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Smith County officials warn of budget shortfall; board schedules budget public hearings for May
Summary
County staff reported a projected FY27 shortfall driven by rising costs and exhausted one‑time federal pandemic funds; the board approved multiple fourth‑quarter appropriations and rescheduled public hearings on proposed real‑estate tax and utility rate increases to May to allow presentation of draft budgets.
Smith County officials told the Board of Supervisors on April 9 that the county faces a multi‑million dollar shortfall for fiscal year 2027 and will likely need revenue increases or service cuts unless new revenues are found.
Financial staff presented the March 31 financial snapshot showing roughly $17.99 million in bank and CD balances and approximately $21.27 million in total funds. The treasurer and staff explained how state reporting of certain payments (referred to in the packet as the PPT program) produces large “on books” uncollected figures, and when that timing is excluded county past‑due taxes were roughly $4.7 million for the first five years of collections, with additional long‑term past‑due real estate balances.
Budget committee members told supervisors they had narrowed a projected FY27 deficit but still faced roughly $2.5 million in unresolved funding needs once one‑time federal (COVID/ARPA) funds are exhausted. The committee recommended and the board approved several fourth‑quarter appropriations during the meeting, including county, school and Department of Social Services requests, with one committee abstention on a school appropriation noted in committee. The board later scheduled a special meeting dedicated to budget public hearings and moved the hearings to May 21 to allow staff and the school division time to present draft budgets after the General Assembly completes its action.
The committee and supervisors discussed potential revenue options — modest real‑estate tax increases, water and sewer rate adjustments, and solid‑waste tipping fee changes — and emphasized the impact of statewide funding formulas on local school obligations. Officials noted that increases in fuel and other operating costs are substantially raising monthly expenditures for law enforcement, emergency medical services, schools and solid waste operations.
On delinquent account collection, the board agreed to partner with the county treasurer to publish lists of delinquent real‑estate accounts in the local paper as a notification step; staff said publication frequently helps identify clerical/address issues rather than intentional nonpayment and gives residents an opportunity to resolve arrears.
What’s next: the board set a special meeting for May 21 to receive budget presentations and hold public hearings on potential tax and rate changes. Staff will meet individually with supervisors to review budget options before the public meeting.
