their funding.

Crossville council continues whittling on 2017-18 fiscal year budget but work remains.

After two lengthy budget work sessions, Crossville city council has reduced the 2017-18 fiscal year budget by about $500,000.  The difference between estimated revenue and expenses currently stands at $1.9 million in the red.

The Council still has to go through the water and sewer fund budgets but those are separate accounts and those changes have no effect on the general fund budget numbers.  According to city finance director Fred Houston, those funds are in the black as they currently stand.

Council has made no decision on non-profit donations and plans to put off a decision until they see how the budget numbers end up.

Council appears to be unwilling to add the 3 additional firefighters requested by fire chief Mike Turner to enable the department to use smaller trucks to respond to medical calls.  The council has expressed concern that the $133,000 cost for salary, benefits and training would continue annually and increase over time.

The city's 2016-17 for the current year budget was originally approved with a $2.2 million deficit but is now on track to end the year with a $900,000 estimated surplus.  And the previous year for 2015-16 ended with an almost $2.9 million surplus.  The city also has a rainy day fund that tops $10 million.

One proposal discussed would pay off some of the city's short term loans using the fund balance and that would further reduce the expenses for next years budget by some $800,000.  These loans paid for the fleet of police cars, some paving and the city's new radio system in partnership with the county.  Reports are that the radio system is working very well.

Videos from the Crossville city council special called meeting to approvie final action on the city 2016-17 budget.

First action taken on the budget was to increase the water and sewer rates.  Water rates going up 2 percent and sewer rates up by 5 percent.  Because of the finances of the department, a rate increase has been required by the state comptroller's office.  The comptroller's office wanted the rates increased all at once though in the discussion it was revealed that former city manager David Rutherford had negotiated a phase in of the increase.

Water and sewer rate increase discussion

Though the council says it wants to complete the downtown sidewalk project, the $3 million expenditure and loan was removed from the budget when an amendment to the budget was proposed by council member Danny Wyatt.  The council is waiting for information on the cost of the project if the city hires a 4 man crew that will be dedicated to sidewalk construction and repair.  Numbers on that program are being prepared by city engineer Tim Begley and public works department to be presented at the July regular meeting.

The final version of the city's 2016-17 budget remained in the red by $1.2 million with more than adequate funds in the rainy day fund to cover that amount many times over.  The tax rate remains at 63 cents with no increase over the previous year.

Budget approval and discussion and approval of amendment removing funding for the downtown sidewalk project. 

And the council approved the resolution listing the donations to the outside agencies and non-profits, all reduced by 10 percent from the previous year after a 10 percent reduction to most of them also in 2015-16 as well. 

Action on resolution of donations to outside agencies