On hand for the meeting was Lenoir City Mayor Tony Aikens, Lenoir City Director of Schools, Jennie Barker, her finance director, Lenoir City School Board Chairman, Matthew Coleman, and Lenoir City Administrator, Amber Scott. This same group also attended the budget committee meeting earlier in the day. Ms. Barker gave a linty of reasons that she felt commission should take funding from the Loudon County schools and give it to the Lenoir City schools.  During the budget meeting, we learned a number of things we didn't know and had things confirmed we did know.

What we learned:

Lenoir City schools closed out the 2020 school year with $10,995,827.00 in their fund balance. We also learned that they had moved $3,000,000.00 into their capitol projects fund to cover a number of projects they plan to complete in the new school year. One of those projects is to install artificial turf on the football field and the baseball field at the projected cost of  $877,000.00.

We also learned that the county schools did in fact lose $400,000.00 to the city schools. In the past I reported this but used the wrong acronym. Instead of the BEP, it was the WFTEADA. My mistake. No idea what that stands for other than county schools lost $400,000.00.

Lenoir City does not contribute any of their local funding with Loudon County schools. 

For fifteen years, Lenoir City schools have possibly been in violation of state law by incorrectly depositing the ASFT donated to them by the county. Under the law, ASFT funds can only be used for capitol projects of education debt. Since 2007, they have just been depositing the ASFT funds in their general fund. Ms. Barker said they would make that correction.

67-4-2911. Remittance of taxes collected.
The taxes collected pursuant to this part shall be remitted by the collector to the county or metropolitan government trustee, who shall place the tax proceeds in the fund or funds designated by the governing body, but the tax proceeds shall be used exclusively for the purpose of funding capital expenditures for education, including the retirement of bonded indebtedness, the need for which is reasonably related to population growth.

Lenoir City government is still in violation of state law by withholding documents from the county trustee's office for collection of the ASFT.

67-4-2910 Collection Of Tax

(a) Any tax levied pursuant to this part shall be collected in the following manner:

(1) At the time of application for a building permit for residential development, the municipal or county official issuing the permit shall compute the estimated tax liability for the county school facilities privilege tax, based upon the proposed square footage of the facility to be built and the current rate of the county's school facilities privilege tax. As a condition of receiving the permit, the applicant shall sign a form indicating that the applicant recognizes the liability for the tax. The official shall keep one (1) copy of the form for the official's records and shall provide a copy to the applicant.

If the permit is issued by a municipal building official, the official shall also forward a copy of the form within thirty (30) days of the issuance of the building permit to the county official or employee who has been designated by the county legislative body to collect the tax.

Even though Lenoir City mayor/council just raised property taxes by 14 cents in the city, the schools did not receive any additional funding from the property tax hike.

Maybe the biggest thing I learned personally was, apparently all the city officials who spoke are avid readers of vanshaver.com. They made a number of references to my articles.

Monday's meeting was just a workshop, no vote was taken on the ASFT. The voting meeting will be August 2nd. The question of the ASFT will be on the agenda. Commissioners will have the opportunity at that time to offer motions, if they want, to take ASFT funding away from the county schools and give it to the city schools, or leave the funding with the county schools or any other option.

Speaking just for myself, as long as Mayor Aikens continues to hold the county hostage by withholding the legally required documents for collecting the ASFT, there's no room for any negotiations and it's been my experience that county commissioners do
not respond well to intimidation tactics. 

We'll see what happens on August 2nd.