Benton County budget meeting highlights $2.2M revenue shortfall and shrinking fund balances

The Benton County Commission meeting on May 19, 2025, focused heavily on budget discussions, particularly regarding fund balances and revenue estimates. The meeting followed a recent budget meeting held on May 14, where officials reviewed the county's financial performance based on the Tennessee State Comptroller's audit for 2024.

During the meeting, it was reported that the general fund budget for 2024 was estimated at approximately $11.16 million, with actual expenditures slightly exceeding this estimate by just over $34,000. However, the county faced significant challenges with revenue projections, particularly in investment income, property tax, and local sales tax.

The audit revealed that while the budget estimated $400,000 in investment income, the actual figure was over $1.6 million, resulting in a positive variance of about $1.2 million. This discrepancy raised questions about the accuracy of revenue forecasting, especially since the interest rates were known to be rising during the budget planning phase.

Additionally, property tax revenues were underestimated by more than $352,000, and local options sales tax fell short by over $204,000. Overall, five major revenue streams were reported to have missed their estimates by a total of approximately $2.2 million, highlighting a significant gap in budget planning.

Commissioners expressed concern over the shrinking fund balances, which currently stand at around $15 million, with a portion designated for restricted funds. The discussions underscored the need for more accurate forecasting and better financial planning to avoid future budget shortfalls.

As the meeting concluded, officials acknowledged the importance of addressing these financial discrepancies and committed to improving the budgeting process for the upcoming fiscal year. The outcomes of these discussions will likely influence future budget strategies and tax considerations in Benton County.