Macon County is in a good place so far in the 2025-26 budget, according to County Manager Warren Cabe as of the Feb. 10 Board of Commissioners meeting.
Cabe presented the information as part of a mid-year budget review as the county prepares for budget season. Cabe started by discussing sales tax revenue, highlighting revenue from retail sales from July through November of 2024 and 2025. In 2024, $7,515,580 was collected during that time period, compared to $8,272,918 in 2025. That’s an increase of $757,339 or 10.08%. Cabe said this was a good trend.
Overall tax revenue as of Dec. 31 was $30,376,559, collected at 83.7% of the $36,584,667 budgeted. That rate is comparable to the 83.6% collected at the same time in 2024.
“Obviously the number is a little higher, but that’s because of the value that we added to our tax base,” Cabe said. “So, from a perspective on the funds that we have coming in, we’re looking where we need to be on tax.”
The county has collected approximately 57.2% ($41,984,571) of the $73,430,568 budgeted for the general fund and spent approximately $40.6% ($29,827,120) of that fund as of Dec. 31. Cabe said this was a good place to be in at the mid-point of the fiscal year. He noted the projected budget had decreased slightly since, but said that amount will adjust as additional grant funding comes in.
General fund debt continues to decrease and is projected to continue decreasing from $9,554,133 in 2026 to approximately $5,360,300 in 2036 and $3,366,000 in 2045.
“When that comes down, that either frees up the money for other things or you can go back to that borrowing power,” Cabe said.
The fund balance increased from $25,438,347 as of June 30, 2016, to $55,461,599 as of June 30, 2025. From 2020 to 2023, the fund balance increased from $31,497,185 to $51,703,201 in 2023, with between $6 and $8 million added each year. The fund grew again by $3.3 million in 2024. However, in 2025, the fund balance increased by just $455,378.
Cabe said the lower growth in 2025-26 can be attributed to significant expenses coming out of the fund balance including renovations at Highlands School and the Macon County Public Library.
Cabe outlined potential future capital projects, which may need to be funded in the 2026-27 fiscal year. These include an estimated $2 million for improvements to Veterans Memorial Park, upgrades and repairs at the detention center totaling $250,000 and renovations and construction at Southwestern Community College totaling $2.5 million. Cabe said some of the listed projects are already in the works or being designed.
Quarter-cent sales tax referendum
Betsy Baste gave an update from the quarter-cent sales tax committee and introduced a resolution for the Macon County Board of Commissioners to declare its support for the referendum and intent to use revenue from the increase for capital projects like those listed in the mid-year budget presentation. Future boards would not be legally bound to use the funds for capital improvements.
Baste said the committee includes former teachers, marketing professionals, former county employees and leaders from both parties. The goal of the committee is to educate the public on what exactly the increase is and what it does with the goal of seeing the ballot initiative pass when it is voted on in November.
If passed by a majority of voters in November, the measure would raise the current sales tax rate from 6.75% to 7%, adding a cent in sales tax to every fourth dollar spent starting at $3. It would take a $100 purchase to pay an additional 25 cents in sales tax. The tax would not apply to groceries, prescription drugs or gas and is anticipated to raise approximately $2.3 million per year in revenue for the county. While county funds can be used to educate the public on what the tax is and what it does, the county cannot spend money advocating for or endorsing the measure.
Baste said approximately 40% of the $2.3 million raised was estimated to be covered by tourists and through-travelers making purchases in the county, offsetting the burden to residents.
Commissioner John Shearl said, “If you really, truly want to target and create revenue by outsiders then you reduce the same amount of money off property taxes so the property owners do not pay additional funds. That’s how you target an outsider.”
Shearl said he had encountered people who were told they could choose between voting in favor of the referendum or see property taxes rise. Baste said she did not know who was saying that, but the committee was not.
Commissioner Josh Young said, “I’ve made that comment numerous times … I genuinely feel that way. I feel like the way our budget is turning right now, we’re due a mill rate correction and my suggestion was just that.”
“You have to balance. Essentially, where do you want to get money?” Young said.
Shearl suggested using the general fund and raising funds by asking directly for donations, saying “I don’t have a lot of money, but I can afford to pay more. But unfortunately, there are a lot of people in our county that absolutely cannot pay $1 more … I’ve heard it out of a lot of people in the county, ‘I want to pay more’ and thank your blessings that you can pay more.”
“I would challenge 20,000 people in this county, and I’ll start it. I’ll write Macon County a check for $500 to go in this capital improvement fund. If 20,000 people will follow me that’ll get $1 million, and you know what we do? We don’t target people that can’t afford to pay them,” he continued.
The board voted 4-1 to approve the resolution supporting the referendum and declaring its intent to use the funds for capital improvements, with Shearl against. He said he was in favor of the measure being put up to a referendum but was not willing to put his name on the resolution.
The next Board of Commissioners meeting is Tuesday, March 10, at 6 p.m.