The Baileyton Board of Mayor and Aldermen approved the town’s budget on final reading Tuesday night. The board also gave final approval to modernized campground and alcohol ordinances. Preliminary approval was given to a modernized animal ordinance.
Baileyton does not have a property tax, and as such the Fiscal Year 2026-2027 budget includes no tax increase.
The budget includes $636,300 in estimated revenues, mainly from sales tax, and $537,890 in appropriations. Appropriations include $275,680 for general government and $241,311 for the town’s police department.
The town’s fund balance is estimated to increase by about $98,000 in the upcoming fiscal year, resulting in a fund balance of $805,472.
However, the town’s sewer fund is expected to end this fiscal year with a roughly $75,000 loss, similar to a $76,000 loss in fiscal year 2025.
As a result, the Baileyton government has been notified by the Tennessee State Comptroller’s Office that state officials are likely going to force sewer rate action on the town, unless the town increases its sewer rates first.
University of Tennessee Municipal Technical Advisory Service (MTAS) Consultant Brad Peters attended Tuesday’s meeting and provided a brief report to the board.
He noted that he had reviewed the town’s audit reports from the previous three fiscal years and that the financial status of the town’s sewer operations had been trending in the wrong direction.
In fiscal year 2023, the town’s sewer fund ended with a $39,000 net gain, and in fiscal year 2024 the sewer fund saw a $7,000 net gain. However, in fiscal year 2025 the sewer operating fund was hit with a $76,000 net loss.
The board asked Peters and a financial consultant with MTAS to dive deeper into the town’s sewer finances in order to make a recommendation on possible sewer rate action for the town.
That last time sewer rates were raised in Baileyton was 2018, when they were increased 18%. Board members said that any possible increase being considered would be a fraction of that number.
Campground, Alcohol, Animal Ordinances
In other business Tuesday, the board approved an ordinance on final reading involving RV parks and campgrounds.
The ordinance modernizes the town’s campground ordinance according to town officials. The ordinance is meant to serve as a base to at some point address people living permanently in campgrounds in Baileyton. Baileyton Mayor Jamie Tilson has previously stated that he wants the town’s population counted accurately because the distribution of sales tax and fuel tax dollars the town receives from the state is based on population.
The ordinance does not address permanent residence in campgrounds, but defines several terms. The ordinance delineates that a short-term campground is a site where campers stay for no more than 30 nights, while a long-term campground would allow stays of over 30 nights.
The ordinance stipulates that campgrounds will be permitted in R-2 zones or higher, and that new campgrounds will be required to submit a site plan to the Baileyton Planning Commission and comply with state and local regulations. Existing campgrounds will be grandfathered in under the ordinance, and would not fall under the new ordinance unless expanding.
Violation of provisions of the ordinance will result in a fine of no less than $2 but no more than $50. Each day a violation exists would be considered a separate violation.
The board also approved an ordinance on final reading modernizing the town’s regulations on the sale of alcoholic beverages. Previously, the town’s regulations prohibited the sale of alcoholic beverages with over 5% alcohol content by weight. The sale of alcoholic beverages in an establishment containing a pool table was also prohibited.
The updates ordinance allows the sale of beverages that include 8% alcohol, and removes the prohibition on the sale of alcohol in an establishment where a pool table is present’
The board also granted preliminary approval to a modernized ordinance regulating animals and livestock in Baileyton.
Currently, a town ordinance prohibits the ownership of swine in Baileyton. All other animals and livestock may be owned, but may not be kept within 1,000 feet of any residence or public road according to the current ordinance.
According to the modernized ordinance given initial approval Tuesday night, the prohibition on owning pigs in Baileyton would be lifted, and the ordinance would also remove the prohibition of livestock within 1,000 feet of a public road or residence.
One line in the ordinance also prohibits the abuse of any “dumb animal or fowl,” which would see the “dumb” qualifier in the regulation removed. Therefore, the regulation would prohibit abuse of any animal.
The ordinance would also increase fines to $50 each day an offense continues involving aggressive dogs or dogs running at large.
The new ordinance would also remove a section of the old ordinance that names specific dog breeds as “vicious dogs.”
