The Ashland City Town Council met June 10 for its annual budget discussion, and there was a lot to be discussed.
Ashland City Mayor Gerald Greer opened the workshop stating, “I want to take just a few minutes to share information with our Ashland City friends, neighbors and taxpayers that I hope will help them understand the current financial challenges our city is facing.”
Earlier this year, city auditors reported they were unable to audit the books due to their condition. The city then hired an auditing firm to examine the financial records to determine the town’s current financial state and help plan for the 2025-2026 budget.
“To this day, the CPA firm is continuing to work with us to gain an accurate picture of where we really stand financially,” Greer said. He elaborated on the issues, “The prior administration did not budget for the additional debt the town assumed with the construction of our new fire station number one and our new city hall. There was no budgeting for the monthly mortgages on these properties, nor was there any budgeting for maintaining these properties.” That means the budget did not include utilities, insurance, housekeeping and other related facility expenses.
In addition, Greer said they discovered the previous administration listed sources of income that did not exist. Grants that were never applied for were listed as sources of income. Add to the issue, Greer shared that the city’s sales tax income was less than was anticipated.
Greer said he has spent hours working with department heads to closely examine every current and proposed expenditure to prevent a budget deficit for this current fiscal year, as well as for the upcoming 2025-2026 fiscal year.
“Your city council is aware of the situation we are in and is working with me and our department heads to make the right financial decisions as we move forward. It is my administration’s job to fix the problems we were left with. We will find ways to tighten our belt without sacrificing the services our town deserves,” Greer stated. He added, “We will move through these unforeseen and difficult times, and we will put our town’s government on solid financial ground.”
According to Tennessee Comptroller director of communications John Dunn, the audit of the town’s fiscal year July 1, 2023 through June 30, 2024, was not submitted by its December 31, 2024 due date. Dunn said the Atlanta-based auditing firm Maudlin & Jenkins told Dunn’s office it hopes to submit a draft of the report for review by June 15.
As for the new budget, Dunn said, “We would like all local governments to adopt their annual budget on or before June 30. However, the absolute deadline is August 31. After August 31, a local government would not be able to issue debt outside of an emergency situation.”
The June 10 workshop, which ran over three hours, included discussion with each department head on needs for the upcoming year and ways to trim expenditures from their budgets. A major talking point was how to reduce the town’s current deficit of $341,849, which had an initial estimate of $1,180,718. Officials discussed ways to reduce the deficit without having to raise property taxes and still provide town employees with a cost-of-living increase.
Town officials advised the town’s fund balance is good, but the state requires municipalities to keep several months worth of operating expenses on hand in the fund balance which should be used for one-time expenditures, not regular operating expenses.
The town has been operating without a finance director since Gayle Bowman, who served under the previous administration with Mayor JT Smith, left. Greer said he could not comment on Bowman as the due to active litigation. While there has been talk over the last year about hiring a city administrator and other positions, the town is currently without the funds to do so.
Greer said he wants to see money put aside to hire another finance director. “Our biggest place that we’re lacking right now is our finance director position…The only way that we’re going to attract this position, number one, is we have to get our books cleaned up and get us in order so that we’re running smoothly, because right now nobody’s going to take this job.” Greer also noted the position will have to pay more “to get somebody who is really what we need for director.”
The budget workshop discussion will resume on Tuesday, June 17 at Thrive 55+ in Ashland City at 6 p.m. The two readings required to pass the new budget will be scheduled once the draft of the new budget is completed, but Greer said he is hopeful to get the two required readings in by the end of the month.
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