Hamblen County Commission approves multiple FY25–26 fund budgets, schedules public hearing to consider exceeding certified tax rate

Hamblen County commissioners approved multiple fiscal-year 2025–26 fund budgets on a series of roll-call votes Monday night and set a public hearing for the county commission meeting next Thursday to consider exceeding the certified property tax rate.

County finance staff told the commission the county faces a structural budget gap driven largely by recurring personnel and insurance costs. "You can do it one time... it's a business model that will not sustain," Amanda, a county staff member, said while explaining the limits of using one-time revenue to cover recurring expenses.

The commission majority approved the general fund, sanitation fund, highway fund, highway capital projects fund and several debt-related funds during the session. The body also passed Resolution 25-14, conveying a one-time $600,000 allocation to the school system that commissioners said is being recorded in the schools' technology account to comply with restrictions on one-time funding.

Why it matters: County staff described large recurring increases since 2021 — salary increases and added positions, higher insurance and tipping fees — that have pushed expenses well beyond revenue growth. Commissioners were told the county has realized about $6.3 million in additional revenue since 2021 while expenses have increased by roughly $10.5 million in the same period. The staff estimate for the shortfall presented in the meeting was about $5.5 million.

Details of the fiscal pressures cited by staff include a $1.3 million subsidy to the self-insurance fund, a minimum $300,000 rise in tipping fees, a 13% increase in insurance costs this year, and multiple personnel increases: corrections and sheriff-related raises and additional positions, courtroom security and new probation services positions. Staff also listed specific program amounts: probation services $326,000; courtroom security (four positions) $683,000; sheriff’s salaries and benefits including school resource officers about $2.6 million; jail salaries and benefits tied to 49 positions since 2021 about $4.4 million; and circuit court increases including additional judicial staff totaling several hundred thousand dollars.

On property taxes and potential rate increases, staff explained limitations on what the county can and cannot reassign from existing tax lines. "We set a set amount that we give the school system — maintenance of effort — we don't say they get x pennies of property tax to fund their budget. We said they get x dollar amount," a commissioner explained during the meeting. Staff estimated a penny of the tax rate could be worth about $162,000 under current assessments and suggested a penny might be worth as much as $274,000 depending on certified values. Commissioners were given an illustrative example: on a $300,000 home, the projected increase under the potential rate change could be about $150–$200 a year (roughly $12 a month), with the caveat that the numbers presented were estimates and subject to the certified assessment figures.

The commission also scheduled a public hearing, to be held during the commission meeting next Thursday at the courthouse, with two parts: (1) consideration of exceeding the certified tax rate, and (2) the fiscal-year budget hearing. The hearing will be the formal public opportunity for residents to comment on the proposed tax-rate action and the budget before final adoption.

Votes at a glance (motions and outcomes as presented at the meeting): - Motion: Approve General Fund budget (FY25–26) as presented, including anticipated property tax revenue adjustments. Outcome: Motion carries; tally reported as 12 yes, 0 no, 1 abstain (motion carries). (Agenda reference: A1) - Motion: Approve Sanitation Fund (Fund 116) FY25–26 budget including addition of $200,000 in anticipated property tax revenue. Outcome: Motion carries; tally reported as 12 yes, 0 no, 2 abstain. - Motion: Approve Highway Funding (Fund 131) FY25–26 budget as presented. Outcome: Motion carries; tally reported as 12 yes, 0 no, 2 abstain. - Motion: Approve Highway Capital Projects Fund (Fund 176) FY25–26 budget including transfer of $1,700,000 from the general fund. Outcome: Motion carries; tally reported as 12 yes, 0 no, 2 abstain. - Motion: Approve General Debt Fund (Fund 151) as presented (no changes). Outcome: Motion carries; tally reported as 13 yes, 0 no, 1 abstain. - Motion: Approve Special Debt Service Fund (Fund 154) as presented (landfill/bond-related). Outcome: Motion carries; tally reported as 13 yes, 0 no, 0 abstain. - Motion: Approve Fund 122 (enforcement/asset fund as described in packet). Outcome: Motion carries; tally reported as 13 yes, 0 no, 1 abstain. - Motion: Adopt Resolution 25-14 conveying a one-time $600,000 allocation to the Hamblen County school system, recorded to the schools' technology account to comply with nonrecurring-fund restrictions. Outcome: Motion carries; tally reported as 13 yes, 0 no, 1 abstain.

Discussion and clarifications: Commissioners asked for and received clarifications on how the one-time school allocation would be recorded and why the schools cannot use one-time funds for recurring salary costs. Amanda, the county staff member, explained the accounting approach: the county gives a one-time gift recorded as technology funding; the school system may reallocate internally to cover recurring costs but not in a way that violates the rule against using nonrecurring county funds for recurring obligations. The staff also identified a roughly $1 million figure already included in the property-tax revenue line as estimated new-growth revenue for the upcoming year and noted some opioid-abatement proceeds (about $150,000) were included in other revenue estimates.

Background and next steps: County staff said the commission has shifted portions of property-tax pennies among funds over recent years — moving tax penny allocations between school and general funds and debt service — and that those options are largely exhausted. Commissioners and staff said the public hearing next Thursday will include formal comment on the tax-rate action and final budget adoption. The meeting packet and staff estimations will be used to refine the certified numbers when county assessments are finalized.

Ending: The Hamblen County Commission's public hearing and formal budget adoption are scheduled for next Thursday at 5:00 p.m. at the courthouse; staff cautioned that specific tax-rate calculations are estimates until the state-certified rates and assessment rolls are finalized.