COLLEGEDALE — The Collegedale board of commissioners passed the fiscal year 2026-2027 budget on first reading at its Monday night meeting. The spending plan begins drawing down the city's excess cash reserves at the direction of the Tennessee Comptroller.

City Manager Jon Holmes told the commissioners that the city has too much in cash reserves. The state does not allow a municipality to have a reserve exceeding six months because it believes the city could be overtaxing residents.

The proposed general fund budget includes $15,163,700 in cash receipts, of which $11,105,500 comes from taxes. Total appropriations are planned at $18,690,400, with $3,536,700 drawn from the fund balance.

Among the largest capital project expenses are a new Dell server and site-wide PC refresh, Wi-Fi upgrades and a redundant firewall. The budget allocates $175,000 for city signage and $100,000 for a camera project.

For the police fleet, $892,000 is budgeted for 10 Ford Explorers, including police equipment. Equipment for the public works department includes a $200,000 excavator, an $85,000 skid steer and $95,000 for mowers. The budget also sets aside $300,000 for a garbage truck and $225 for a front end loader.

Holmes said he expects all department heads to stay on their budget throughout the year. If an unbudgeted need arises, department heads must request the expense from him, and he will then present it to the commissioners. He said he would keep the commissioners informed if an emergency purchase is needed.

Financial Director Michelle Toro said April's financial report is 83 percent through the fiscal year, and that the city has received 90 percent of projected revenues and made 96 percent of planned expenditures. Toro said budget amendments will be presented at the first and second commission meetings in June.