Oak Ridge Today

Council gives schools $250,000, school shutdown avoided

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Bruce Borchers and Mark Watson

During a special meeting Tuesday, Oak Ridge municipal officials agreed to give the city school system an extra $250,000 to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 school shutdown. Pictured above are Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson, who recommended the extra funding on Tuesday. (File photo)

In a short special meeting Tuesday, the Oak Ridge City Council agreed to give the city’s schools $250,000 to allow the system to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 shutdown.

The one-time transfer will come from higher-than-expected sales tax revenues in Roane County.

The vote was 4-1-1. Oak Ridge Mayor Tom Beehan, Mayor Pro Tem Jane Miller, and Council members Chuck Hope and Charlie Hensley voted in favor of the extra funding, which had been recommended by City Manager Mark Watson. [Read more…]

Council approves locations for sewer system tanks, county donates land for one

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Emory Valley Road Sewer System Holding Tank

An earlier draft image of what a sewer system holding tank could look like on Emory Valley Road. (Image courtesy City of Oak Ridge)

CLINTON—The Oak Ridge City Council had already taken steps to move the planned sewer system holding tanks farther back from major roads or make them less visible, and on Monday, the Anderson County Commission agreed to donate a small parcel on Emory Valley Road for one of the tanks.

Oak Ridge officials have said the tanks are needed to help comply with a U.S. Environmental Protection Agency order that requires the city to end all sewer system overflows by September 2015. [Read more…]

Council to consider $250,000 transfer to schools to avoid shutdown

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Oak Ridge City Council

The Oak Ridge City Council will meet in a special session Tuesday evening to consider a one-time $250,000 transfer to the city schools, which could avert a potential loss of millions of dollars in state funding and avoid an Oct. 1 school shutdown.

The Oak Ridge City Council will meet in a special session Tuesday evening to consider a one-time $250,000 transfer to the city schools, which could avert a potential loss of millions of dollars in state funding and avoid an Oct. 1 school shutdown.

The special meeting starts at 5 p.m. Tuesday in the Oak Ridge Municipal Building Courtroom.

Oak Ridge City Manager Mark Watson told Superintendent Bruce Borchers last week that Council had agreed to the special session to resolve the $250,000 shortfall but wanted documentation. Watson asked Borchers to respond by noon Monday. [Read more…]

See the local revenue numbers at center of school funding dispute

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Oak Ridge Schools Maintenance of Effort 2014

The maintenance of effort spreadsheet pictured above is used to determine whether local revenues for Oak Ridge Schools are the same from year to year. This spreadsheet, which includes some budget adjustments, shows a $250,000 shortfall. (Image courtesy Oak Ridge Schools/Karen Gagliano)

Note: This story was updated at 11:35 a.m.

It might be difficult to understand the concerns about Oak Ridge Schools’ funding and the state maintenance of effort test without seeing the local revenue numbers.

So, Oak Ridge Today has posted a copy of a maintenance of effort spreadsheet provided by Karen Gagliano, Oak Ridge Schools business and support services director. This spreadsheet includes budget adjustments that helped reduce the local revenue shortfall from the original $393,000 to a smaller $250,000.

Oak Ridge education officials have asked the city to cover that smaller shortfall to avoid a loss in state funding of $1.87 million per month and avert a school shutdown on Oct. 1. It’s the equivalent of a 2.5-cent property tax rate increase, although it’s too late for a tax increase this year. [Read more…]

Council agrees to special meeting on school shortfall but wants documentation

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Mark Watson

Mark Watson

The Oak Ridge City Council has agreed to meet in a special session next week to try to resolve a $250,000 school funding shortfall that education officials claim could lead to a loss of millions of dollars in state funding and a temporary school shutdown if it’s not resolved by Oct. 1.

But Council members want documentation to accompany the request, Oak Ridge City Manager Mark Watson told Superintendent Bruce Borchers in a Sept. 11 letter. It should include an explanation of why the money is needed, information on decisions made by the Oak Ridge Board of Education to close schools on Oct. 1 if the funding is not obtained, and copies of any formal notice from the Tennessee education commissioner that he has agreed to withhold all of the state funding for Oak Ridge Schools starting in October, the city manager said. [Read more…]

Nothing to report yet on Oak Ridge Schools funding, state official says

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Tennessee officials had little to say on Wednesday about the potential loss of state education funding that Oak Ridge school officials have said could cost the school system $1.87 million per month—and lead to a temporary school shutdown on Oct. 1.

“We are starting to have meetings with various people regarding this situation, but at this point, we don’t have anything to report,” said Kelli Gauthier, communications director for the Tennessee Department of Education. [Read more…]

City board will consider tax incentive, development area for Oak Ridge Mall

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Oak Ridge Mall Redevelopment Area

The Oak Ridge Mall economic development area is pictured above. The map shows a contiguous area that could be affected economically by the proposed development, which only includes the former 60-acre mall property, according to a city consultant. (Image courtesy City of Oak Ridge)

A city board this month will consider a financing arrangement that could be worth up to $10 million and allow a North Carolina company to use new property tax revenues generated at a redeveloped Oak Ridge Mall to be used for site development, possibly including for roads, stoplights, and demolition work.

Many of the details aren’t available yet, including the precise amount of the proposed tax increment financing, or TIF, agreement and the length of time it could be in effect. The details will be discussed at a Sept. 26 meeting of the Oak Ridge Industrial Development Board, when members will consider an economic impact plan, city consultant Ray Evans said.

The economic development area could include about 90 acres. It would include the 60-acre mall and could include an apartment complex and museum, movie theater and pizza shop, real estate firm and hotel, and several busy stores on Oak Ridge Turnpike—properties that could benefit from the TIF, Evans said.

[Read more…]

School officials say millions in state funding at risk, could close schools Oct. 1

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Bruce Borchers and Mark Watson

Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson have had a series of meetings concerning the school system’s failure to pass a state maintenance of effort test, and a possible resolution of a $250,000 shortfall to avoid a potential loss in state funding of up to $1.87 million per month.

Schools want city to cover $250,000 shortfall, could require 2.5-cent tax increase

It’s a high-stakes battle between the city and the schools, with a potential loss of up to $1.87 million per month in state funding—and a possible shutdown of the school system on Oct. 1.

School officials said the Oak Ridge system has failed a state maintenance of effort test that requires local funding to remain at least the same from year to year. After some budget adjustments, there is a $250,000 shortfall, school officials said, and they want the city to cover it. It’s the equivalent of a 2.5-cent property tax rate increase.

“Unfortunately, we’re just in the position to ask the city to help us,” Oak Ridge Superintendent Bruce Borchers said Thursday. “They’re going to have to find that $250,000.” [Read more…]

Guest column: Oak Ridge Schools explain funding issues, maintenance of effort test

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In the spirit of collaboration, the Oak Ridge Schools would like to share pertinent information in regard to the current maintenance of effort (MOE) issue that faces our community. Tennessee law requires that local governments fund local school systems by at least the same amount each year.

In August, Oak Ridge Schools were notified by the State Department of Education, Office of Local Finance, about the failure to pass the MOE test. Failure to correct this problem by Oct. 1 will result in a loss of Basic Education Program (BEP) funding at a rate of $1.87 million per month.

The only possible resolution to satisfy state law is an increase in local funding from the city general fund in the amount of $250,000. This budget amendment would need to be approved in two readings by City Council, and two readings by the Board of Education.

Numerous meetings have occurred between city and schools staff. In addition, the “high school debt/potential failure of MOE” item has been an ongoing discussion for the past two years. To date, no meetings have been scheduled by the City Council to make the necessary budget amendments. [Read more…]

Guest column: The sky is not falling on school funding, city manager says

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Mark Watson

Mark Watson

The Sky is NOT Falling!

It is not often that a city manager takes the time to write an editorial, but I think this is one of those times.

These past two weeks, I have been working with new School Superintendent Bruce Borchers in reviewing a notice he received from the State of Tennessee that the financial formulas for required school funding have not been met by Oak Ridge. This principle is known as maintenance of effort.

Oak Ridge is one of the few school systems in Tennessee recognized as a city system. The school system is a “department” of the city for budgetary purposes.

Our school system has maintained itself through the years as one of the premier school systems in the state, and citizens here pay much more than the minimum requirements for school maintenance found elsewhere. However, with ups and downs of sales taxes and reductions in some state funding categories, the school and the city have found themselves calculated as coming up short in the statewide formula. This is the problem that Superintendent Borchers and myself find ourselves working together to resolve. With a solution, we will take that to our respective City Council and School Board. [Read more…]

Council approves water, sewer rate increases

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Oak Ridge City Council

The Oak Ridge City Council on Monday approved water and sewer rate increases that will take effect January 2014 and January 2015. (File photo)

There was much opposition online, and in phone calls to city hall, but few public objections to back-to-back utility rate increases at a Monday night Oak Ridge City Council meeting.

The Council voted in two separate 6-1 votes to raise water and sewer rates in January 2014 and again in January 2015. The increases range from 8 percent to 15 percent.

The new rate hikes, which will be considered on second and final reading in October, would result in water bills that could go up by a minimum of $1.35 per month in January 2014 and then another $1.19 per month in 2015. Sewer bills would increase a minimum of $2.78 per month next year and then rise another $2.13 per month the following year. [Read more…]

Buying three new fire trucks at once could save money, help training, repairs, chief says

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Oak Ridge Fire Department New Truck

An example of what the new Oak Ridge Fire Department engines could look like. (Photos courtesy ORFD)

Buying three new fire trucks at the same time could save money and make repairs and training easier, a city official said.

Firefighters would only have to train on one truck, rather than on three different versions, and mechanics would only have to learn to fix one, Oak Ridge Fire Department Chief Darryl Kerley told City Council members last week. When ordering parts, mechanics could order multiple replacements and have backups available.

The City Council will consider whether to buy the new fire engines during a 7 p.m. meeting on Monday, Sept. 9. The three new fire engines would replace trucks that are 15 years old and each have about 150,000 miles on them. Those vehicles would be used as reserves. [Read more…]