Huntingdon Council Approves Budget, Water Rate Increase

HUNTINGDON (June 10) — The Huntingdon Town Council met Tuesday for a special called session to approve first readings on four ordinances to conclude the current fiscal year and begin the next, including two that raise water and sewer rates, one to establish the Fiscal Year 2026 budget and one that makes year-end adjustments to balance the FY25 budget.

The water and sewer rate changes, automatically adjusted annually to reflect cost of living, amount to a three percent increase, broken down into volume usage and monthly minimums based on meter size.

The new usage rate for water is $4.73 per 1,000 gallons inside corporate limits and $6.56 per 1,000 gallons outside corporate limits. The minimum monthly usage rate inside corporate limits ranges from $15.66 for a ⅝-inch meter up to $1,665.54 for a four-inch meter. Outside of corporate limits, the minimum rate is $20.61 for a 5/8-inch meter.

The new usage rate for sewer service is $7.42 per 1,000 gallons inside corporate limits and $9.17 per 1,000 gallons outside corporate limits. The minimum monthly usage rate inside corporate limits ranges from $15.65 for a ⅝-inch meter up to $1,564.92 for a four-inch meter. Outside of corporate limits, the minimum rate is $19.55 for a ⅝-inch meter.

Additionally, the rate for sewer customers outside corporate limits not connected to the Huntingdon Public Water System will be calculated based on a 6,000-gallon monthly usage (previously 5,000).

Ordinances setting these new rates were approved unanimously by present council members Will Atkins, Chad Barnhart, Lori Dillahunty, Daniel Eubanks and John Sanders.

The budget for Fiscal Year 2026 was discussed and approved on a 4-1 vote, with Barnhart dissenting.

Mayor Chad Edwards opened the discussion with prepared remarks, “By working together, we have accomplished many upgrades for our town, including street and sidewalk improvements, park facilities, water and sewer upgrades, improvements to the downtown and business districts, and continuing to provide excellent police and fire protection for our hometown.

“Our goal through Fiscal Year 2026 remains to continue building infrastructure and laying the groundwork to secure the needs of future generations.”

Edwards noted that the Certified Tax Rate is not yet available from the Tennessee State Board of Equalization due to the Carroll County reappraisal. The new budget was prepared based on property tax revenue consistent with the prior year.

The mayor also said, “The town’s most valuable asset is our employees.” He outlined a four percent pay raise and the continuation of benefits including insurance premiums, health savings accounts and life insurance coverage.

He noted capital purchases planned in the budget: one police vehicle, one fire engine, a tandem truck and backhoe for the street department, a mower for the parks department and two trucks and a mini excavator for the utility department.

Grant projects include lagoon aeration and a levy for the Barnett Street lagoon.

Following the mayor’s remarks, Barnhart voiced the basis for his opposition. His concern lies in the delay in reaching an agreement with the nonprofit Friends of The Dixie, which intends to form a partnership with the Town and assume operating responsibilities.

Mayor Edwards explained that the parties are “working daily to get a partnership made,” but have run out of time to factor the deal into the new budget. He said that he, along with the budget committee, made the decision to begin the new year with The Dixie’s budget “like it was last year.”

Edwards elaborated, “We can’t zero it out, because the show must go on. But the truth is the Friends are [ ] going to help us in the new [fiscal] year. Until we get some real good data, maybe an attorney to write up agreements, we’re putting it in the budget like it is. Now, hopefully we’re going to be able to vent that money into police, fire, this building, wherever, to use it in the future, but now we’re too short on time, everything’s happened too close to our year-end.”

Barnhart expressed his frustration in wanting to support The Dixie, but wanting to see the planned partnership come to fruition. He expressed his feelings of obligation to those that voted for him for the issues he ran on: backing first responders, public safety, being fiscally responsible and improving parks.

He said, “I want to be able to tell them, there’s a plan we’re working on… I want to be able to articulate [that] in a confident way… I can’t, I simply can’t.”

Following that brief exchange, a motion was made and the vote held.

The approved budget’s General Fund projects $5,995,600 in revenues and $6,795,950 in appropriations. The resulting $800,350 deficit would dip into reserve funds, of which there is currently $7,334,107.

The Water and Sewer Fund projects operating revenues at $2,870,500 and operating expenses at $2,945,550. Factoring in non-operating finances brings the fund’s expected deficit down to $15,900. Reserve funds are currently $13,681,655.

The aforementioned Dixie Carter Performing Arts Special Project Fund projects balanced revenues and appropriations of $709,000.

The Solid Waste Fund projects a balanced, $395,000 budget.

The Drug Fund projects $43,200 in revenues and $50,050 in appropriations for a $6,850 deficit, with reserve funds at $27,147.

The council unanimously approved the year-end adjustments to the FY25 budget.

The second readings of the four ordinances as well as public hearings for the outgoing and incoming budgets are on the June 24 regular meeting agenda.

The meeting adjourned in 17 minutes.

Councilpersons Andrew Maddox and Kelly Eubanks were absent.