Town value up almost $1 billion in nine years
The recent Certified Accounting Report shows the Town of Farragut’s total value increased from $2.8 billion in 2010 to $3.7 billion in 2019. This 32 percent increase in total value over a nine-year period is a result of previous and the current Boards’ of Mayor and Aldermen (BOMA) determination for the Town to live within it means.
Like many Farragut families, town leaders plan purchases and capital expenditures at times when they can be paid in full with available cash rather than taking on debt to pay for them.
Further, unlike Maryville, Oak Ridge and the vast majority of Tennessee municipalities, the TOF does not collect a city property tax from residents. Therefore, TOF available cash (generated from sales taxes) becomes available at a slower pace than most Tennessee municipalities.
Despite cash constraints and a legacy of “living debt-free,” Farragut residents enjoy beautiful parks and greenways, well-maintained streets and popular amenities because of our rigorous, annual budget process.
The TOF fiscal year begins every July 1, and the budget process starts every February with a BOMA strategic planning session in which operating expenses and capital expenditure (i.e. cash outflows) priorities are set.
Between February and final budget approval in June, BOMA conducts multiple workshops in which town staff project cash inflows (i.e. collected sales taxes) and outflows based on strategic priorities. During the workshops, BOMA members adjust the timing and priorities of cash outflows to incorporate resident input while maintaining significant cash reserves.