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The Hamblen County Commission voted to approve its 2023-2024 budget and discussed options to avoid a potential wheel tax increase.

The 23-24 Budget which was approved Thursday in the special called meeting does not include a wheel tax increase.

However, the commission is expected to consider a dedicated wheel tax increase to address paving needs in the coming weeks.

Commissioner Peggy Howell tried to preempt that looming discussion by suggesting a plan to move monies designated for the school system and moving them to the highway capital fund.

“On the Mayor’s worksheet we find that we have met the maintenance of effort in 2021, 2022 and we will meet in 2023 with money left over,” Howell said. “We have more than met it with $3,000 coming back so I’m going to follow the Mayor’s lead where he just moved 12 cents from general funds schools to the county general fund.”

“We have a projected $20 million in sales tax and I believe we may exceed that, and if we increase the sales tax bucket; they’re projecting $20 million. What if we changed it to $19,915,000. Reduce the property tax bucket and the net effect is zero. “

The commission has projected approximately $20 million in sales tax revenue and Howell proposed moving money away from property tax revenue and use some of the sales tax revenue to replace those funds.

“Our taxes get paid and we can give the highway capital fund dollars and have no wheel tax and I call that a win-win.”

Howell explained the extra money would eliminate the need for an increase of the wheel tax.

“The mayor explained that in 2021 we met the maintenance of effort for the school system and there was around 3 million extra dollars going to the schools that was used for broken doors and glitches that happened in school,” she said. This money is already there and we would just move the money without having to tax the citizens.

“The other thing that makes this option attractive is that the highway department would get this money sooner. We can put off the vote for the wheel tax and it would take longer for them to get that money.

“The mayor asked what we would do next year and we have to get through this year,” she said. “I’m really just looking for a deferral on the Wheel Tax. I’m asking for a switch out to put off taxing citizens.”

County Mayor Bill Brittain explained how much money would be moved and how it would be replaced.

“From my calculations that would be $2.2 million that would move from property tax and you would need sales tax to replace that, which would bring down the sales tax to $19.8 million. The maintenance of effort would be the same at $27,356,000,” he said.

Howell made a motion to amend the tax levy to move 14 cents from the general purpose school fund to the highway capital fund for one year.

During discussion Commissioner Debbie A’hearn asked if a crisis occurred within the school district, would it be possible to move the money back to the school’s general fund.

“It sounds wonderful, but what if?” she asked. “In my home I have a budget and sometimes I borrow from it to pay something off. A crisis may come up and I can’t get that money back from the budget. My question is what happens if we don’t have that money and we have a crisis?”

Traci Antrican, Hamblen County School’s business supervisor, explained how the school would replace that money.

“If at the end of the year you don’t collect all of the revenue you budgeted in the local revenue budget the school district is required to set aside an amount equal to the shortfall out of its undesignated fund balance,” Antrican said. “That money has to stay in that reserve and can only be used for one time expenditures.”

“You said its undesignated money so that means you have a sock drawer that is undesignated so if something happens you can use that money,” Howell said. Antrican agreed.

Hamblen County Schools Superintendent Arnie Bunch further explained the usage of the funds.

“We plan that money for our capital projects,” he said. “Our facility’s average age is 56 years old and that money gets laid into addressing facility needs or other needs in the district.”

Commissioner Mike Richardson questioned if the school district would be panicked if the commission chose to pursue the proposed plan.

“We would be concerned if this happened more than once because our fund balance would be depleted over time, having to make up for the missing funds,” Antrican said.

Commissioner Thomas Doty questioned if an emergency arises and the school district no longer has this money would it rely on the commission to fund the emergency.

“This money gave us the ability to handle those things,” Bunch said. “When I came into this position I offered to meet with all commissioners and there was a clear message I received, ‘don’t come for more money because we don’t have it.’”

“What this money has allowed us to do is if something arises we can handle it without having to come to the commission to request more funds.”

Commission Chairman Chris Cutshaw asked Brittain the advantages and disadvantages on removing the funds.

“The biggest thing is what we will do next year,” Brittain said. “In this year’s budget there is funding for 41 new correction officers for the new jail, not for a full year, but next year we will have to fund them for a full year.”

“One option is what we have done for the past couple of years, with the growing sales tax, is move property tax from the school general purpose fund to the county’s general fund. If we moved the 14 cents it would drain any of that option and that would be the biggest thing to consider.

“Publicly what I’ve heard is that the perception of the Wheel Tax going to paving is a positive thing and if you increase it and it’s for paving and you make a public statement and make an agreement that the money is going for that I think that all is a plus,” Brittain said.

After discussion the commission voted not to amend the tax levy to move 14 cents from the general purpose school fund to the highway capital fund, with commissioners Wayne Nesmith, Edna Greene and Howell voting in favor of the amendment.

Howell, still dedicated to not pursuing an increase in the wheel tax, made a motion to move 7 cents from the general purpose school fund to the highway capital fund. The commission against the motion with the three commissioners again voting for it.

The commission voted to approve the proposed resolution to fix the tax levy as well as making appropriations for various funds and nonprofits.