Budget & Finance Committee - Regular Meeting

Okay, it is 4 o'clock. This is June the 18th, 2026. We're in meeting room A. Call the meeting in order, and we have taken roll, and we do have a quorum. Take a motion to approve the agenda.

Make a motion.

Second. Motion by Mr. Hershman, second by Todd. Any additions or deletions? Okay. All those by aye. Aye. Okay. Nobody, public comments? I have no public comments out in the audience. Okay. Minutes? I did not put that on there. I apologize for that. I guess we need to go back now. If you see the minutes from last meeting.

I'll approve the minutes.

Okay. Tina approves the minutes. Second. Second by Roger. Any additions or deletions to those minutes from last meeting? Okay. All those in favor by aye? Aye. Okay. And I didn't know if you had budget amendments or not. I went ahead and put that in there. Okay. We have one budget amendment.

Send them down that way. Two more. You have two? Yep, I got two. Yes, sir.

So this is some more, just end of year cleanup. The first one, EMA, that was due to Bonnaroo overtime. So that's, excuse me, a transfer from deputies down to overtime. And then the second item, insurance recovery, all I did was, This was originally put in 44560 on the second page. I'm taking it out of that and putting it in 49700 Insurance Recovery because that's actually what it was. And number three, opioid abatement. We have one, the Public Defender's Office, it's the state, They get money, they did not spend all their money last year, but the request I just received last week, it includes that amount, so I needed to increase opioid abatement by 5,612 from the restricted funds. And the rest are just either transfers or, oh, on the second page, the other one is the county corner. We've had, unfortunately, a tremendous amount of autopsies, which the county has to pay for. So I had to increase the budget $29,675. So that's like a total of $227,000 for the year. For just autopsies?

Now, where is that one, Ms. Marianna? Is it on the second page?

I noted a number four beside it.

Okay, I see it now. Thank you.

The overtime at Bonnaroo for EMA, does Live Nation reimburse us for that, maybe?

Because we don't know. Okay. Yes, ma'am. Yes. There's food all across in the budget for the whole year.

Yes, I understand. But we could possibly get that back.

It'll just go in as revenue. Yes, okay. As a contribution. So that is an increase to fund balance of $107,863. That brings us to $10,170,977.

I entertain a motion.

I'll make a motion to approve.

Motion by Mr. Hershman.

I'll second it.

Motion by Ms. Keel. Second by Ms. Keel. Excuse me. Anybody questions on this budget? I'm sorry. I've got too many people in my head. I apologize. Okay. Being that there are none, all those in favor by aye? Aye. Okay. All right, new business is our budget.

Okay, we do have the certified tax rate. I signed off on it, Dennis signed off on it, and it was the property assessor signed off on it. It went up just a little bit to $1.43 on the uniform.

Let's see, let me read those off for you.

I meant to print it, but I ran out of time to put it down.

Is there any more besides the 143 or not? Is it like 28 or not?

Have they got any more numbers that pass that 143?

I'm going to read them.

Okay.

The uniform is 1.4389. Thank you. And then the education, which is the Manchester additional amount, is .0360. Okay. That brings the total Manchester tax to 1.4749. And then the total rural property tax is 1.6283.

That includes solid waste?

And the Rural Debt Service, yes. That's actually 1.1534. I know because I don't have it printed. I have this thing that I like. But I was just going to let you know we did sign off on anything. I can go print this in a minute. And then the industrial park only is an additional .1710 which the industrial park Coffee County Industrial Park, the total for that one is 1.7993. That's only the industrial park.

That's the one between us and Tullahoma.

That's the joint park. The joint park is not. It's just in the county rule. This is the one over there.

The one in between us and Tullahoma is the one that we're paying Doug River the money on the substation.

Until 2032. So where we are right now on the left hand side is the estimated deficit on June 30 2026 is $139,007 which brings our estimated fund balance for the end of June this June million 11 million 528 39 and then with the additional revenues and I added in the 3% salary increases plus benefits That brings the deficit projected for June 30th, 2027 to 1,771,288. Fund balance, 9,749,551. That's really about 200 and something thousand better than what we had estimated last week.

And that's with the 3%.

3% salaries and benefits.

I know some people will ask probably Tuesday night what will be the difference between a 2% and a 3%. Can we be ready to tell them?

The difference between moving it at two and going to three?

Well, we're at three now. Right. What would it be if somebody bought to 2%?

It's $158,036. Less. $136,000 less, yeah. $158,000? Yeah. Say, again.

If you go back to two. $158,000 what? $158,036. Okay. Okay.

I just want to be, I'm sure some people will ask. Yeah. So 2%. And that would cover the benefits also? The 2% and the 2% benefits.

Mm-mm. Mm-mm.

So the tax levy and the budget appropriation resolutions that are on the agenda are based on 3% right now. Expenditures equal that $31,999,000.

for everybody's information if you want to put it on the sheet that she gave you if you went to the two percent our projected not actual a projected budget deficit would be one million six hundred thirteen thousand two hundred fifty two instead of the one point seven so that would be the difference between two and the three

Do you have an extra agenda?

Here's one.

And last year when we started we were 1.7.

No, last year we were at 1.4 on this, and this is the sheet that Ms. Mariano gave to us showing us historically, but she came up with it. Okay, I'm sorry. Commissioner Hirschman gave it to me. Ms. Mariano compiled it for him. And I asked her if she could provide us looking at that where we actually ended up each year so that we would be able to explain that, yes, we're starting out with a deficit because of the method that we use to be generous with our expenditures, overestimating them perhaps and underestimating our revenues so that we stay safe. And then I've asked her to tell us how have we historically performed.

Is that it?

Yep. Okay. And so she has come up with that for us. And so did you make a copy for everyone? That's all right. We'll go get some. So that we would be able to explain that, yes, it looks like we're approving a deficit of X, but in actuality, Our history shows us that we come very close to breaking even and that it's doable what we are proposing and accepting to be done and in the best interest of our taxpayers in our county and our employees. And I think it's a good point of reference for us. Thank you, Ms. Mariana.

That was a good one. Not the one that shows the difference. Miss Mann, do you need this back? Is your office unlocked?

Maya, if it is, then I can run it. I don't mind. I can run and do it. I don't want to put you to the trouble, Ms. Mariana.

Who needs one that don't have bees over here? Here, pass that.

Got one coming.

You notice the method we used for the last 10 years, you only see two red numbers.

Yes.

And the biggest of those was in 2025 when it was 285,000, which is not that big of a hit. But we had a budget that was 2.3 million budgeted deficits, not 1.7. There's no need for hysteria here.

I think this might be something good that the public sees.

Yeah, we just need to be able to explain what we're doing.

16, 17, and 18, there was a...

money added to the fund balance. We projected low and the money came in high. In 2019, we were $2,893 short. That was it. 20, 21, 22, 23, 24, we added to our fund balance. In fact, in 24, we added $1,153,000 to the fund balance. Last year, 2020, or year before 2025, we were $285,000 on the red side. But if you look at the trend, two out of 10, in 16, you added a million two. 17, you added 238,000. 18, you added 470,000. In the year 2020, you added 1.36 million, or 1,361,000. In 2021, you added 2 million. 2022, you added 1.5 million. 2023, you added 1.3 million. So that's adding to the fund balance, not coming up short. In 2024, you added $1.1 million. And then the next year, 2025, we were $285,000.

Was there a significant event that happened that I'm being new again. Was there a significant event that happened that year? Yep. Was that a raise? Big raise. A big raise. That's what I thought.

That was our 8% raise plus we did longevity pay all at the same time.

Okay. Okay.

So these numbers can be explained. Absolutely. This is great. This is great information.

And now our longevity phase kind of balanced itself out. Yes. So it doesn't hit you hard like it did the very first.

We knew it was going to hit hard the first year.

Right. But now it's reoccurring and it's smaller numbers now. Thank you very, very much. Because it's stepping in.

Thank you for doing that. Thank you very much. I appreciate you.

I'm gonna make a motion that we approve the budget and the tax certified tax rate as presented at 3% on the Pay raise and Let's move on have a motion I think we've all agreed with 3% so far. I cannot see going backwards. I just don't see that. But, I mean, yeah, somebody's going to ask that question. But I'm not worried about – when I see what I see right now, I'm not worried about this.

Not now.

I'll second the motion. Okay. Seconded by Mr. Malone. All right. Discussion?

I do want to add that they will still be adding new property until – The end of August. It cuts off September 1st.

That's right.

More revenue. And the assessment growth is now at over $40 million, where we had been using $32.5 million.

That's the real and commercial property. Yes.

I feel good about this. I feel good about this.

I think we do this at the three, and then we'll see what we're at next year, okay? And we're in good shape. We're in good shape. That's what I'm looking at. I've got to look for our future down the road. I'm not worried about this one right now, but I am trying to protect the future down the road so we don't get crazy. on spending. I know that we've had a lot of projects this last two years, but it looks like they may be settling down a little bit. We've got some that are finishing up. And, yeah, I'm feeling a lot better with it, like it is.

I feel better when that certificate comes.

Frank, is that enough cars for y'all to be Those five cars that we're doing? Yes, sir. I know they'll be reoccurring, five next year and stuff like that. Is that enough to keep the fleet up to date and safe?

Yes, sir. Projected, what it should do is rotate every shift. When those five come in, one shift will go off, those will go to sale, then the next will come off.

So we're in a good rotation of newer vehicles coming in for our deputies on the road.

If you've got a new car this year, five years later, you should get a new one.

And it should be somewhere around the 120,000 mile range.

But that does not take into consideration the idle hours.

No.

And the where and the beating. I'm just talking straight. Yes, just road miles. But everybody needs to understand those cars sit at wrecked scenes and places and they idle. So that engine has more time on it than.

Than miles.

Yeah, or what a normal person would do with their vehicle. So technically they're just about wore out when we get to five years. We're not replacing the vehicle. Okay, good. So we're in a good rotation with y'all.

anybody I've got one question for miss Mariana I know miss Mariana once a month I believe that all the departments submit where they are with their financial stuff

yes or no oh you do it when i close the hunt usually i get closed by the 10th i run that report with all those funds on it and it shows what their cash cash is well not the individual by funds and then on the other ones it has The general fund with the revenue and expenditures and where we are for each department, yes. And the May one is in your agenda packet for Tuesday. The agenda's been posted.

What my question was going to be, would it be possible for you to compile monthly something that looks like that, that shows how it's moving?

Is that possible? I'm just asking. If you look at the report, I mean, I can do...

Just a sheet that would show us.

Yeah, I email you when I close. I email you a document that has the budget and where we are. It has every line on it.

But there's not just a summary. I'm talking about just a summary that says. Okay, all right then. I'll get you to show me how to find that. That's all right. Not right now. Not right now. I knew you were generating it but I thought it was based on them feeding you information. It's just stuff that you're keeping up with on your own. Got you. Thank you.

Anybody else?

I'd like to make a comment for those listening at home. What we've just been shared with you guys the certified tax rate the rural residents rural property owners only if you take your appraisal and you divide it by four that's the amount of money you're being taxed on the amount of the that is your assessment you divide that dollar amount by 100 you will then multiply that by $1.64, is that correct? I'm just counting.

I'm only talking about rural.

$1.63. Okay, I'm rounding. We don't get into those thousand points. Let me finish, please. The current rate right now is $2.33. So you've just seen a 30% decrease in the actual multiplier that you figured your taxes on. So all of the higher appraisals, just take your new appraisal, divide it by four, divide that by 100, multiply it times $1.63, 62, whatever, if you're in the rural area. Now city people, it's different. It's totally different, because you actually have a city property tax. added on top of it. So everybody needs to understand our tax rate went down so we're revenue neutral in the county. I hope everybody understands that. That's all I have.

Any more discussion? Okay, this is the motion is to approve the budget with the 3% pay raise and the benefits that go along with it and the certified tax rate.

Yep.

Okay. All those in favor by aye? Aye. Chair votes aye. Okay.

Who made the motions? Terry. Terry. And Mark.

I will sign it. Mr. Hirschman and Mr. Malone.

Also, while we're doing this, we need to probably cancel our 25th meeting because that's a week from tonight. There's no sense in spending money when we don't need to. So is everybody good with canceling? June 25th. Yes, sir. We're out. Yes, sir. Okay, and we'll have a meeting in July. Yes, sir. Okay.

Remember, this will be on the agenda this coming Tuesday night for the full legislative body to approve it.

And we don't have a hearing. I got you.

I know what it is.

We don't have a hearing at 5.30.

Yeah, we do. We do have a hearing at 5.30. There's a rezoning near Beech Grove.

Okay. And please, everybody, come.

Okay, I'll be here. That's next Tuesday. 5.30. 5.30.

5.30.

All right. All said and done. Yes, sir. I'll entertain a motion to adjourn.

Motion to adjourn.

Motion by Ms. Jones.

Second.

Second by Mr. Herson. All those for adjournment say aye. Aye. Aye.

Thank you.