BUDGET DETAILS

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BUDGET DETAILS - FY2019-2020

The budget adopted for FY2019-2020 totals $ 8,464,599.00.  [Note that this is only the portion of the budget - approximately 1/3 - that Decatur Co. is responsible for funding.  The remaining monetary obligations - approximately 2/3 -  are met by contributions from the Federal and State governments.]  


This budget is $ 1 Million less than our audited expenses from 2018 .  It will be difficult to meet the demands of the county with less money, higher expenses and no reserve money to fund overages.  Below are the details:


GENERAL

The accompanying property tax rate to fund the budget will be $2.25 per $100 value of property. 


Allocations are:

County Commission pay - $49,789

Landfill - Legal costs  - $200,000

Board of Equalization pay- $807

Beer Board  pay - $1,615

Budget / Finance Committee pay - $2,153

Other Committees pay - $1,615

County Mayor's Office - $236.729

County Attorney - $40,000

Election Commission - $176,001

Register of Deeds - $115,563

Planning - $0

County Buildings - $123,935

Property Assessor's Office - $161,032

Reappraisal Program - $40,760

County Trustee Office - $162,185

County Clerk Office - $145,236

Circuit Court Clerk Office - $165,096

General Sessions Court - $123,593

Chancery Court - $116395

Juvenile Court - $40,103

Victims Assistance Programs - $18,000 

Sheriff's Department - $993,071

Jail - $740,686

Juvenile Services - $74,682

Work Release/Community Corrections - $504,446

Fire Prevention & Control - $123,500

Civil Defense - $119,928

Rescue Squad - $10,000

Emergency 911 - 419,808

Coroner/M.E. - 55,995

Local Health Center - $50,461

Ambulance Service - $1,239,088

Crippled Children's Services - $796

General Welfare Assistance - $13,000

Sanitation Education Information - $44.200

Senior Citizens Assistance - $89,399

Library - $71,368

Parks & Fair Board - $223.267

Tourism Development - $900

Chamber / Industrial Development - $35,000

Airport - $52,939

Veteran's Services  - $13,339

Other Charges (Insurances, Bonds, etc.) - $372,972

Contributions to other Agencies - $25,000

Employee Benefits - $265,700

Miscellaneous - $87,228


TOTAL BUDGET ALLOCATION - $8,464,599


Budget continued 1

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Fiscal Year

The State of Tennessee and its counties begin their fiscal year on July 1st of each year. All budgets are due June 30th; however, the State allows a grace period to accommodate counties that have problematic issues. 


Decatur County has not only missed the budget deadline, but did not even begin serious discussions of our finances for the next fiscal year until the 3rd of July. 



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Do We Really Care?

 This action – or lack of action – appears to be indicative of our attitude toward our own governance…apathy. Not only is this apathy by the government officials, but also apathy in us – the citizenship. We have developed an attitude of indifference toward our county; toward planning for our future, to growing our economy and bringing in jobs, and, even, taking responsibility to do our civic duties by participating in the governance or community affairs. We have become complacent and it has cost us industry, jobs and growth, as well as the tax base which would have been generated from such. 

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We All Have Responsibility

 As the years roll by the cost of living has continued to increase but our county government has not acted in your best interest to address the escalation on an annual basis and adjust our tax rates to accommodate the additional costs. We have not insisted that our officials take action. This is the history which brought us to our current state of affairs.  

Budget continued 2

Bankrupt

So, what is the state of our county? In a word, we are bankrupt. In the documents provided by Mayor Creasy, our general fund balance was listed at $310,000; and that was a couple of weeks ago. Payrolls must be funded with this money which will leave our county flat broke within a week or two. At this point we will no longer be able to fund our general services and, one would assume, that temporary layoffs and closures will ensue. 


THIS IS UNACCEPTABLE. This is negligence -  by us all. 


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Budget continued 3

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Concerns

This commissioner has been very concerned about our financial state for many months. I have consistently asked how much money we really have, what our true debt is, and what is the plan for the upcoming fiscal year. Neither the Mayor nor the Commission have seemed interested to discuss these issues. At the Mayor’s request, the Commission approved a loan of $975,000 last September which was to be used to replenish our general fund after it had been depleted with repeated funding of the hospital. 

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Depleting the Funds

 We all knew that this loan was due to be repaid at the end of our fiscal year on June 30 as required by Tennessee law. Repayment of the loan plus applicable interest was to be secured by the revenues generated from the property tax collections of February 2019. This meant that most of the tax revenues we collected in February, which would be the normal monies used to fund the upcoming fiscal year, were already earmarked to be used to repay this loan; leaving us without sufficient funds to operate in the new fiscal year. 

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What's The Plan?

 What we did not know – and still do not - was how we were going to fund our upcoming annual budget. 

Budget continued 4

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County Funding Options

 Being an arm of the State government, a county must comply with certain statutory rules. One of these is that a county cannot take out a loan for operating capital; it must be able to fund its operations through its appropriate tax revenues. Loans for a government entity are most often in the form of bonds. These are used to finance large capital expenditures, such as new facilities, schools, jails, courthouses, etc. The Comptroller’s office of the State must approve all major monetary actions taken by counties, such as loans or bonds, or major transfers of money from one fund type to another (i.e. highway fund to general fund, or school fund to hospital fund, etc.).  

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Nuclear Option: The Funding Bond

According to State officials, in a situation where a county would become bankrupt, the State would have to issue a funding bond, which is a temporary bailout. At this point, the county becomes a temporary “ward of the State” and all finances are managed by the State. Every penny spent must be approved by the State – the county government would no longer have the power to set or regulate financial decisions. 

Additionally, to rectify the county’s financial position, the State will assess the budgetary needs of the county and set tax rates which will fund an appropriate budget and reserve. Counties are required to keep a percentage (no less than 10%) of their total budget in a reserve account to offset emergency spending. 

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Little to No Money

Currently, our county is without sufficient funds for a budget of any amount, moreover for adequate reserves.


The state of our county is extremely perilous, and we will all feel the results of the measures to rectify it. I urge all citizens to become aware of this situation and join the Commission on Monday night to discuss our limited options. 

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