SURGOINSVILLE — Town leaders are hoping to avoid a property tax increase this year, but as of Monday evening there was still a $22,000 deficit on the proposed 2012-13 budget.
The budget was on the agenda for final approval Monday, but due to a clerical error proper public notice of the required public hearing that accompanies the final reading was not made.
As a result, the BMA tabled consideration of the final reading of the budget until June 19 at 7 p.m. Monday’s meeting was recessed and will reconvene at that time.
Mayor Johnny Greer said it was just as well that the clerical error occurred because the delay gives the board more time to tackle the current $22,000 deficit.
A budget workshop was scheduled for June 18 at 6 p.m.
Alderman Joe McLain said the current budget proposal has been cut to “bare bones” and he and other board members are stumped as to what else they can cut. In recent years the BMA has been overcoming minor budget deficits with the use of savings, but with the savings down to slightly more than $200,000, board members are reluctant to dip into it again.
“The state recommends that you maintain enough in retained earnings to pay the bills for one quarter,” McLain said. “Our budget is slightly more than $800,000, which means we need at least $250,000 in savings, and we’ve already dropped below that mark. I don’t want a property tax increase, but I don’t want to see our savings depleted any further either.”
Greer noted that the only places left to make cuts are in personnel. One aspect of the proposed budget that might receive a second look is a 3 percent salary increase for town employees, which will cost about $7,200 annually.
Surgoinsville’s current property tax rate is 98 cents per $100 of assessed property value.
Every penny on the town’s tax rolls generates approximately $2,700 in revenue, which means if no more budget cuts take place a tax increase of slightly more than 8 cents would be required to balance the budget.
When budget talks began the town was looking at a $60,000 deficit.
“I hate to do that, especially when we’ve gotten so close by cutting it (the deficit) down to $22,000,” Greer said. “At the same time, we can’t keep using our savings. Ideally you want to see the savings go up, not down.
“Hopefully we can come up with something at the workshop.”
Greer noted that there hasn’t been a property tax increase in Surgoinsville in the six years that he’s been mayor.
In other business Monday the BMA:
•Heard a report from Vice Mayor Merrill Graham, who is also the Riverfront Festival Committee chairman, that the next fund-raising event for the annual festival will be a “Fireman’s Ice Cream Supper” to be held at Riverfront Park on June 30 from 4-9 p.m. Graham said the event will include live music, food, games for the children and a lot of ice cream.
All proceeds from the Fireman’s Ice Cream Supper will benefit Surgoinsville’s annual Riverfront Festival, which takes place in September.
•Approved the first reading of an ordinance that authorizes all appeals of building inspector decisions to be made to Chancery Court instead of the Board of Mayor and Aldermen.
•Approved the first reading of an ordinance that regulates “driveway cuts” into town roads on all future new construction. Greer said the regulations were needed due to town roads being damaged and repaired at taxpayers expense by construction of driveways.
•Approved the first reading of an ordinance that states that porches and steps are not counted with regards to measuring setbacks from public right-of-way. Alderman Larry Dykes said this ordinance was needed for clarification in light of an ordinance approved last month that created a new “medium density residential” zone that reduced the minimum size of a residential lot receiving sewer service from 9,000 square feet to 6,500 square feet.
•Heard a report from Greer that there will be a meeting Thursday at 9:30 a.m. at City Hall with representatives from the First Tennessee Development District and engineer Gary Tysinger regarding the town’s proposed sewer system and sewer grants.