Surgoinsville officials approve budget, emergency sewer fix

SURGOINSVILLE — The Board of Mayor and Aldermen Tuesday evening approved the 2026-27 general fund budget of nearly $1.7 million and an emergency sewer line fix for the Johnson Estates residential subdivision that could cost $60,000. The board voted 6-0 with one seat vacant to approve both during the called meeting. The sewer fix, which involves replacing a failed 2-inch line with a 4-inch one leading to Main Street line, might be paid for from existing sewer project funds or an emergency grant via the Tennessee Department of Environment and Conservation. BUDGET The general fund budget was approved, while the sewer budget carried no rate increase. There also was no change from the Tennessee-certified property tax rate of 75.5 cents per $100 of assessed value. Vice Mayor Randy Collier said a countywide reappraisal dropped it from $1.22 per $100 of assessed value. For residential property, that rate is applied to 25% of the assessment, for commercial property 40%. The budget includes a 2% raise for city employees. Since the last board meeting, the changes were a shifting of funds among line items. Mayor Merrell Graham said he was pleased the city budget was balanced with no fee or tax increases. Collier said the budget as amended was presented for approval with the understanding some moves and amendments might be needed throughout the year. Further, Collier said the property tax changes and reappraisal resulted in less than $1,000 in additional revenue from property taxes. "We had to move some money around," Collier said. Some expenses were over-projected initially but have been lessened, while areas that needed more funding got it, he said. All told, the approved budget is $1,689,486, up from the audited 2024-25 budget of $1,514,458. The fund balance or unrestricted reserve is projected to start July 1 at $559,200 and end at $560,574 June 30, 2027. Voting yes were the mayor, vice mayor and Aldermen Warren Bishop, Tim Hoss, Kaley Mierek and John Sandidge. The seat of the late Bob Jarnigan remains vacant until filled by the city election in November. SEWER ISSUES Police Chief James Hammonds, who helps oversee the sewer operations, said the problem with the 2-inch sewer line — other than it was too small to handle the discharge from the subdivision — is that it did not have the property gravel underfill to keep the line from moving. The mayor said rain has caused gravity flow section of sewer pipe to back up, which Hammonds said was requiring digging and clean out by pumping two to three times a month. "I don't know why they ever put a 2-inch line there," Graham said after the meeting. City officials said about 300 to 400 feet of line will need to be replaced. City Attorney Joe May said that a required 8-inch bed of gravel was not installed and that a 2-inch line should have been larger. However, the four-year statue of limitations to seek compensation for the matter from the contractor and/or engineering design firm might be nearing an end. The board voted to pursue the emergency fix immediately and instructed Hammonds and May to take actions in that regard. Hammonds said TDEC might balk at using some leftover funds from sewer projects in others areas of the city. B, he said he is hopeful TDEC would allow that and/or have emergency grant funds to fund the emergency project retroactively. "We're having to pump it because it's a dire, dire issue," Hammonds said. The project to bring sewer serves through the Virginia Hills Subdivision in the eastern area of town is done and has leftover funds; but Hammonds said he is unsure if TDEC will allow those to be used on Johnson Estates in the western section of town. The separate Sewer Fund revenues were projected at $249,100, up from the audited $243,262 for 2025-26, with revenues exceeding expenses. The city initiated a sewer system in 2015, with sewage partially treated in septic tanks and them pumped to neighboring Church Hill's sewage treatment plant for full treatment. The fund was about $81,000 in the red until the final budget proposal. ROAD ISSUES On another utilities-related matter, Hammonds told the board the Zion's Hill Road waterline replacement project is close to complete. However, the project has left the road with damage from about 10 cuts through the asphalt, including three in newly paved areas. In addition, he said parts of the road are crumbling and literally missing because of heavy equipment damage. He said the city won't be making final payments, which May said was proper while pointing out the contractor had to be bonded, until the issue is addressed. Hammonds said the contractor doesn't think the road condition issues raised are his responsibility. Mierek reiterated her strong opinion that Hawkins County school buses should not use Zion's Hill because of the current conditions as well as it being narrow, even if the condition issues are addressed. Other aldermen agreed, and Collier said city officials will talk with school transportation officials about buses not using that road and possibly the nearby Creek Road, also winding and narrow. They said one of the roads has a a family with school children living along it while the other one doesn't.