More budget details given as BOMA readies for FY ’25

While the proposed Fiscal Year 2025 Town budget awaits final approval from Farragut Board of Mayor and Aldermen, which voted unanimously on first reading to approve the draft budget — though including a couple of amendments to its Capital Investment Program budget during its meeting Thursday, May 23 — more details are told.

“For FY ’25, current employees will be eligible for a 3 percent Cost of Living Adjustment and a 3 percent merit package for a total cost of $309,422,” said David Smoak, Town administrator. “The budget also includes higher expenses for employee health insurance that are estimated to cost an additional $27,078.”

Smoak said the Town would be adding four new positions while eliminating two current positions.

“The Public Works department will be adding two technician I positions; the Information Technology division will be adding an IT technician position,” he said.

“Administration will be restructured by eliminating the assistant to the Town Administrator position and changing the role to an assistant Town administrator with managerial oversight over operational departments,” he added. “The total cost of these new positions is $289,708.”

The State Street Aid Fund has projected revenues of $842,752 and estimated expenditures of $1,765,000; the Equipment Replacement Fund will have projected expenditures of $375,000 in FY 25 and a transfer from the general fund of $725,000.

There will be an estimated fund balance in the Equipment Replacement fund of $1,342,817; the Insurance Fund includes funding for retiree health insurance and annual leave disbursements at an employee’s retirement date, and there is a $50,000 transfer proposed in the FY25 budget from the General Fund.

The available fund balance is $239,376. Americans with Disabilities Act Capital Projects Fund does not have any major projects planned for ’25.

“Since developing the Town’s ADA Transition Plan in 2018, the Town has made improvements to Anchor Park, the restroom facilities at Town Hall and dozens of curb ramps as street resurfacing projects are completed,” Smoak said. “There are more proposed curb ramps to be replaced in FY 2025 to be brought into compliance with ADA standards, and those funds will be paid out of the State Street Aid Fund.

“There is also a planned ADA greenway project for Mayor Bob Leonard Park that is partially grant-funded with additional Town funding allocated in the Capital Investment Program Fund,” he said. There is a proposed $150,000 transfer from the General Fund to the ADA Fund in FY 25, with a projected fund balance of $704,858.

“The Tourism Fund is a special revenue fund, where the primary source of funding comes from the 3 percent occupancy tax on hotel night stays by visitors to the local Farragut hotels,” Smoak said.

“Revenues from hotel stays have remained strong due to the heavy travel volume along the I-75/I-40 corridor and the convenient shopping and entertainment in the area, with estimated revenues for FY ’25 at $550,000,” he added.

“In FY 25 the Tourism Fund is receiving American Rescue Plan Act grant funds of $47,500, which will be utilized for additional marketing for the tourism program,” he added. “Proposed expenditures for FY25 are $594,491, with an ending fund balance of $1,187,309.

Smoak said the Capital Investment Program Fund budget has $18,960,216 in projects planned to get under way in FY ’25. “These projects include sidewalk and greenway extensions; Campbell Station Inn improvements; a new pickleball facility, turf field replacement; ADA improvements at Mayor Bob Leonard Park; improvements to Union Road, Boyd Station Road and design and right-of-way acquisition for Virtue Road improvements,” he said.

“Revenues for the CIP come from Town resources in the form of a $5,000,000 transfer from the General Fund, $4,590,216 from CIP reserves, $9,270,000 from federal and/or state matching grants and $100,000 in interest earnings. Overall, the FY2025 projected fund balance is $6,846,226.”