Crossville City Council OKs Budget $1.1 Million in the Red and Tax Rate on FIrst Reading

Crossville city council has approved the first readings of the city's 2018-19 fiscal year budget and unchanged property tax rate.

Crossville City Hall (file photo)

In a special called meeting the council approved the budget with a $1.1 million deficit that will be covered out of the city's over $10 million general fund balance. New funding from the Hotel/Motel tax is anticipated at $150,000 this year in the budget and some $200,000 annually in future years.

CLICK HERE to download a PDF of the budget.

Council also approved the first reading of the property tax rate, unchanged from last year at 59 cents.

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The tax rate approval was voted on as part of the consent agenda along with other routine budget amendments for the current fiscal year. The motion to approve was approved unanimously by the four council members present. Councilman Scot Shanks was out of town for the meeting.

Councilman Danny Wyatt asked for the budget vote to be taken separately and to have $40,000 in funds from the Hotel/Motel tax to be specifically earmarked for the economic development for possible future partnerships with one of several potential regional groups. City manager Greg Wood explained that all the funding from the Hotel/Motel tax was directed toward economic development and tourism so he didn't feel any additional earmarking was necessary. Wyatt moved to make the change anyway and to approve the budget. Wyatt's motion was also unanimously approved.

Two additional readings of the budget and tax rate are required with the next reading expected at the council's regular June meeting along with a public hearing on the budget. One additional special called meeting will be required to approve the budget by the end of June.

A public hearing on the city's capital improvement plan was held but none of the public attended and no comments were made. The plan was also unanimously approved.

Click here to download PDF of the Capital Improvement Plan.

Council deferred action on a request from the county for a waiver of fees related to inspection of the construction of the Crab Orchard Elementary School. Council requested additional information including an estimate of the time and mileage required for the services provided by the city.

Council approved the purchase of a Jet A fuel truck for use at the Crossville Memorial Airport at a cost of $20,000. The city's portion of the cost under a grant is $10,000.   

Council invited to discuss indoor recreation facility with county building and grounds committee

The Cumberland County commission's building and grounds committee will meet at 4:30 Wednesday afternoon July 6 and have invited the Crossville city council to discuss the proposed indoor recreation facility that is expected to be on the November ballot for a county wide bond referendum.

The meeting will be in the Cumberland Co. Courthouse third floor small meeting room and starts at 4:30 PM.  The public is invited.

The meeting is to discuss the joint operating agreement between the two governments so that the respective attorneys can draft an agreement.  Some basic provisions need to be worked out to move forward with wording the referendum for the ballot.

The referendum  would be capped at a maximum of $20 million expenditure for construction and, if approved countywide, the expected property tax increase would be about 10 cents. The facility would have similar features as the design below but without the outdoor water park.

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