Town of Greeneville sends Greene County invoice for share of school debt

Local

County mayor: leaders are giving invoice "due consideration"

The Town of Greeneville has sent the Greene County government a $2.84 million invoice for what town leaders say is Greeneville’s share of financing secured for Greene County Schools.

According to town administrator Todd Smith, the invoice was submitted to the Greene County Mayor’s Office on Monday.

Smith said this comes after the county commission voted in June to level the tax rate both in and out of town limits. That decision meant at 16-cent property tax increase in Greeneville, which went into effect July 1.  

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Smith told News Channel 11 the increase is being used to pay for county school system debts. Under Tennessee law, the city school system receives a proportional share of the county school debt.

The $2.84 million invoice was determined by taking the average Greeneville Schools attendance rate of .32% and multiplying it against the remaining outstanding debt service from the county, or $8.8 million.

When the Greene County Commission first approved the tax increase, Smith told News Channel 11 that negotiations would be necessary between the county and town to decide how the money will be distributed.

County Mayor Kevin Morrison told News Channel 11 he and other county leaders are giving  “due consideration” to the invoice.

He also said they are checking with the state comptroller’s office, as well as other financial and law experts, to ensure the county commission proceeded correctly when leveling the tax rate.

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