Council rejects funding for sinkhole repairs, tax rate reduction; approves Habitat property transfer

The Oak Ridge City Council on Tuesday rejected a request to use red light camera money to reimburse the school system $36,000 for sinkhole repairs made in April at the Oak Ridge High School soccer field.

Council also agreed to transfer a small burned-out lot on Hillside Road to Habitat for Humanity of Anderson County and rejected a proposal to lower the property tax rate by one cent.

Asked about the sinkhole repair reimbursement on Tuesday, Oak Ridge Schools Interim Superintendent Bob Smallridge said the school system, which expects revenues to fall by about $1 million and is cutting 18 positions, has a tight budget.

But the city also has a tight budget, Oak Ridge City Council member Anne Garcia Garland retorted.

Several Council members objected to the reimbursement request, questioning the emergency nature of the repairs, expressing concern about the use of the red light camera money, and alleging the school system hasn’t previously spent all the capital maintenance money it has received from the city.

Smallridge said the soccer field contains geothermal wells, which help to heat and cool the high school, and that made the sinkhole repairs more complicated and more expensive than they would have been otherwise.

Oak Ridge Mayor Pro Tem Jane Miller said if the Council agreed to reimburse the school system this time, the school board could come back “again and again.”

School officials acknowledged that that was the case. They said their capital maintenance funding from the city has been cut from $750,000 to $250,000, and they had been instructed to seek funding from the city for emergency repairs.

Oak Ridge City Manager Mark Watson had recommended using the red light camera money for the sinkhole repairs since the 13-foot hole affected student safety. The red light camera money has been designated for pedestrian and bicycle safety improvements.

Voting for the repair reimbursement were Oak Ridge City Council members Charlie Hensley, Chuck Hope, and David Mosby.

Voting against it were Miller, Oak Ridge Mayor Tom Beehan, and City Council members Trina Baughn and Anne Garcia Garland.

A home on the lot transferred to Habitat for Humanity of Anderson County was destroyed in a February fire. The city purchased the property at 148 Hillside Road for about $11,000, and Habitat hopes to build a new home there for a single mother with four children by September, or the nonprofit organization could lose a grant.

Municipal officials said the project would eliminate blight, save city money on demolition and cleanup work, and add a new home to the property tax rolls.

Council members who questioned the transfer to HFHAC said the city has plenty of property and is giving away land, and they said Oak Ridge lacks a good policy governing land acquisitions and donations, including to determine who will choose the properties and how much the city will spend.

Oak Ridge City Council member Charlie Hensley called some of the debate ridiculous.

“We have an opportunity for a private-public partnership with a very reputable organization,” Hensley said. The city has two choices: leave a burned-out home, or have a new one by September, he said.

“It improves the whole neighborhood,” Hensley said.

Still, Oak Ridge City Council member Chuck Hope said he wanted more information on the specific costs of the Hillside Road project and the amount of time it would take to recoup the city’s investment.

Jennifer Sheehan, interim executive director of Habitat for Humanity of Anderson County, said the home has to be built on donated land under grant requirements through the Federal Home Loan Bank of Cincinnati. She estimated the city could recoup its investment in about 15 years.

Oak Ridge acquired the property through the Housing and Urban Development Economic Development Initiative.

Voting for the property transfer to Habitat were Beehan, Hensley, Hope, and Miller.

Voting against it were Baughn and Garcia Garland.

Oak Ridge City Council member David Mosby abstained.

As previously reported, the City Council approved a budget on second and final reading on Tuesday that does not raise raise the property tax rate in the fiscal year that starts July 1. It provides $50,000 more for the Oak Ridge Chamber of Commerce than Oak Ridge City Manager Mark Watson had requested, and it gives city employees a 1 percent pay raise.

Council members rejected a proposal from Baughn to reduce the property tax rate by one penny to $2.38 per $100 of assessed value, which would have cut city revenues by about $90,000.

“At this time, I don’t think I can support a tax reduction,” Miller said.

Voting in favor of the cut were Baughn and Hope. Voting against it were Beehan, Hensley, Miller, and Mosby.

Garcia Garland abstained.

The vote for the budget itself was 6-1. Baughn cast the lone “no” vote.