Tennessee § 5-12-210 - Adoption of budget, tax rate and appropriation resolution.

§ 5-12-210. Adoption of budget, tax rate and appropriation resolution.

The county legislative body shall each year adopt a budget, tax rate and appropriation resolution on or before twelve o'clock (12:00) midnight of the earlier of the date provided in any private act, or applicable under the County Financial Management System of 1981, compiled in chapter 21 of this title; or applicable under the County Budgeting Law of 1957, compiled in part 1 of this chapter; or July 31, for the fiscal year beginning on the first day of such July. Nevertheless, if the budget, tax rate and appropriation resolution are not adopted by the county legislative body on or before twelve o'clock (12:00) midnight on June 30 for the ensuing fiscal year, all departments and offices of the county may make expenditures according to the budget of that department or office as adopted for the preceding fiscal year, except that such departments and offices are limited to expenditures and obligations based on a monthly allotment from the preceding fiscal year's budget. If the county legislative body and the county school board fail to agree upon a budget for the county department of education by August 31 of any year, then, by operation of law, the budget for the county department of education shall be equal to the minimum budget required to comply with the local match and maintenance of effort provisions of the BEP. However, if for three (3) consecutive years, the county legislative body and school board fail to agree upon a budget and the department of education receives the minimum required funding for that fiscal year by operation of law, then, the budget in the third year shall include a mandatory increase that is equivalent to three percent (3%) of the required funding from local sources for schools; provided, however, this increase shall not be required if during any of those three (3) years the school board failed to submit its budget proposals in accordance with a timeline provided for in § 5-12-208. If the county legislative body fails to adopt a budget, property tax resolution, and appropriation resolution by August 31 of any year, then by operation of law, the operating budget for the ensuing fiscal year, other than the portion for the county department of education, shall be the consolidated budget with proposed amendments submitted by the county mayor or the budget committee. All budget proposals, including the consolidated budget proposal submitted by the county mayor or budget committee and the budget as finally adopted, shall establish the number and salaries of all full-time personnel authorized therein. The budget as adopted shall be balanced as to all funds. The setting of the tax rate, by approval of the county legislative body, by operation of law, or otherwise according to law, constitutes a valid tax levy for collection purposes in accordance with this part. The board of education, through its designated representative, has the right to address the county legislative body in regard to the board's budget and tax rate proposals. Acts 1993, ch. 431, § 10; 1996, ch. 697, § 1; 2003, ch. 90, § 2; 2016, ch. 1080, § 12. Compiler's Notes. Acts 2003, ch. 90, § 2, directed the code commission to change all references from “county executive” to “county mayor” and to include all such changes in supplements and replacement volumes for the Tennessee Code Annotated. Amendments. The 2016 amendment rewrote (b) which read: “(b) If the county legislative body fails to adopt a budget, property tax rate resolution and appropriation resolution by August 15 of any year, then the portion of the consolidated budget for the county department of education, as proposed by the board of education or modified with the agreement of the board of education, and the accompanying property tax rate for education and the appropriation for the county department of education, embodied in the submitted resolutions, shall become effective by operation of law for the ensuing fiscal year. If the county legislative body fails to adopt a budget, property tax rate resolution and appropriation resolution by August 15 of any year, then the operating budget for the ensuing fiscal year, other than the portion for the county department of education, shall be the consolidated budget with proposed amendments submitted by the county mayor or the budget committee.” Effective Dates. Acts 2016, ch. 1080, § 18. May 20, 2016. Cross-References. Option to redesignate county mayor as county executive by private act, § 5-6-101 . Attorney General Opinions. Local Option Budgeting Law and Private Act, OAG 00-059, 2000 Tenn. AG LEXIS 60 (4/3/00).