TELLICO VILLAGE, Tenn. — The Tellico Village Property Owners Association officially has debuted and approved its operating budget for 2026.
The budget draft was initially presented on November 14, where Chief Financial Officer Judy Bedford outlined the biggest points of spending and expenses the Village would be anticipating during the upcoming year.
Bedford explained that the newly implemented balanced scorecard guidelines acted as a sort of rulebook for this year’s outlay — highlighting the four quadrants of customer and community, financial stewardship, infrastructure and operations along with people and growth.
MULTIPLE ACCOMPLISHMENTS
According to the report, the Village hit almost all its marks.
They achieved their goal of a $9 million surplus across departments, kept their 3% merit pool intact and saw a subsidy reduction of 10 percent in areas like golf and recreation. The only slight misstep was in operating expenses, which saw an overdraft of slightly more than a percent. Assessments are expected to hit a slight increase, around $5.45 per month, totaling at $65.45 annually.
“Assessments remain within the Board’s guidance,” Bedford stated. “No more than a 3 percent increase without justification. We continue to balance affordability with the funding needed to sustain operations and reserves.”
Employment costs were also recorded at an increase, partially due to new hires and various benefits provided to Tellico Village employees like group insurance and other various benefit packages.
With most of the Village now being occupied or built out, reducing overall growth, one key figure highlighted was in member participation among current residents. Her report projected almost 7,000 assessment paying properties, with a staggering 114,085 rounds of golf on a member participation rate of roughly 86 percent.
Recreation membership numbers are projected to remain stagnant, along with new housing build out, with 123 new home starts predicted.
WATER RATES AND USAGE
One of the main talking points was also centered around water usage, as early drafts show that the Village is gearing up for around half a billion gallons of water to be purchased in the next year, seeing an average rate increase of 12 percent.
According to these initial reports, the current water usage documented and even accounting for new builds mainly tied to old projects still doesn’t see a need for more storage, mainly referring to the ongoing elevated water storage tank project. This assumption would reduce the cost of the project by around $4 million.
Bedford also stated that according to the analysis, water rates could see a “meaningful reduction.” The scorecards showed water and sewer rates that were significantly lower than a typical charge by the Loudon Utilities Board for clients living outside the agencies city limits.
“The sustainability of these reductions depends on the TAP project scope and timeline, holding true to the assumptions built into our forecast,” Bedford explained. “We’ll continue to monitor those factors closely as the analysis progresses.
“We strive to keep rates affordable for residents while keeping the long-term financial health of the water and sewer system.”
Another longstanding project addressed that’s nearing completion was the Tanasi Rebuild, nearing completion and set to debut in early 2026. While the initial opening of the facility will be propped up by a subsidy of around $317,000, Bedford estimates that by the summer of 2027, the building will be operating fully in the green with a surplus nearing $375,000.
CUSTOMER SATISFACTION
At the November 13 meeting, Board Chairman Joel Reed also gave a peek at the new customer satisfaction surveys, set to hit in-boxes in 2026. The surveys will mail out a simple, short-form questionnaire to 50 residents over the course of the year, combining all of those results for further review.
The initial report is slated to be presented at the May 2026 POA meeting, with the idea being that these first few polls will provide a baseline to build off of in the years to come.
In the same vein, the board will also be premiering customer experience surveys, mainly centered around amenities like public works and utilities, food service, golf and recreation … as well as the POA Office. On a much more stringent timeline, results from these surveys are set to be collected and presented on a more regular basis.
According to Reed, the Board’s goal is to reach a satisfaction level of at least 85 percent.
“[The surveys] wouldn’t be so general as to say ‘Do you love living in East Tennessee?’” said Interim General Manager Matt Benoit. “We’re really honing in on ‘Have you had an opportunity to interact with a TVPOA employee, how was your customer experience, what was your perception, did they follow up?’”
While every individual facet of this year’s budget was accepted by the POA at their November 19 meeting, it wasn’t without its disagreements. Board members Mike Lackey and Joel Reed didn’t vote to approve the main capital project and operation expense portions of the proposal — with Reed citing a need for more detail-oriented and process-based planning rather than a perceived increase as a reaction to growth.
Reed stated that he’s seen an increase of almost 50 percent in salary and wages in the last five years.
“I think we should be identifying exactly what needs to be spent in our fees and our charges should match those exactly per year,” Reed explained. “I do not think we should be saying that over a five year period, we’re going to charge a number for things that haven’t been fully vetted.”
The main budget approval doesn’t approve every individual project anticipated in the new year. The vote of approval merely outlays the line items expected … with the necessary changes and adjustments to be made as the Board sees fit down the line.
