Sweetwater approves year-end budget amendment, multiple ordinances and grant application; city makes board appointments

Sweetwater’s mayor and board of commissioners on final reading approved Ordinance No. 1052, amending the budget for the year ending June 30, 2025, and unanimously passed several additional ordinances and a resolution to apply for a Tennessee tourism enhancement grant for work at the city’s historic “big house.” The board also accepted the city’s monthly distributions and completed a set of routine board appointments.

City staff presented the June distributions and the proposed budget amendment during the meeting. Sonya, city recorder, reviewed the distributions, listing vendor payments including health insurance to Cigna, payments to contractors on Main Street grant work, the Sweetwater Board of Education final appropriation, and other standard disbursements. Jessica, city staff who presented the budget amendment, said the state auditor and comptroller have signaled the city will need to adopt next year’s year-end amendment before June 30 and warned that the amendment process for future years will require larger placeholder amounts because the city must act before all actuals are finalized. "We were actually informed this year that next year when we pass this final amendment for the year end budget, we're gonna have to pass it before June 30," Jessica said.

Why it matters: The budget amendment was adopted on second and final reading and is the legal mechanism the city used to reconcile expenditures and revenue through the fiscal year. The board’s approval also clears the city to submit a tourism grant application that, if funded, would pay for architectural and construction work at the “big house.” That grant application requires the city to commit to a local match.

Key details and background

- Distributions and finance report: Sonya reported line-item payments for June including Cigna health insurance ($63,893.39), Main Street contractor payments (DS Williams Construction, $5,702.34; Main Street Studio Architects, $4,000), an appropriation to the Sweetwater Board of Education ($65,000), Sweetwater Utilities Board pass-through ARP payment ($4,500), Monroe County Election Commission ($10,745.02), retirement contributions to TCRS ($32,284.67), and other routine vendor payments. Sonya said Main Street grant work is 100% reimbursable (25% match from affected property owners, 75% from the State of Texas) and that the city has been reimbursing eligible recipients.

- Budget amendment (Ordinance No. 1052): Jessica explained the state auditor and comptroller want the city to adopt a year-end amendment before June 30 in future years, which will require the city to estimate and include larger contingency amounts so the city does not technically exceed budget lines after books are closed. She said the amendment before the board this meeting was built from actuals and audit figures for the current year. The board voted by roll call; Commissioners Lovingood, Mosher, Richardson, Jenks and Stutz recorded aye votes and the motion carried.

- Grants and revenue notes: Staff reported several grants and revenue adjustments: an extra $219,000 in property tax revenue tied to a county tax sale (plus about $17,000 in interest), larger-than-budgeted police grants (including a collaborative grant that produced about $57,000 and a larger grant noted as about $1.6 million where staff said expenditures were within 1% of budgeted amounts), a cybersecurity grant applied for by Landon Purdy, additional FEMA funding reported after the budget was drafted, and modest increases in interest and investment income. Staff noted the splits and reimbursements for mixed drink taxes must be allocated between the city and Monroe County based on students’ residence counts; the city is awaiting county ADA numbers before issuing checks.

- Tennessee tourism enhancement grant resolution: The board approved a resolution authorizing submission of a Tennessee tourism enhancement grant application that would fund architectural, mechanical and electrical drawings and potentially construction for the city’s historic “big house.” Jessica said the property currently lacks interior electrical wiring and mechanical drawings, and the grant would cover design work needed before the city can seek construction bids. The transcript includes two references to possible maximum application amounts (one speaker said the application cap is $100,000; another remark referenced $2,900,000). Staff characterized the grant as having a 10% local match; the board voted to authorize application and to commit to the required 10% match.

- Other ordinances and internal controls: The board approved (by roll call where required) Ordinances Nos. 1053 and 1054 (subject to the city attorney completing preambles) and Ordinance No. 1055 concerning rezoning from R-2 to C-3 (the transcript notes the rezoning matter was considered in a workshop and was approved on the required roll call). The board also approved an update to the city’s internal control manual discussed at a prior workshop.

- Appointments: The board appointed or reappointed members to multiple local boards: reappointment of Jennifer Waller to the Tree Board (motion carried), Paul Dacus and Nick Farrell to Parks and Recreation, Steve Hearn to the Historic Zoning Commission, Tony Wilson to the Building Codes Board of Review, and reappointments/appointments to the Heritage Museum Board (Jeff Brewster and Pidge Collette reappointed; Lou Lovingood appointed). The motions for appointments carried without recorded opposition.

Votes at a glance

- Ordinance No. 1052 (amend budget year ending June 30, 2025) — outcome: approved; mover: motion made from the floor; second: second recorded; roll-call: Commissioners Lovingood, Mosher, Richardson, Jenks, Stutz — all aye. - Internal control manual (policy update) — outcome: approved; motion and second recorded; unanimous. - Ordinance No. 1053 — outcome: approved (subject to city attorney completing preambles); roll-call unanimous. - Ordinance No. 1054 — outcome: approved (subject to city attorney completing preambles); roll-call unanimous. - Ordinance No. 1055 (rezoning R-2 to C-3) — outcome: approved by roll call. - Resolution to submit Tennessee tourism enhancement grant application (commit to 10% match) — outcome: approved; motion and second recorded; unanimous. - Multiple board appointments (Tree Board, Parks and Recreation, Historic Zoning Commission, Building Codes Board of Review, Heritage Museum Board) — each motion approved; unanimous on voice votes.

Quotes from meeting participants

"We'll actually be reimbursed a 100% on that. 25% of the match comes from the property owner ... 75% comes from the state of Texas," Sonya, city recorder, said of the Main Street grant reimbursements.

"We were actually informed this year that next year when we pass this final amendment for the year end budget, we're gonna have to pass it before June 30," Jessica, city staff, said about a forthcoming change in how the city must adopt year-end budget amendments.

Ending

City staff said they will post final audited figures in August and will issue checks tied to revenue splits (for example, mixed drink tax splits) after receiving the county’s attendance data. The board adjourned after completing the agenda.