Farragut approves first-reading budget amendment and records year-end transfers

The Farragut Board on May 22 approved Ordinance 25-08 on first reading to amend the fiscal year 2024–25 general fund, capital investment program (CIP) and tourism fund budgets and received a report on multiple year-end intra-department budget transfers.

Staff said the general fund expenditures will increase by $144,050, including $10,000 for public works vehicle maintenance, $35,000 for nondepartmental legal services and $97,000 recorded as pass-through mixed-drink tax revenue to be paid to Knox County. The CIP increases by $254,000 — including $35,000 for Virtue Road and transfers of Union Road ($53,000) and pedestrian warning signals ($166,000) from the prior fiscal year. The tourism fund will increase by $13,000 for a wayfinding sign project budgeted in FY24 but expended in FY25.

Separately, town staff presented a set of year-end intra-department transfers: IT moved $12,000 from phone system equipment to dues/subscriptions for new agenda management software; public works moved drainage-project funds to clothing/uniforms for PPE; insurance fund transfers addressed OPEB health insurance and retirement benefits; and finance moved $4,250 from credit-card fees to auditing services and dues for the single-audit required by ARPA funding. Other smaller transfers were recorded for first-aid supplies, website maintenance, training programs and meeting security services.

Alderman White asked whether the increased legal-fee line anticipated additional future legal problems; staff said the increase covers fees already accumulated and anticipated near-term expenses. There were no resident comments on the amendment. The board approved Ordinance 25-08 on first reading by a 3–0 roll-call vote at approximately 6:08 p.m.

Staff did not indicate any additional board action beyond the first-reading approval and reporting of transfers; final adoption will occur on a subsequent agenda.