Finance director outlines FY25 year-end, transfers and proposed amendments; $2.4M to return to general fund

Loudon County finance staff presented a year-end financial summary and proposed budget amendments at the Aug. 18 workshop that will be included on the upcoming voting agenda.

Finance Director Erin Cameron (presenting) said the county27s general fund balance decreased by $704,794 from the FY24 audit to the FY25 year end. She noted an earlier transfer of $2.8 million out of the general fund for cash-flow purposes on a set of projects; the current-year amendments discussed at the workshop include returning about $2,436,141 to the county general fund, which would have shown as an approximate $1.7 million increase if the timing had matched the prior fiscal year.

Cameron walked the commission through several specific items the budget committee had reviewed: a $15,000 Tennessee Corrections Institute (PCI) grant for the sheriff27s office (no match required), a recommended ARPA third and final payment to Lenoir City toward a public safety building in the amount of $355,681.50, and various grant-budget adjustments to align budgets with actual awards. Commissioners questioned the documentation for the ARPA payment; one commissioner said the committee relied on a spreadsheet provided by the recipient and asked how staff determined the project was "66% complete." Cameron said the percent complete matched the estimated project amount used in the previously approved resolution.

Other amendments explained at the workshop include reimbursements related to the courthouse project (including $20,000 for document restoration after an insurance payment was received) and recognizing contracts already signed for school bond projects. Cameron said the school bond contracts total a little more than $93 million; the amendment accounting treatment meant recognizing a prior-year encumbrance in the current budget year and that, in net, the education capital projects amendment would increase the fund balance by $92,559,875 (an accounting presentation related to the bond encumbrances).

The finance presentation also noted a small state-paid certification supplement for the county assessor27s state certification: a prorated $213 payment for the current year with a potential annual state supplement of about $1,000 if the assessor maintains certification.

Cameron told commissioners the amendments, if approved at the formal meeting, will increase the county general fund balance by about $2,436,141, decrease the school general fund balance by approximately $72,300 and increase the education capital projects fund to reflect bond contract encumbrances.

Workshop discussion included questions about verification for percent-complete claims tied to ARPA disbursements and requests that commissioners be able to inspect project sites if they wished to confirm progress. No formal votes on the amendments were taken at the workshop; Cameron said the amendments will be part of the county commission27s formal agenda for consideration.