The Greeneville Board of Mayor and Aldermen approved the 2022-23 fiscal year budget on first reading during its meeting on Tuesday, but did not approve the 6-cent property tax increase that was initially included in the budget.
The original budget as presented to the board by City Administrator Todd Smith included the tax increase to help fund the new HVAC system at Greeneville Middle School. The project will add $234,000 of yearly debt service for the next 16 years.
Mayor WT Daniels and the board expressed concern over the property tax increase, feeling as though it was unfair to the citizens.
The board approved the budget without the property tax increase. Smith said the budget will be re-examined to shift funds and find potential cuts. The board will discuss those changes before the budget is approved on second and final reading.
Smith told the board he is concerned about the town’s fund balance. Typically, the town has a fund balance of 25 to 35 percent of its operating budget. Smith said that projections indicated the fund balance next year would be at 27 percent of the town’s operating budget.
As passed Tuesday, the budget does include a three percent cost-of-living increase for town employees, as well as a 2.5 percent step increase.
In other items, the board approved the Greeneville City Schools budget. The City School Board approved the budget last month and the Greeneville Board of Mayor and Aldermen had to approve it as a formality.
The board also approved the purchase of two Ford Explorer Interceptors for the Greeneville Police Department. The department recently sold a vehicle for $54,000. Those funds, along with $14,000 from police seizure funds, will be used to make the purchases. In-car video cameras for the police department were approved as well. The cameras will be funded by a $10,600 grant from the Tennessee Highway Safety Office.
The board also approved a special event request to close portions of Davis Street for the Community Street Dance on August 6. The yearly event is held on the Saturday closest to August 8. A special event request was also approved to close portions of Church Street for the Rural Resources Incredible Farm Dinner Downtown on July 23. The event was originally planned for Main Street.
Meeting as the Beer Board, a permit for on-premise consumption at The Salsas Restaurant on Asheville Highway was approved.
