Mount Carmel leadership discusses budget priorities for upcoming year

MOUNT CARMEL — Mount Carmel's Board of Mayor and Aldermen discussed the upcoming year's budget Monday afternoon. Assistant Town Manager Tyler Williams ran through the fiscal year 2026-27 budget draft. Revenue The general fund's total revenue, Williams said, is projected to be $4.1 million. That's down about 600,000 from last year but does not include grants the town may receive, Williams said. He's expecting a slight growth in the revenue, compared to the current year. Town Manager Jim Stables noted that this is a reappraisal year, when the county property assessor must equalize property values to match sales data, which affects property tax revenue. Stables said Mount Carmel should have a better idea of its impact by late April. Williams projected building permit and beer license revenues to stay flat. There will be a slight, population-based increase in state taxes. Other revenue sources include park and recreation rental fees, interest earnings and fines/penalties. The latter, which involves the city court, should grow as Mount Carmel's police department hires more officers and help cover its operating costs. Expenditures Stables recommended a 2.5% increase to town staff's salaries for a cost-of-living adjustment and a 2.5% increase to the pay scale. The COLA would start with the new fiscal year, while the pay scale increase would be staggered according to an employee's hiring anniversary. This represents $51,800. Stables also recommended a 3% COLA for himself. He said the town needs salaries that can recruit and retain employees. Stables also mentioned increasing the fire department's coverage and bringing part-time firefighters into the town's pay plan like other part-timers. Mayor John Gibson noted that these firefighters have paramedic training, increasing the town's emergency medical response capacity. Other fire department expenses include replacing out-of-date radios and putting a top coat on its parking lot. The police department's budget includes two new entry level officers, in addition to the two recently approved patrol supervisors. This will bring the department up to 10 officers, once they're all hired, and one chief. Eight is the minimum amount to have around-the-clock coverage. Stables said town leadership has also discussed entering into a contract with Flock Safety for cameras that alert officers when people with warrants drive through the area. This program, if started, would be a recurring expense. The cameras wouldn't be used for speed tracking. Most requests from the public works department are similar to last year's, Williams said. Expenses include $85,000 for work on the department's building exterior, an estimated $450,000 for road paving, $80,000 for a bucket truck and money for a mowing tractor. Williams also mentioned speed limit signs — that measure a car's speed and flash if it is over the limit — at Independence and Hammond avenues. In the recreation fund, Williams said he put some more money toward the upkeep of the park's veteran memorial. The town will also focus on providing shade at the park, which has been a popular request from residents. Mount Carmel is seeking a $2 million state grant for possible projects like improvements to the baseball field, basketball court or walking trails; installing a splash pad; and more. Williams also requested to repave the park's parking lot. Regarding capital projects, Williams said the town is in a good place to do these investments and one-time expenses. There is $1.5 million coming from the fund balance for these projects, leaving a year's worth of reserves — $5 million — in the bank. In the future, he said, Mount Carmel will need to raise revenues if it wants to keep this momentum. The budget draft included a $128,000 placeholder payment to the Hawkins County Emergency Communications District to see the impact of the HCECD's new policy requiring municipalities to buy into its services. Mount Carmel's leadership has opposed this policy and is seeking alternative solutions to paying the 911 dispatch fee. The draft also included a $1,000 donation to the Hawkins County Imagination Library, part of Dolly Parton's early childhood literacy initiative. Aldermen Jim Gilliam and Philip Binstock expressed concerns at donating money, saying it may not benefit Mount Carmel residents while opening the door to more organizations to ask for town money. Williams said the contribution isn't harmful to the overall FY '26-27 budget, and the program does reach Mount Carmel children. The board will further discuss the budget at its April 9 work session, and vote on the first reading of it on April 23.