Bradley County commissioners and staff spent the meeting reviewing the proposed fiscal-year budget and strategies for finishing unspent American Rescue Plan (ARP) projects, maintaining required fund balances and managing debt service.

Mayor (name not specified) said the meeting marked an end to heavy ARP budgeting: "this is pretty much the last year we're gonna budget anything with ARP," and staff and commissioners discussed which remaining ARP commitments could be completed, delayed or transitioned to the general fund.

Why it matters: The ARP allocations and the county's fund-balance policy affect whether the county will need to borrow sooner or can continue to pay for school and capital projects in cash. Officials said interest earned on ARP balances is cushioning spending for now, but many front-page ARP projects are already committed and will require reimbursements soon.

Most ARP buckets are now drawn down, staff said, with broadband funding the principal remaining front-page balance because projects are finished but reimbursement requests have not yet been submitted. Commissioners and finance staff told the body they expect interest earnings to produce about $300,000 over the next year but cautioned that the figure is an estimate and will accrue over the full fiscal year rather than arriving in a lump sum.

County finance staff described how some departments have purchase orders (POs) that are committed but not yet invoiced; those POs will draw down ARP or interest buckets when vendors request payment. Examples discussed included sheriff's vehicles, EMS equipment (a remaining laptop purchase of about $2,000) and a nursing-home van that has not yet been purchased. The commission's finance team suggested finishing projects in the current budget year where feasible and using amendments later this summer to move smaller technology or capital purchases from fund balance if appropriate.

Commissioners reviewed other funds and policies during the session. The county's policy requires a 5% reserve; school system officials and some commissioners prefer a higher target (often discussed at 7%). Finance staff and the schools'representative explained that a 7% reserve for the school operation fund still represents less than one month's operating expenditures and that the state's recommended two-month reserve standard would be substantially larger than the county has historically held.

Debt-service discussion focused on the county's strategy of level financing and paying principal down annually. Staff noted the proposed budget reduces outstanding debt by roughly $9.7 million in the coming year. Several commissioners and staff discussed variable-rate debt and a trustee's advice to hold a larger fund balance to insulate against rate spikes; the county's current internal practice reflects that caution and a 15-month coverage guideline used in prior advice from its financial advisors.

Staff also outlined how certain smaller revenue streams and grants are treated in the budget. The meeting recorded staff's explanation that the tire-haul program is a flow-through grant (expenditures are shown with matching revenue) and that landfill/gift contributions are split among several funds (examples discussed included allocations for the landfill, fire department and other county projects).

The commission and staff agreed to include the remaining ARP interest and committed amounts in the adopted budget while monitoring reimbursements and vendor invoices. Staff recommended that, for small technology purchases such as desk/laptop replacements, the commission adopt amendments after the budget is approved (July/August) to move money from fund balance rather than reclassify ARP lines in the approved budget.

Looking ahead, commissioners asked staff to provide updated PO reconciliations and payoff figures for specific debt lines with upcoming November or December payments so the commission can decide whether to accelerate payoffs without jeopardizing cash flow.

No formal action was recorded on these budget topics during this segment; commissioners directed staff to continue reconciling open POs and to prepare amendments as needed.