Projected Drop In Worth Of Penny Equals Tax Woes For Budget Committee

The Jefferson County Budget Committee met on Thursday, May 22, 2014 in the Historic Jefferson County Courthouse.  The Meeting was Called to Order by Committee Chairman Griffith. Absent from Roll Call was Committee Member Maples.

With a Motion from Committee Member Akard and 2nd from Committee Member Dockery, the May 19, 2014 Minutes were Approved. Tax Assessor Gass informed the Committee that preliminary numbers from the State indicate that the Tax Rate will increase to $2.25 and the worth of a penny will drop to $113,500. Gass stated that, while the numbers are still considered preliminary, she expects little to no shift in the final numbers. In the current fiscal year, the tax rate is $2.15 and the worth of a penny is $116.500.

Director of Jefferson County Finance Helton presented the Committee with the Department of Education budget, which included a total anticipated revenue for the 2014-2015 fiscal year of $49,983,729 and total expenditures for that same time of $51,752,349 leaving an anticipated deficit of $1,768,620. Helton stated that during the current fiscal year, the Commission approved the usage of $1,017,007 to balance the budget and those same expenses will be carried to the next year as a part of the budget proposal.

With a Motion from Akard and 2nd from Committee Member Blevins, the Committee Approved the 142 Federal Programs Budget and with a Motion and second from the same, they also Approved the Student Nutrition Budget.

The Committee discussed at length the projected revenues and the amount of increase in sales tax that was projected in the revenue portion of the budget. Helton stated that he had decreased the amount of sales tax generated by around $200,000 due to the projected opening of a new Wal-Mart on the west end of Morristown that could lessen sales at the Jefferson City Wal-Mart. He also did not include any sales tax generation increases in the revenues. Several Committee Members disagreed with the degree of impact that a new Wal-Mart store would impact local funds and some felt that to allow for no sales growth during the fiscal year was sort sighted.

Following a brief discussion of the hospital fund the Committee adjourned.