Watson’s budget proposes same tax rate, less funding for Chamber, ORCVB

The budget proposed by Oak Ridge City Manager Mark Watson on Monday would not raise property taxes, but it would slash funding for the Chamber of Commerce, and Convention and Visitors Bureau.

The ORCVB funding could be cut from $410,000 to $300,000, Watson told City Council members during a Monday night work session. The city needs “more heads in beds,” more people staying here and more events, Watson said.

The chamber’s contract with the city is now worth about $260,000. The city could instead use $125,000 for funding of services and projects—sending city officials on recruiting trips, for example—and spend $55,000 on memberships in organizations such as the Roane Alliance and Anderson County Economic Development Association.

Watson has proposed using $84,000 for contracts for economic development consultants. The city now has two of them, Ray Evans and Steve Jones.

Watson has proposed a 1 percent cost-of-living pay raise.

The property tax rate would stay at $2.39 per $100 of assessed value.

Watson said the city has lost about $250,000 from re-appraisals, including at Rarity Ridge, as well as about $100,000 from the reduced grocery tax rate. Revenues are flat or limited for Fiscal Year 2014, which begins July 1, but they could pick up toward the end of next year, after new projects such as the Kroger Marketplace are operating, Watson said.

“We have hit a very slow period until our new projects are online,” he said. “It’s a very, very, very tight budget.”

Council will consider the budget on first reading on Monday, May 13, and on second and final reading on Tuesday, May 28.

The Oak Ridge Schools budget could be approved during a special Oak Ridge Board of Education meeting on May 23. That budget could then be presented to city officials at the May 28 City Council meeting.

The city’s budget has $119 million in all funds, except schools. The general fund budget is $20 million.