Commissioner Preston flags large budget variances, questions school underfunding and fund-balance reporting

Commissioner Preston pressed the Benton County Commission on the county's revenue forecasting and how the school budget was presented, citing the county's 2024 audit and state investment returns.

Preston said the county's 2024 general-fund budget estimated revenues conservatively; "The audit shows the general fund fund balance to be $15,018,712," he said, and he argued the county's investment income estimates were far too low compared with actual receipts.

Preston said the budget office estimated $400,000 in investment income but the 2024 audit showed about $1.6 million, a gap he described as "a difference of a little better than $1,200,000." He also said property-tax receipts exceeded the budget's assumptions by roughly $352,000 and that several other revenue lines (local-option sales tax, TVA receipts, bank excise tax) were underestimated, producing in his count roughly $3.67 million more in revenue than the budgeted estimates.

Why it matters: Preston said those variances matter because the budget package discussed in April included a proposed property-tax increase. He argued that stronger-than-expected investment returns and other receipts reduce the immediate case for raising taxes and asked commission members to prioritize county interests when voting.

Supporting details and context: Preston cited the "Tennessee State Comptroller's Benton County 2024 audit" and a published government investment pool rate during the budget process. He said the county's audit shows the general fund balance includes a restricted portion he described as the hospital account. On schools, he said the board of education's adopted budget showed $22,678,829 in expenditures with an apparent $3,055,258 over-fund compared with the county's estimate, and that the combined accounting could make the school fund balance appear about $4 million smaller if current 2025 figures are left unchanged.

Commission response and limits of local authority: Commissioners did not vote on changes during Preston's remarks; his remarks were offered during the commissioner comment period and framed as questions and opinion rather than formal direction to staff. Mayor Mark Ward and others later continued routine budget votes on discrete appropriations recorded earlier on the agenda. Preston noted his numbers were drawn from the audit and state data; he did not propose a specific corrective motion during his remarks.

Ending: Preston closed by urging colleagues to set aside personal differences during budget votes and to "keep Benton County's interest first," then yielded the floor.