Lenoir City mulls budget

According to councilman, Jim Shields, the property tax rate is going to stay the same (.99). Mayor Tony Aikens also said, as it stands property tax rate is 99 cents per $100 value.

While the mayor is correct, that they don't have the official, new certified tax rate yet, the mayor well knows that the new certified tax rate is going down, possible as much as ten cents. If the council adopts a property tax rate higher than the new certified tax rate, that's a property tax increase and any anybody says different, they're wrong.

At least they will have to have a public hearing if they plan to raise property taxes, "exceed the certified tax rate" so residents will at least have a chance to voice their opinions.

Got to keep your eye on these folks, they've snuck property tax increases in like this before. No reason to think they won't try to do it again.

Lenoir City Council took the first step May 24 toward approving a 2021-22 fiscal year budget.

Total revenue is projected at $12.7 million. The proposed ending fund balance for General Fund is about $4 million.

Councilmen James Brandon and Jim Shields motioned and seconded, respectively, to approve the budget on first reading, which passed 4-0 in favor. Councilmen Eddie Simpson and Mike Henline were absent.

“We always want to feel a bit challenged with our budget because we want to make sure that it’s as conservative as possible while maintaining the services that we provide to the citizens,” Amber Scott, Lenoir City administrator, said. “I would say that this is a similar budgetary process to many other years that I’ve experienced.”

Shields considered the budget “pretty good.”

“The budget committee worked and they got to come up with some more police officers for the police department,” Shields said. “… Things are looking good getting the budget balanced moving forward into 2022. We’re not going to change the tax rate, it’s going to stay where it’s been. Some years back, I think, (several) years they dropped it back, it was below the certified rate.”

The tax rate of $0.9955 could also stay the same after council unanimously approved first reading. Councilwoman Jennifer Wampler and Brandon motioned and seconded, respectively.

“Right now as it stands property tax rate is 99 cents per $100 value, the same as it’s been the last several years,” Tony Aikens, Lenoir City mayor, said. “We still don’t have the official numbers back from the state yet.”

Hopes are to have a certified rate around mid-June, Maggie Hunt, Lenoir City budget director, said.

Brandon and Wampler also motioned and seconded, respectively, to increase refuse collection fees by 25 cents beginning July 1, taking the monthly sanitation pickup fee to $10.75. That vote passed 4-0.

Scott said an additional 25 cents will also be added in 2022.

“From time to time we just have a look at that,” Scott said. “We try to keep it as low as possible. I would say other cities that charge a sanitation fee, ours is probably still the lowest for that.”

The increase is due to higher costs associated with sanitation pickup. This makes for Lenoir City’s first increase in collection fees since 2010, she said.

A second and final reading for everything will occur 10 a.m. June 21 at Lenoir City Municipal Building.

In other news, Lenoir City Council:

• Passed on first reading the Lenoir City Board of Education budget with the understanding a final draft will be ready by June 21.

• Closed Depot Street from Bank Street to the corner of South A Street 3-8 p.m. July 31.

• Approved the July 1, 2020-June 30, 2021, contract with Brown Jake & McDaniel PC to audit accounts for Lenoir City.

• Approved the July 1, 2020-June 30, 2021, contract to audit the retirement income plan for Lenoir City employees.