Vicky Newman News Herald
The Loudon City Council voted Monday to adopt on first
reading a proposed total municipal budget of about $6.414
million. The the budget proposal includes an
across-the-board salary increase for employees of 3.5
Lynn Mills, city manager, said the largest operation
increases are in medical insurance. Although the city faces
an increase of 25 percent in medical insurance, it is the
first increase in four or five years, Mills said.
Budget categories include:
• Financial and administrative, $531,613;
• Police, fire
building maintenance, $17,700;
department operations, $1.783 million;
department operations, $1.303 million;
lighting and Wharf Greenway project, $282,215;
• Parks and
• General fund
transfers to special projects, $182,291;
Development, $38,000; and
The economic development category includes funding for
Economic Development Agency and Loudon Merchants and
Property Owners Association. It does not include the $10,000
funding requested last month by the Loudon County Visitors
Bureau. Councilman Lynn Milsaps, during the workshop meeting
of the previous week, had stated that he felt the Visitors
Bureau request should be funded, if money was available, but
did not receive verbal support for the statement. However,
it was Milsaps who made the motion to approve the budget
proposal as submitted. Councilman Lewis "Charlie Brown"
Garner seconded the motion.
Despite unavoidable budget increases, the tax rate to fund
the budget - 1.0287 - will not increase for 2010-11, Mills
said. In fact, he said, the city is looking at having a
surplus, because of the planned sale of property on
Elizabeth Lee Parkway in Highlands Businesss Park to
Tennessee Packaging. The public hearing for the proposed
budget is set for June 21, before the regular June meeting,
at 7:15 p.m. The hearing for the tax rate is set for 7:20
The Greenback Board of Mayor and Aldermen, during its May 11
meeting, approved its 2010-11 budget on first reading.
The board is expected to take action on a second and final
reading during its next meeting 6 p.m. Tuesday, June 8, in the
Last Tuesday's proposed budget shows revenues are budgeted at
$151,875 while expenses are budgeted at $131,720. This compares
to last year's actual revenues of $155,524 and expenses of
$168,066. "There's not a whole lot of changes," Mayor Tom Peeler
said. "Sales tax is dropping down, considerably, everywhere."
While the city does not have a property tax, it does receive
local and state sales tax revenues. Peeler reported the city has
budgeted $25,000 for local sales tax revenues and $65,000 for
state sales tax revenues. This compares to last year's sales tax
revenues, which were $28,159 for local sales tax and $68,637 for
state sales tax, according to the budget document. "The way
things are going right now, with the state of Tennessee, we'll
be lucky to make it with $151,875," the mayor said.
The following revenues are also budgeted: city street aid,
$2,300; motor fuel tax, $29,700; telecommunications, $375; beer
tax, $600; state income tax, $2,500; Tennessee Valley Authority
(TVA) in lieu of taxes, $8,000; cable TV franchise, $7,200;
People Promoting Animal Welfare's (PPAW's) lease, $7,200; use of
facilities, $3,000; earned interest, $500; and other income,
Peeler explained the TVA in lieu of funds come about because it
is tax-exempt. "TVA has to pay every city and county in the
state of Tennessee," he explained. "If they got property inside
your city, which they have the substation over here at the
cemetery, so they pay the city this much money."
He noted if there were beer sales in Greenback, the revenues
from the beer tax would triple for the town. He added PPAW's
lease will not change until next year because the town just
entered into a lease with PPAW.
While looking at the expenses, Vice Mayor Sam Jackson said most
of the costs are coming from capital outlay. Peeler agreed and
added last year the city had to purchase equipment, such as a
tractor, lawn mower, back hammer and pickup. "So, this year, we
shouldn't have to buy a whole lot. Everything is running well,"
he said. Still, $5,000 was put in the budget for capital outlay.
The budget shows the following expenses: salaries, $57,000;
payroll tax, $5,000; utilities, $11,000; supplies, $10,000;
insurance, $7,000; advertising, $650; dues, $500; contract
labor, $2,500; professional fees, $3,400; office expenses,
$2,800; repairs, $5,000; postage, $500; telephone, $3,400;
capital outlay, $5,000; police, $3,200; museum, $3,000; library,
$1,650; street lights, $12,000; and miscellaneous, $120.
He noted the board did budget a little bit more for street
lights this year.
Peeler advised the board members to take the budget home, look
it over and see if any changes need to be made.