The Carter County Budget Committee made moves to fund a single-point security system at the Carter County Courthouse during Monday’s meeting.

The project, which needs $600,000, was originally going to be funded through an inter-fund loan of $500,000 from the debt service fund to the general fund with the remaining $100,000 coming out of the litigation fund. That loan was scheduled to be paid back over three years at a 2.0 interest rate. However, a resolution passed by the Carter County Commission approving the inter-fund loan was vetoed by Mayor Humphrey due to the interest rate which Humphrey felt was unnecessary. The veto was upheld by the commission during the Aug. 6 meeting.

During  Monday’s meeting, committee member Robert Acuff made the motion to fund the security system in the same manner as before with an inter-fund loan of $500, 000 to be paid back at a 2.0 interest rate along with $100, 000 from the litigation fund. Acuff said he felt it made “good business sense” to pay the money back to the debt service at an interest rate since the $500,000 would have collect interest through other means if left in the debt service fund balance.

“I can’t recall how many times during the budgeting process we were told by our fellow commissioners and the mayor that we needed to be more like a business,” said Acuff. “To me, it is good business sense to borrow money from ourselves and pay it back with interest.”

However, during the discussion on the motion, Humphrey spoke up saying he would again veto any resolution that included an interest rate.

“Why in the world would Chairman Acuff make such a motion,” said Humphrey. “We have already been through this process once before. That is exactly the resolution that was vetoed. And the veto was sustained by the commission. My position is the same. You go ahead and put together another resolution and I will veto it as well.

“I have no problem in operating like a business,” continued Humphrey. “I have always said that from day one, and I think my record shows that I have sustained that. The problem I have is why would we want to charge ourselves interest. We need to create a loan but with zero interest. Why would we charge the taxpayers?”

Humphrey went on to say he feels the county is in a good financial situation and in no position of needing a loan, stating that no other county in East Tennessee has 50 percent of general fund expenditures in its unassigned fund balance.

Acuff’s motion failed.

On the tail of Humphrey’s comments, Grindstaff, who is also Chair of the Building and Grounds Committee, made a motion to use $150,000 from the litigation fund and $450,000 from the fund balance to pay for the single-entry point security system. The motion passed and now must be approved by the county commission.

The committee also voted for a proposal to pay off $128,053.22 in school debt with monies from the General Fund fund balance.