Lenoir City approves upcoming bu

Lenoir City Council has unanimously approved its budget for the 2023-2024 fiscal year.

A public hearing was held 5:45 p.m. prior to the June 26 meeting for comments about the budget. No one spoke.

The property tax rate, which is $0.9955 for every $100 worth of assessed value of property, remains unchanged. Garbage collection fees were changed from $11.50 to $15 per month beginning July 1.

The 2023-2024 budget for Lenoir City Schools was also approved unanimously.

Council also unanimously approved the creation of a three-person charter review committee with members Cole Sitzlar and Cory Newman and Jeremiah Wampler as chairman. Councilwoman Jennifer Wampler abstained from the vote.

City Administrator Amber Scott Kelso said she wasn’t certain Newman would be able to devote the time to the group. Mayor Tony Aikens asked council to approve all three, indicating a replacement for Newman could be decided later if needed.

The committee is tasked with reviewing the city charter and recommending proposed changes to council, which could then refer those to Lenoir City voters. One of the main changes discussed for several months is an increase in the city’s sales tax rate from 2% to 2.75%.

Aikens said he has met with Jeanne Barker, director of Lenoir City Schools, and Lenoir City Board of Education Chairman Mitch Ledbetter about possible additional funding for city schools.

“We hope that the charter committee will look at that and come back to city council for a recommendation to add maybe something to the ballot in the future, or possibility even have a special election, but that’s something they’ll discuss, be discussing when they meet,” Aikens said.

In an unrelated matter, council approved Aikens’ appointment of Monty Ross to serve as Lenoir City representative on the Loudon County Solid Waste Disposal Commission. The appointment is retroactive to June 8.

Aikens said he discussed the matter with City Attorney Walter Johnson, who indicated Aikens had the authority to make the appointment. Aikens said he still wanted council to vote.

Allison Sousa, director of The Venue at Lenoir City, then provided an update on operations of the event center.

Sousa reminded council that operating revenue from The Venue was never intended to be enough to cover debt service on the building.

From January 2020 to May, the facility’s largest clients were nonprofits, government and educational organizations at 48.2%, followed by corporate clients at 27.3%. Private events made up 22.2% of the facility’s schedule and had the highest profit margin.

Sousa said more than 65% of current business is coming from repeat customers and referrals. About 60% of clients come from outside Loudon County.

“We are bringing money from Knoxville,” she said. “We’re bringing money from Oak Ridge. We’re bringing money from Nashville into our community — not just being spent at The Venue, but in our restaurants and at our gas stations and with our retail establishments. We’re actually a draw. Really, you could tie it into a tourism draw.”

The Venue earned $510,007 in revenue for the 2021-2022 fiscal year and $608,000 so far in 2022-2023. She anticipates to finish the year over $700,000.

In the past two years, revenues have covered 92% of operating expenses, Sousa said.

Sousa said based on estimates, research and studies that every dollar spent at The Venue equals about $8 spent in the community. She said that means the facility had a $4.8 million economic impact in one year.

In other agenda items, council approved:

• The purchasing committee’s recommendation for health insurance renewals.

• A request of Lenoir City Elementary and Lenoir City Intermediate/Middle schools to use the War Memorial Building as an emergency relocation site.

• The declaration of 15 Lenoir City Police Department items surplus property and made arrangements for disposal.

• Garrett Butler to fill a vacancy at LCPD. Butler has not gone through the police academy and a discussion on grant funding for law enforcement tuition was held.

• Permanent, full-time employment for Weston Ivey in the Lenoir City Fire Department.

• The purchasing committee’s recommendation to request bids for 25 window replacements at the Lenoir City Municipal Building.

The council meeting scheduled for Monday has been canceled. The next council meeting will be at 6 p.m. July 24.