Signal Mountain Council dealing with $800,000 deficit

SIGNAL MOUNTAIN, Tenn. (WDEF) – The Signal Mountain Town Council wrestled with how to tackle a larger than $800,000 deficit.

An auditor told the council that the town of Signal Mountain owed over $400,000 to a state fund for road projects that had not taken out of the town’s general fund.

This combined with a failure to pay previous loans has required the council to approve a capital outlay note, which are used to fund various projects to help the town repay its debts.

Signal Mountain Mayor Charles Poss said during the meeting, “We have two options here. One is to enter into this note, to pay off the funds over time, however much time we want or to allow. Or we can just transfer the funds and be done with it all in one fell swoop.”

Half of the debt will be dealt through the capital outlay note while the other half will be from the town’s general fund.