FY22 estimate: general fund rev down 5.8 %; sales tax rev up 2%
After several months of workshops and preliminary discussions, Farragut’s Board of Mayor and Aldermen passed its 2021-22 Fiscal Year Budget on first reading during its regular meeting Thursday, May 27.
It was only the second live meeting for BOMA since COVID-19 restrictions were lifted in April.
Town Administrator David Smoak presented the completed proposed budget, based on input BOMA had provided, which estimates general fund revenues in 2022 to be $12,258,400 — a 5.8 percent decrease from estimated revenues for 2021. Although sales tax revenue is expected to rise at least 2 percent, the phasing out of the Hall income Tax — as high as $1 million in years past — is estimated to only bring $400,000 to the Town, and by vote of the Tennessee General Assembly, will end completely after 2022.
General fund expenditures for 2022 are proposed at $8,149,132, which Smoak said is a 14.2 percent increase over 2021. While Town departments reduced operating expenditures at the start of the 2020 pandemic, Smoak said all funding has been restored and additional investments in personnel has been added, too, including hiring additional staff and bringing employee salaries in line with other municipalities.
“The overall General Fund budget process, $4.1 million in revenues over expenditures for FY22,” read Smoak’s report. “We will also be funding our rainy-day fund at a total of $2.445 million and project an available fund balance at the end of the FY22 budget year to be $19.2 million.”
Capital Investment Program
Under the CIP, $7.213 million will fund new projects, including sidewalk and greenway extensions, additional bike/hiking trails, parking and tennis facilities at McFee Park, stormwater improvements and construction funding for Union Road improvements.
BOMA will vote on the budget on second reading during its regular bi-monthly meeting tonight, Thursday, June 10. The meeting beings at 6 p.m.
Ordinances
Also during its May 27 meeting, BOMA passed on second reading:
Ordinance 21-12, amending the Capital Investment program and the Insurance Fund for Fiscal Year 2020-21 Budget, increasing the Watt Road Pedestrian Crossing project by $30,000, which includes funding for in-pavement lighting, and adding $6,082 to the Insurance Fund;
Ordinance 21-10, amending the Farragut Municipal Code to raise current Town Court Costs from $100 to $115, incorporating the State Litigation Tax of $13.75; and
Ordinance 21-11, which removes the time and place mentioned for regular BOMA meetings, noting only they will take place on the second and fourth Thursdays of each month.
In a separate interview, Williams said meeting time and place needs to be fluid, as circumstances may change.
“If we have another executive order, for example, or if we have workshops,” he said, noting the time and place will be publicly posted well in advance of meetings.
Later in the meeting, BOMA voted to begin its regular meetings at 6 p.m. going forward, which started with this meeting.
