News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Pickett County could face consequences after a new budget failed to gain approval Monday.
Commissioners voted to accept a $650,000 loan through Peoples Bank to offset budget shortfalls.
UT County Government Consultant Ben Rodgers said the State Comptrollers’ Office will examine the loan and determine what happens next.
“If they don’t see a funding mechanism to repay that $650,000 – because that has to be repaid back to the bank or whoever they borrow from by the end of the fiscal year they borrow it in – they will not approve that tax anticipation note,” Rodgers said. “If that money is not approved, then the county may be in a situation where they can’t pay payroll, salaries, operational expenses until property tax revenue starts coming in which is October or November.”
The budget proposal called for a 74-cent property tax increase. Rodgers, who consulted with the county in preparing the budget, said officials only had two options in order to make ends meet.
“The two options I explained to them were either increase the revenue source, which the only complete control they have on source is property tax, or cut expenditures,” Rodgers said. “Depending on what expenditures and services they want to provide is the amount of revenue they need. From the draft I saw they were going to present from the commission, they were going to need 74 cents roughly to fund those services.”
Rodgers said the loan will help “keep the lights on” for Pickett County by paying employee wages, salaries, and other operational costs.
“Those things have to be paid. Any debt that they may owe will have to be paid,” Rodgers said. “From July 1, the start of the fiscal year, until roughly November when money really starts coming in from property tax payments. That’s why they need that tax anticipation note is to get to that point and pay those expenses.”
Several concerned citizens and even county officials brought up the idea Monday of a government shutdown or bankruptcy. Rodgers said something as extreme as bankruptcy would devastate the county.
I don’t see that as a good option for Pickett County. That could be very detrimental to their economy and what they’re trying to do for the citizens there and those that come visit,” Rodgers said. “They have a great tourist attraction with Dale Hollow Lake. I don’t see it as an option, I’ve never even had that question asked as a county government consultant when I work with these counties. Nobody has ever actually asked me that.”
Rodgers notes the county has until Aug. 31 per state law to create a budget themselves. County Executive Carey Garner declined to comment on the commission’s decision following Monday’s meeting.
