Oliver Springs council sets public hearing on 19¢ budget proposal after debate over cuts and grants

Mayor Joe called the Oliver Springs Town Council into session and the body voted to set a public hearing on a proposed FY 2026–27 budget that would raise the towns property-tax rate by 19 cents.

The hearing was set for June 17 at 6:30 p.m., followed by the regular meeting at 7 p.m., to meet a 10-day public-notice requirement. The motion to hold the hearing on budget option D (the 19¢ proposal) was moved by Theresa Van Hook and seconded by Charlie Bailey; the clerk recorded the motion as "Passes 4 to 0 to 1."

Town staff presented multiple tax-rate scenarios ranging from a 14¢ to a 20¢ increase and said each option required cuts to staff and/or capital projects. Staff stated the town faces revenue pressure from a recent county property-tax reassessment (staff noted an equalized rate figure communicated by county assessors) and a decline in sales-tax receipts, and that the loss of a federal grant would require the town to make up roughly $98,000–$99,000 in next years budget. The presenter said the lowest scenario (14¢) included eliminating two staff positions and deferring several capital projects; higher-rate scenarios preserved more services and projects but increased the tax burden.

Officials identified several capital projects tied to the proposed budgets: a roughly $40,000 police vehicle purchase (partially cost-shared with water/sewer), a $6,000 fire-department window/door project, a $133,000 parks grant for track/lighting/ADA improvements, an $18,000 mower for parks, and a roughly $11,004.50 library allocation funded through Roane County. The presenter noted a $12,000 boundary-survey item was included across scenarios to clarify service areas.

Speaking to the room, the presenter summarized the political and practical constraints: "If you consider population on fixed incomes, it's going to be a hard sell," and added that staffing shortages and three years without raises meant municipal employees had gone without cost-of-living adjustments. Council members weighed the tradeoffs, including postponing a town-hall roof replacement to preserve funding for the police vehicle and parks projects.

The next procedural step is the June 17 public hearing; the council will accept public comment and then return on a later date to adopt a tax rate and finalize the FY 2026–27 budget.

The vote to schedule the hearing passed; the council also discussed alternate dates before settling on June 17 to satisfy legal notice windows.