Bluff City amends FY2025–26 budget after staff flags $58,082 water and sewer shortfall

Bluff City aldermen voted Monday to amend the town’s proposed fiscal year 2025–26 budget after staff reported a $58,082 deficit in the water and sewer fund stemming from operating and non-operating expenses.

A staff member presenting the figures told the board that operating revenues and fees could not cover projected operating expenses plus depreciation and debt service, leaving the water and sewer fund short roughly $58,082. The board approved a motion to present an amended budget and directed staff to prepare revised numbers for first and second readings; the motion to amend the budget was made by Alderman Johnson, seconded by Alderman Keith, and approved 4-0.

Key drivers cited by staff included higher-than-anticipated costs for purchased water and chemicals, depreciation, and debt-service payments. The board discussed trimming discretionary line items and moving the proposed city manager salary allocation from the water and sewer fund into the general fund (the presenter said the salary was budgeted at 35% in water/sewer; removing that allocation would reduce the shortfall). Staff noted an expected $90,000–$110,000 cost for purchased water in the coming period and that chemical costs had risen from an estimated $24,000 to actual spending closer to $40,000.

The board also reviewed one-time or recurring revenue and fee changes as potential mitigations. Topics included increasing water and sewer rates if required by the state, raising tap fees (currently $900 for water taps; board members discussed raising that to $2,000 or more), and adjusting the reconnect fee (currently $25). Board members cautioned that rate increases would be unpopular with residents but that state oversight could require a rate study or mandated increase if the town fails to resolve the shortfall.

Separately, staff reported on an unresolved charge from the city of Bristol related to a grease backup and metering pit cleaning; staff said Bristol had declined to reimburse Bluff City after cleaning the metering pit. The board directed staff to continue pursuing that matter and to supply updated documentation to the comptroller.

Board members instructed staff to prepare an amended budget for formal first and second readings at subsequent meetings and to attempt to close the fiscal gap without triggering state action; the board approved the motion to amend the FY2025–26 budget by a recorded 4-0 vote (Payne, Malone, Keith, Johnson yes).

Votes at a glance: amend FY2025–26 budget — motion by Alderman Johnson; second Alderman Keith; vote 4-0; outcome approved. The board asked staff to circulate revised budget worksheets and to schedule the readings necessary for adoption.