Tazewell supervisors adopt FY24 budget, sequester $5.84 million of school capital funds

The Tazewell County Board of Supervisors voted June 27 to adopt the county's fiscal-year 2024 budget after staff presented amendments and recommended changes, and the board moved to sequester $5,841,000 from the school system's capital improvements category into a school facilities fund administered by the board.

County administrator/designee Mr. Young presented the final budget figures and the proposed amendments, telling the board the county's bank balance had recently fluctuated but was roughly $7.6 million at a snapshot taken late in the month. He said the advertised budget assumed a $4 million ending balance; the school board's actions since the preliminary April submission meant the county had more cash on hand than expected, which let staff recommend additional appropriations and a higher contingency.

"They told us two months ago they'd finish with $11.5 million," Mr. Young said of the school system, "and after they filed reimbursements they are now telling us they're going to finish with about $20,250,000." He told the board some of that carryover is "wired" for specific purposes and some is encumbered under contract; he recommended the supervisors sequester unencumbered and high-value uncommitted school capital projects so the board could exercise closer oversight if those projects were to move forward.

The board debated Mr. Young's recommendation at length. Supporters said the move would preserve county oversight and protect taxpayers against unanticipated contract overrun requests. Opponents argued the school system needed flexibility to complete capital work and noted the county could choose to return funds later. After discussion the board voted to remove $5,841,000 from the school board's capital improvements line and transfer that amount into a school facilities fund under the Board of Supervisors' control. The motion carried.

The adopted budget also included staff-recommended amendments: a restoration and increase of the contingency fund toward typical funding levels, $350,000 added for fire apparatus and gear, $200,000 set aside for health-department HVAC replacement, continued ARPA project carryovers for specified items, and a $1,000,000 contribution to personal property tax relief through the state program (PPTRA) instead of a broad ratio cut, as discussed during the meeting.

Mr. Young cautioned the supervisors that some of the school system's reported carryover is already obligated to contracts and grants and therefore cannot be freely reallocated without potential contract penalties. He recommended sequestering only larger unencumbered projects (he flagged a $200,000 threshold) and directing the school system to request draws from the sequestered fund by project after bids and firm prices are known.

Action and next steps: the board approved the budget ordinance as advertised with the amendments and voted to appropriate the budget (motions, seconds, and votes recorded). The resolution to create the school facilities fund and move $5,841,000 into it was passed; the fund is now under the board's control and will require the school system to seek draws for specific projects. The board also approved the county appropriation that authorizes execution of the amended spending plan.

Why it matters: The board's action changes oversight and immediate access to a large portion of school capital funds and sets a new process for how capital projects will be funded and monitored. School officials and county supervisors indicated they expect follow-up coordination on contracts and on the timing of any draw requests.

Reported votes and motions: the record shows motions made and seconded; the board's adoption of the budget, appropriation, and the motion to transfer $5,841,000 were approved by voice vote as recorded by the chair.