Signal preps budget with $3M loan in mind

Signal Mountain officials are in the process of finalizing the town's fiscal year 2014-2015 budget, which includes a $3 million loan for capital projects as well as funds for two new town employees.

"The basic budget is fairly consistent with what we've seen in the last few years," said Town Manager Boyd Veal. "The best way to sum it up would be the only funds being expended from fund balance are for those types of [large capital] projects."

The projects include constructing a new Public Works facility and a second fire station on Shackleford Ridge Road and installing a new sprinkler system at the Mountain Arts Community Center.

Preliminary numbers show total revenues at roughly $16.5 million, which is equal to expected expenditures. Those numbers are actually higher than what will likely be brought in or expended, Veal noted.

"It's hard to put a number to how much we may draw down [from the loan] in the next fiscal year," he explained.

The $3 million loan doesn't have to be drawn all at once, and town officials are unsure how much will be used in the next fiscal year, he said. Just in case town officials do decide to draw all that's available from the $3 million loan, the preliminary numbers reflect those revenues and expenditures.

Veal said the plan is to level the town's debt payments over the next few years until the outstanding loan for Signal Mountain Middle/High School is paid, as well as a smaller loan taken out previously for the town's vehicle replacement fund.

That means paying less on the school loan this year, though it should still be paid off well ahead of time, by 2017-2018, Veal said. The vehicle replacement loan should also be retired around the same time, he added.

"We have been paying well in advance on the school loan," said Veal. "What I wanted to avoid was any increase in taxes between now and when that school loan is retired."

The town is also putting a focus on preventive maintenance for its facilities by creating a new Facilities Maintenance Department, complete with a new employee. The goal is to reduce the cost of maintenance over time by consistently keeping up with it beforehand, Veal said.

Currently, about $235,000 is budgeted for the department. Veal said town officials don't have anyone in mind for the job at this time.

With the influx of development on the mountain, he said an additional building and codes employee is also included in the FY 2014-2015 budget.

The budget will be read by the council on first reading at the May 12 regularly scheduled meeting.

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