Officials of the Humane Educational Society said Wednesday they are in dire financial straits, including facing a huge unexpected property tax bill.
Jim Kennedy, volunteer board president, told members of the County Commission that costs of the facility continue to rise, and the center has had to deal with several large influxes of dogs, including 19 Huskies from a Harrison residence and 56 dogs abandoned at Ooltewah. Care of the Huskies cost $84,000 with no restitution given in that court case.
Mr. Kennedy said the HES received $621,000 annually from the county from 2017-2023. It requested an increase to $1.4 million, but only received an extra $77,000 in the most recent budget. He said HES gets under $150,000 from Collegedale, Signal Mountain, Soddy Daisy and Walden combined, but is trying to renegotiate their amounts.
He said the government contributions is under $1 million, while its budget has risen above $2.4 million a year.
Mr. Kennedy said the agency continues to carry out fundraising efforts, including a recent $250,000 drive. But he said under the dire budget situation, there are threats of significant budget cuts, including ending the spay-neuter program.
Asked if the HES has any money saved, he said the building fund had been depleted and no private bequests have been received in three years. But he said $700,000 is in savings.
Mr. Kennedy said the HES received a $60,000 tax bill for one year for its new property on Randall Circle. He said it was found that the facility, which had never paid taxes for the old Highland Park facility, had total tax bills from the city and county of $470,000 dating back several years (from the date of purchase of the property).
He said the HES recently filed for tax exemption with the state and it was granted. But he said no relief is in sight on the big tax bill.
Trustee Bill Hullander said the new HES facility is on the assessor's books at $6.8 million, and tax officials are required to issue tax bills when no exemption is in place.
He also told members of the County Commission, "I can't forgive taxes, and if you do then this room won't be big enough."
Mr. Hullander said the exemption took place during the 2023-2024 tax year.
The trustee said if the back taxes remain unpaid the HES facility would be on track "to be in the tax sale next June."
He said, "I feel sorry for them, but it is just like the poor people we deal with all the time."
Commissioner Joe Graham said almost all of his district is in the city and covered by the McKamey Animal Center. He said the small part of his district that is unincorporated does not get service from HES.
He said he has sympathy for animals, including feeding a rooster that took up residence in his back yard, but he said he would rather spend the money on school children.
Commissioner Chip Baker said when the new HES facility with a $10 million pricetag was proposed he wondered why the county would have two animal service agencies "a mile apart."
He said at the time he asked local vet Ty Federico if the HES would be willing to talk consolidation. He said he was told yes, "but the next day he said no."