FY2026 Year-End Findings · Second Budget Snapshot

Stronger Than Planned

Loudon County closed FY2026 in better shape than its budget assumed. The unaudited year-end numbers handed out at the August 17, 2026 Commission workshop show revenue came in $2.5M over budget, departments held $1.8M under their ceilings, and the General Fund balance grew by $2.1 million in a year the budget had conservatively planned to draw savings down. The school fund posted the same pattern. That is cautious budgeting and a strong local economy both doing their jobs — and this page sets the new numbers beside the frozen audit-baseline simulator — which stays exactly as published — so you can see what actually moved.

Unaudited · budgetary basis Source: Aug 17, 2026 workshop handout Funds 101 & 141
County General Fund balance, 6/30/2026
$18.16M
Up from $16.06M audited at 6/30/2025 — a gain of +$2,095,947 in a year the budget planned a $2.14M draw.
School Fund (141) balance, 6/30/2026
$21.00M
Up from $19.65M audited — a gain of +$1,355,343. Sales tax alone came in $3.27M over budget.
Finished ahead of plan by
$4.24M
Planned change −$2,142,680 vs. actual change +$2,095,947 in Fund 101 — the gap between the cautious plan and the actual year.
Available for FY2027 (both funds)
$35.46M
$16,086,322 in the General Fund + $19,377,430 in the School Fund, after encumbrances and restrictions.
1 What the budget said, and what happened

Every number in the left column is from the county's own amended FY2026 budget (adopted 6/29/26). The middle column is the frozen simulator's deliberately conservative no-new-spending baseline — revenue held flat at FY2025 audited levels, spending at audit levels plus the one committed 4.5% raise. The right column is the unaudited year-end actual from the workshop handout.

County General Fund 101 — three projections, one outcome

FY2026 (July 1, 2025 – June 30, 2026) · dollars as reported; simulator column computed from its published model
FY2026Amended budget
(ceilings)
Frozen simulator
baseline
Actual
(unaudited)
Revenue$29,493,793$28,791,908$32,012,948
Expenditures$31,636,473$28,644,176$29,810,393
Operating result−$2,142,680+$147,732+$2,202,555
Fund balance change−$2.14M draw≈ flat+$2,095,947
Fund balance, 6/30/2026≈ $13.9M≈ $16.21M$18,159,914
Scoring it honestly. The budget planned for a $2.14M draw; the simulator's baseline called roughly break-even; the year delivered a $2.10M gain. That is not a knock on the budget office — a budget that estimates revenue cautiously and treats appropriations as ceilings is supposed to land on the good side of its plan, and this one did, by a lot. The simulator had the direction right — its published caveat was that "budgeted fund-balance draws historically don't fully materialize," and this year they didn't materialize at all. But it was conservative on both sides: actual revenue grew 11.2% over FY2025 audited (the model holds it flat by design), and actual spending ran $1.17M above the model's flat-plus-raise baseline. Two misses, both flagged in advance, that partly offset. The actual fund-balance gain ($2,095,947) is slightly below the operating result ($2,202,555) because of about $107K of below-the-line items.

How the budget's projected balance became the actual balance

Fund 101, "available fund balance" basis, straight off the workshop handout
Budget projected available, 6/30/26
$11,915,219
+ Revenue over budget
+$2,519,155
+ Appropriations left unspent
+$1,826,080
= Actual available for FY2027
$16,086,322
The handout's own bridge ($11,915,219 + $2,519,155 + $1,826,080) totals $16,260,454; the certified "available for FY2027" figure of $16,086,322 is computed from the actual year-end balance of $18,159,914 less $19,291 of prior-year encumbrances and $2,054,301 of restrictions and commitments. The ~$174K difference is updated restrictions, not spending. Both figures appear on the same page of the handout.
2 Where the money came from

Fund 101 revenue came in $2,519,155 over the amended budget. It was not spread evenly: the handout notes that Local Option & Statutory taxes alone were 60% of the gain, and fees in lieu of salary from three county offices added another half million.

Fund 101 revenue: budget vs. actual

Amended FY2026 budget vs. unaudited year-end actual
Amended budget Actual (unaudited)
Budgeted
$29,493,793
Received
$32,012,948
Gain / (loss) vs. budget by category · percent shown is the handout's "% realized"
County Property Taxes101% realized
+$542,222
Local Option & Statutory 60% of gain115% realized
+$1,499,134
Licenses & Permits96% realized
−$55,215
Fines, Forfeitures & Penalties91% realized
−$7,909
Charges for Current Services70% realized
−$38,920
Other Local Revenues131% realized
+$120,249
Fees in Lieu of Salary117% realized
+$553,451
State of Tennessee92% realized
−$55,262
Federal95% realized
−$14,725
Govts, Citizens Groups & Sources86% realized
−$23,869
Total revenue gain
+$2,519,156
What drove it (finance office notes on the handout): local option sales tax +$592,068, business tax +$594,385, hotel/motel tax +$243,986, investment income +$86,678; and fees in lieu of salary — County Clerk +$270,596, Trustee +$129,236, Clerk & Master +$77,766. Note what that list is made of: consumption taxes and interest-rate-sensitive income. It is real money, but not all of it is the kind you can safely assume recurs every year.
3 Where the money didn't go

Departments spent $29,810,393 against a $31,636,473 budget — 94% — leaving $1,826,080 of appropriations unspent. Appropriations are legal ceilings, not targets, and this is the pattern the frozen simulator documented: audited actuals typically come in below them.

Fund 101 spending: budget vs. actual

Amended FY2026 budget (ceilings) vs. unaudited year-to-date spend
Amended budget Actual (unaudited)
Budgeted
$31,636,473
Spent
$29,810,393
Left unspent, by function · percent shown is the handout's "% spent"
Public Safety 36% of gain96% spent
$663,383
General Government93% spent
$341,883
Public Health & Welfare76% spent
$327,707
Administration of Justice93% spent
$215,184
Finance95% spent
$197,169
Ag & Natural Resources87% spent
$38,899
Social, Cultural & Recreational94% spent
$27,610
Other General Government99% spent
$14,244
Total left unspent
$1,826,079
Year over year, spending still grew. FY2025 audited expenditures were $27,545,276; FY2026's unaudited $29,810,393 is about 8.2% higher. The fund balance grew anyway because revenue grew faster (11.2%). "Under budget" and "spending less" are not the same thing — this year was under budget and up over $2.2M from last year.
4 The school fund did the same thing

General Purpose School Fund 141 is separate from the General Fund (and from the school construction debt, which has its own fund and levy). Same workshop handout, same pattern: revenue over, spending under, balance up.

Fund 141: budget vs. actual

Amended FY2026 budget vs. unaudited year-end actual
Amended budget Actual (unaudited)
Revenue — budgeted
$59,098,190
Revenue — received
$62,627,796
Spending — budgeted
$65,438,262
Spending — actual
$61,798,817
Revenue gain / (loss) vs. budget · handout's "% realized"
Local Option & Statutory169%
+$3,337,241
Other Local Revenues370%
+$411,013
County Property Taxes103%
+$335,697
Govts & Citizens Groups117%
+$12,128
Federal102%
+$6,304
Licenses & Permits159%
+$710
Charges for Current Services42%
−$11,909
State of Tennessee99%
−$561,579
Total revenue gain
+$3,529,605
Left unspent, by category · handout's "% spent"
Instruction95%
$2,329,484
Support Services94%
$1,145,652
Non-Instructional Services91%
$118,552
Capital Outlay96%
$45,757
Total left unspent
$3,639,445
The drivers (finance office notes): local option sales tax +$3,265,148 and investment income +$352,359. The one real shortfall: State of Tennessee funding came in $561,579 short of budget — worth a question about which state line underdelivered.
Fund balance: $19,647,626 audited at 6/30/2025 → $21,002,969 unaudited at 6/30/2026 (+$1,355,343). After $568,188 of prior-year encumbrances and a $1,057,351 restriction for Hybrid TCRS stabilization, the handout puts $19,377,430 available for FY2027. The budget had projected only $12,132,665 available at year-end.
5 What it means for FY2027 — and what it doesn't

The runway

Both funds enter FY2027 stronger than their budgets assumed

The General Fund starts FY2027 with $16,086,322 available — almost exactly the $16.06M it had at the start of FY2026. Two straight budgets have planned prudently for draws the county never ended up needing. The adopted FY2027 appropriation is $33,230,550; if the county spent every dollar of that ceiling and revenue merely repeated FY2026's $32.0M, the draw would be about $1.2M against a $16.1M cushion — and history says the ceiling won't be fully spent. (That last sentence is my arithmetic, not the handout's.)

The reserve position — roughly 50%+ of annual revenue — remains far above the 10–15% healthy threshold the simulator uses.

The honest caveats

Before anyone spends this on paper

These numbers are unaudited, on a budgetary basis; the audit can move them. The gain is concentrated in consumption taxes (sales, business, hotel/motel) and interest income — revenue that tracks the economy and the rate cycle, not a permanent floor. One strong year is a data point, not a trend: the frozen simulator's 0%-growth baseline was beaten badly this year, but that is exactly the kind of year that tempts governments into building recurring spending on non-recurring strength.

Spending still grew 8.2% year over year. If that pace continues and revenue growth reverts, the margin closes fast — that is the scenario the simulator exists to test.

The snapshot promise, kept. The FY2025 audit simulator stays frozen exactly as published before the election. This page is the second snapshot, built beside it — set them side by side and check the arithmetic yourself. When the FY2026 audited numbers arrive, they get the same treatment.
Sources. "FY 2025–2026 Fund Summary per Year End Report (Unaudited) — County General Fund 101, General Purpose School Fund 141," distributed August 17, 2026, Loudon County Commission workshop (finance office year-end report). FY2025 audited figures: Loudon County Annual Financial Report, FY2025, Exhibit C-3. FY2026 amended budget and FY2027 appropriations: Commission resolutions adopted June 29, 2026. Simulator baseline figures computed from the published model at loudon_budget_2025_audit_simulator. Dollar figures are transcribed from the handout; percentages in the category tables are the handout's own rounded figures. Prepared August 18, 2026 · Jason Tuttle, Loudon County Commission, District 2 Seat A.