Elizabethton City Council meets in first of two budget workshops

Published 10:13 pm Thursday, April 29, 2021

It’s the time of the year when governing entities start to look forward as they prepare to set the budget for a new fiscal year as they do their best to set the budget line item by line item to the best of their ability to ensure that all aspects of day to day operation can be completed without any glitches.

On Thursday afternoon, the Elizabethton City Council along with City Manager Daniel Estes and Finance Director Preston Cobb settled in to begin reviewing the proposed budget for the fiscal year 2021-2022 that begins when the current fiscal year 2020-2021 ends on June 30, 2021, and the new budget goes into effect on July 1, 2021.

The two items up for review were the general fund and sanitation budget in the first meeting.

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One of the budget changes and highlights from the General Fund was a change in Sales Tax Revenue as $820,325.00 was brought on additional sales tax after a 2021 budget cut for COVID-19.

Also, an increase in State of Tennessee state sales tax from trending recovery, new revenue stream for online gambling, and an adjustment to Hall Income and Gasoline Tax to the tune of $249,806.

A decrease in revenue from State of Tennessee grants in the amount being ($1,644,857) with the majority of that caused by the TAP Grant for the Rehabilitation of the Covered Bridge, Completion of Multi-Modal and Home Grant.

Also, a decrease caused by COVID-19 resulting in a loss of ($37,500) in Interest. In miscellaneous revenues, there was a change of ($505,380) with a majority caused by litigation proceeds that were recognized in FY 2021. Proceeds are earmarked for the match for the Covered Bridge Rehabilitation TAP Grant.

In expenditures, in the Finance department in personnel, there was a change of ($47,942) caused by the retirement of certain employees being backfilled by lesser-paid in the Fleet Department. Also, a reorganized structure in the Finance Department resulted in one Customer Service Representative position being removed.

Under expenditures in Street and Highway Capital, ($1,291,251) for the Covered Bridge Rehabilitation Project that will not come in FY 2022.

Also under the expenditure class, a Planning Development Grant ($497,000) for the completion of the THDA Home Grant.

And lastly, under the General Fund in the expenditure class, a Library operational change of ($68,956) reported as a decrease caused by the Tennessee Governor’s Grant for roof replacement being in FY 2021.

Moving over to the sanitation fund, the FY 20-21 Original Budget for total revenues was $1,522,319 with an FY 2021-2022 proposed budget of $1,522,514 resulting in a difference of $195.

Under the expenditure class, the FY 20-21 Original Budget was $1,448,316 and the proposed budget for FY 21-22 is $1,522,514 resulting in a difference of $74,198 with the biggest change in expenditures in Personnel Services which had an original budget of $325,828 and an FY 21-22 proposed budget of $368, 570 – a difference of $42,742.

The total change to the Fund balance would equal out to $74,003.

Another workshop has been scheduled to wrap up the review of the City budget for FY 21-22 on Tuesday, May 4th at 4 pm also at the Elizabethton Electric System meeting room.