Council considers budget amendments, raises spending for Chamber of Commerce

May 17, 2013 By 5 Comments
Oak Ridge City Council Budget Meeting

The Oak Ridge City Council considers a series of potential budget amendments during a special meeting Thursday.

They were scheduled to consider more than a dozen budget amendments Thursday, but Oak Ridge City Council members approved only one that could immediately affect spending. It was a recommendation to spend another $50,000 on the Oak Ridge Chamber of Commerce contract.

The proposal will be considered by the City Council during the second and final budget reading on May 28. The new fiscal year starts July 1.

During a special four-hour meeting Thursday, Council rejected other proposals to increase spending on capital maintenance by $250,000 and cut spending on travel. Members asked for further study on a recommendation to consider relocating Fire Station No. 2 in east Oak Ridge to Melton Lake Drive. [Read more...]

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Guest column: Baughn lists budget-cutting proposals to reduce tax rate

May 16, 2013 By 2 Comments
Trina Baughn

Trina Baughn

During our May 13 and May 28 meetings, the Oak Ridge City Council will determine your property tax rate for the next year via our annual budget. Our decision will directly affect your personal finances. Of greater consequence, however, we will establish our city’s competitive position.

Currently, Oak Ridge has the third-highest property tax rate in East Tennessee at $2.39 when you add in the Anderson County rate of $2.35. Each penny of our rate equals approximately $90,000 of spending. We have a tremendous opportunity to make Oak Ridge more competitive and attractive to prospective residents and businesses without sacrificing our quality of life.

In addition to increasing our revenues (I’ve suggested converting select city-owned assets into taxable properties, eliminating tax abatements, and negotiating voluntary payment-in-lieu-of-taxes agreements), we must ensure the highest and best use of each and every penny you entrust to us.

During our deliberations, I will make the following motions to immediately reduce our tax rate and/or improve our marketability to outsiders: [Read more...]

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Council to consider budget amendments in special meeting Thursday

May 15, 2013 By Leave a Comment
Trina Baughn

Trina Baughn

Chuck Hope

Chuck Hope

The Oak Ridge City Council could consider a dozen budget amendments Thursday evening that were postponed on Monday, a series of proposals that could increase spending in some areas or cut it in others.

Nine of the amendments have been proposed by Oak Ridge City Council member Trina Baughn, and three were recommended by Council member Chuck Hope.

Baughn’s proposals could reduce spending on municipal travel by 20 percent, the Oak Ridge Public Library by roughly $950,000, and Recreation and Parks Department funding by 10 percent, among other things.

Hope’s proposals would add $500,000 funding in the city’s general fund for spending in three areas: economic development, capital maintenance, and to study the relocation of Fire Station No. 2 to Melton Lake Drive. [Read more...]

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Council members clash over Baughn’s budget-cutting proposals

May 14, 2013 By 50 Comments
Trina Baughn

Trina Baughn

Charlie Hensley

Charlie Hensley

Several Oak Ridge City Council members clashed on Monday as they debated a few last-minute proposals to reduce city spending in some areas and increase it in others.

Most of the debate centered on proposals submitted by Oak Ridge City Council member Trina Baughn. She asked the City Council to consider nine budget-cutting proposals and consider selling the Centennial Golf Course and the property used by the Oak Ridge Chamber of Commerce, among other things.

Baughn said she represents the citizens of Oak Ridge and is trying to find the highest and best use of city-owned property. She has previously said she would like to lower the property tax rate and has advocated for a more limited government. [Read more...]

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Council approves no-tax-increase budget that could be amended

May 13, 2013 By 12 Comments
Mark Watson

Mark Watson

The Oak Ridge City Council on Monday gave initial approval to a budget that does not raise property taxes but could be amended.

Council members Trina Baughn and Chuck Hope proposed amendments that could be considered during a special meeting before second and final reading of the budget on May 28.

The budget presented by City Manager Mark Watson on Monday would give city employees a 1 percent pay raise, cut funding for the Oak Ridge Convention and Visitors Bureau, and change the city’s contract with the Chamber of Commerce. [Read more...]

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Baughn request: Sell golf course, Chamber property; request payments from tax-exempt organizations

May 12, 2013 By 14 Comments
Trina Baughn

Trina Baughn

Note: This story was updated at 11:38 p.m.

Oak Ridge City Council member Trina Baughn has proposed that the city sell Centennial Golf Course, and terminate the lease agreement with the Chamber of Commerce and sell the property.

Those proposals would convert city-owned assets into taxable properties, Baughn said.

Baughn has also asked the seven-member Council to consider setting up a team that could negotiate voluntary payment-in-lieu-of-taxes agreements with tax-exempt organizations that “are most able to afford paying for city services that are currently paid for by the taxpayer.” Those organizations could include Methodist Medical Center of Oak Ridge, Oak Ridge Utility District, Tech 2020, Roane State Community College, and the University of Tennessee, Baughn said in a May 5 e-mail to Oak Ridge City Manager Mark Watson and City Clerk Diana Stanley. [Read more...]

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Guest column: Strategizing a path to prosperity

May 6, 2013 By 25 Comments
Trina Baughn

Trina Baughn

The problem

This month, the Oak Ridge City Council will establish your property tax rate for 2014 via the approval of our annual city budget. And though it appears that taxes will remain flat, our excessive spending levels are unsustainable and continue to hinder our ability to compete with surrounding communities.

In spite of all the new developments happening as of late, if council approves the budget as proposed, residents and businesses will continue to feel the financial crunch for quite some time. Not only will we retain one of the highest property tax rates in the state, but we’ll also retain one of the largest per capita debt levels in the region. (At nearly $7,000 per person, we have more than four times that of Knox County residents and more than seven times that of Knoxville residents). A dozen more chicken places and grocery store relocations won’t make a dent in the average Oak Ridger’s bills.

If we are to make any kind of progress, we need a strategy that aims to increase revenue while reducing expenditures. This column will focus on increasing our revenue base. I will address budgetary inefficiencies and waste in a follow-up piece next week. [Read more...]

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Council approves Protomet tax break, ends recycling rewards program

April 9, 2013 By 13 Comments

A five-year, 100 percent tax break for parts manufacturer Protomet was approved in a 4-1 vote by the Oak Ridge City Council on Monday.

The tax break could be used to help Protomet more than double the size of its 15,000-square-foot plant in the Bethel Valley Industrial Park, consolidate operations with a Blount County facility, and add 20-30 workers.

Also Monday, the City Council agreed in a voice vote, with no objections, to end the RecycleBank Reward Program and determine later what to do with the savings of $0.84 per household per month. The savings are expected to add up to about $124,000 each year. [Read more...]

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Guest column: ORCVB, Chamber funding should be reduced 50-100 percent, festivals outsourced

March 28, 2013 By 31 Comments

Note: This is an edited version of a letter submitted by Oak Ridge City Council member Trina Baughn at a March 25 work session.

Mr. Watson and Fellow Council Members:

At our last retreat, I proposed that we each share our specific positions regarding the Economic Diversification Fund. A successful economic development strategy must focus on both retaining and increasing business and residents with a primary goal of establishing a more competitive financial position. For Oak Ridge, that means becoming a more affordable place to live and work. With that in mind, I present my point-by-point response to Mr. Watson’s Eight Point Economic Statement:

1) I support the city manager’s proposal to eliminate this fund and distribute the costs within the general fund if that distribution includes some reduction and/or reallocation of funds to the direct benefit of our taxpayers. Of the $1.4 million we currently spend, I recommend that we attribute half toward a reduction in the property tax rate (the equivalent of 7.7 cents). Such a reduction will benefit every existing and future business and home owner. [Read more...]

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Council approves $18 million in borrowing for sewer system repairs

February 25, 2013 By 28 Comments
Trina Baughn

Trina Baughn

After more than an hour of discussion, the Oak Ridge City Council on Monday approved the borrowing of $18 million in low-interest state loans to help pay for a $23 million project to fix the municipal sewer system.

Council voted 6-1 to borrow the money at a 1.23 percent interest rate through the State Revolving Fund program, which is administered by the Tennessee Department of Environment and Conservation.

The work is being done to comply with a U.S. Environmental Protection Agency order that requires Oak Ridge to repair all sewer system overflows by Sept. 28, 2015.

[Read more...]

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Guest column: Researches EPA sewer order, says more work needed

February 25, 2013 By 1 Comment

Last month, Oak Ridgers were hit with a water/sewer rate increase for the second time in nine months to pay for $15 million worth of debt that you were told (incorrectly) was issued to cover a U.S. Environmental Protection Agency mandate. On Monday night, City Council is preparing to approve another $18 million in debt for the same cause, which will result in subsequent rate increases.

A statement I received this weekend from one resident sums up the frustrations that so many of you have been sharing with me: “Utility rates (water, sewer, electrical, trash pickup, etc.) keep going up; the city and county property ‘double’ taxation is simply too much. It so happens that our group of friends and us discuss the idea of moving to other less costly vicinities nearby more often than before. We would strongly suggest that our city government start budgeting our expenditures with the money we have.”

[Read more...]

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Guest column: Changing the economic development game in Oak Ridge

February 5, 2013 By 14 Comments

There’s no nice way to spin it: The results of our city’s bad decisions for the past decade are catching up with us.

In addition to having high debt and property taxes, our sales tax revenues continue to decline, we are exporting more than $727 million per year in U.S. Department of Energy payroll (1), and we have a comparatively stagnant population growth. Even with all the new restaurants opening, these projects won’t fully replace the revenue we’ve lost from the countless businesses that have closed up shop or left town for greener pastures.

Continuing down this path is not an option. Thankfully, our city manager understands this and wants to strategize a more competitive position for Oak Ridge. He is proposing that we change our approach to economic development (2) by finding other uses for the $1-2 million we’ve been spending annually on nearly 20 different external organizations like the Oak Ridge Chamber of Commerce.

[Read more...]

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