Oak Ridge Today

Guest column: Won’t support tax increase, urges residents to prevent further waste

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Trina Baughn

Trina Baughn

Sixteen years ago, Partners for Progress successfully lobbied the city to spend over $15 million of your (the taxpayer) money to launch a major development on the West End of Oak Ridge. The promises were enough to make people starry eyed. There was to be a picturesque subdivision of nearly 4,000 homes along with an industrial complex that, when all was said and done, would produce 17,000 jobs, $1 billion in payroll, and nearly $13 million in additional annual property taxes.

Three years ago, many of the same folks behind Partners for Progress began a similar PR campaign touting the sale and redevelopment of the mall. “More shopping choices are coming!” they proclaimed. To date, the city has approved the use of $1.5 million of your money for infrastructure costs and a $13 million TIF (tax increment financing), which will  suppress property tax revenue at current levels for the next 30 years. In other words, no matter what happens, the 64 acres will continue, as it has for the last decade, to produce only 10 percent of its original value because any increases will be used to repay the TIF loan. Developers and city officials claim that the project will produce $1 million (or 20 percent) in additional sales tax revenue to the city, though, historically, the national retail sales growth rate range is between -11.51 percent to +11.18 percent. Even if we find a way around the notoriously stringent Wal-Mart non-compete covenants and actually bring in real retail, it is absolutely impossible to expect these projections to materialize, since, even in the best of times, we’ve not seen half that level of growth. [Read more…]

Guest column: Afterthoughts on the 2015 budget

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Trina Baughn

Trina Baughn

A lot of incomplete, and sometimes inaccurate, information has been disseminated to the public regarding the Fiscal Year 2015 city and school budgets. Such inconsistencies compound citizen frustrations as they begin to feel the impact of both bodies’ decisions. I would like to offer some clarification along with supporting resources, which will also be hyperlinked within my website, trinabaughn.com.

First, let me address the claim that council is “not supportive” of our schools. I assure you that each and every one of us actively supports the education of Oak Ridge children with both our private and public contributions of time and money.

Furthermore, when factoring in debt payments, council allocates roughly half of all property taxes toward our schools. In fact, there are only four other communities in all of the state that out fund Oak Ridge at the local level. And even though council did not increase the tax rate this year, we did increase funding to the schools by over $500,000 due to the high school mortgage obligation shift. And contrary to claims that funding levels have been flat or declined, a simple comparison from 2005–2014 shows that total school spending has increased from $42.3 million to $55.5 million.

Second, both city and school representatives are guilty of understating their employees’ history of pay increases. City employees have received pay raises four out of the last five years. Teachers, too, have received raises every year of the last five years. The range and form of those raises is worthy of further discussion, and I intend on broaching the subject in our next joint Council/BOE meeting. [Read more…]

Guest column: 2015 school budget considerations

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Trina Baughn

Trina Baughn

I have reviewed your budget proposals and would like to share my thoughts for consideration in your final deliberations. I should clarify that because our charter forbids City Council, as a body, from “modifying or deleting any item in school estimates,” my statements do not reflect the opinions of my fellow council members.

As you know, we are blessed to live in a community that actively and generously supports education. Not only do we rank fifth in the state for our level of local funding (54 percent), but, at $12,075 per pupil, we continue to outspend the state average of $9,293 and the national average of $11,068.

Our generosity, however, has taken a toll that we can no longer ignore. Having the third highest tax rate ($4.74) in the area has been counterproductive to attracting new residents. One need only look to the phenomenal growth in Farragut, whose property tax rate is less than half of ours ($2.32), to appreciate the negative impact of our high taxes. [Read more…]

Guest column: Baughn’s budget recommendations to city manager

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Trina Baughn

Trina Baughn

The following are my 2015 budget recommendations to the city manager:

Mr. Watson,

I commend you for your willingness to reduce spending in your formulation of the Fiscal Year 2015 city budget. This approach is essential to making Oak Ridge more attractive to prospective residents and businesses.

As you know, Oak Ridge has the third highest city/county property tax rate in East Tennessee at $4.74. What you may not realize is this year, the city of Knoxville dropped below us in these rankings with a combined city/county rate of $4.71 while the majority of Knox Countians still pay less than half of our rate at $2.32.

In response to your request for council suggestions, I encourage you to set a very obtainable goal. That is, reduce our total budget by .05 percent ($90,000) and return those monies to the taxpayers in the amount of a one-cent tax rate reduction. The following are my suggestions for accomplishing this goal. [Read more…]

Guest column: School safety update

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Trina Baughn

Trina Baughn

Since the signing of the Memorandum of Understanding (MOU) between the Oak Ridge Schools and the Oak Ridge Police Department (ORPD) last August, a number of significant safety improvements have occurred within our schools including physical security upgrades, leadership adjustments, and increased police presence.

As you may know, this time last year, we had only one School Resource Officer (SRO) covering our entire school district. Now we have two full time SROs, two Support Services Unit (SSU) officers manning satellite offices, and the Adopt-a-Cop program, which provides officer time in all of our schools via daily check-ins. A third satellite office is in the works as ORPD Chief Jim Akagi and Superintendent Bruce Borchers are presently working on stationing an SSU officer at Robertsville Middle School.

Chief Akagi recently invited me to join our SROs on a walk-along at the high school to personally observe the impact of these changes. He also encouraged me to tag along with our S.W.A.T. team during a threat assessment exercise. I took him up on both offers and, as a result, am sharing what I learned. [Read more…]

Guest column: The Oak Ridge High School debt chronicles

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Trina Baughn

Trina Baughn

The Oak Ridge High School Debt Chronicles—How a $40 Million Project Will Cost Taxpayers Over $126 Million (So Far) 

It appears that the nearly three-year long debate between the Oak Ridge City Council and the Board of Education (BOE) over who owes what on the high school renovation project—the single largest financial expenditure that this city has ever made—is about to be resolved once and for all (or so some hope). To many, this will provide a welcomed relief. For all, it will once again extend and increase a debt obligation far beyond what anyone ever imagined.

Just over one week after the initial public revealing, council will vote on a resolution to end the debate on the high school mortgage issue. The root problem that this resolution will address is not ambiguity in the 2004 referendum or in any “gentlemen’s agreements.” No, the reason that this resolution is necessary, according to the fifth “Whereas,” is “changing community economics and increasing educational needs.”  The need for this resolution, which will violate the original understanding and intent of the 2004 referendum, boils down to an implied need by the Oak Ridge schools for more money.

If passed, this resolution will allow the BOE to retain the portion of the half-cent sales tax revenues collected outside of the City of Oak Ridge and will accomplish the following: [Read more…]

Guest column: A successful Oak Ridge Mall project

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Trina Baughn

Trina Baughn

Note: This is a copy of a Nov. 14 e-mail from Oak Ridge City Council member Trina Baughn to Anderson County Commissioners and Mayor Terry Frank.

Honorable Mayor Frank and County Commissioners:

Like you and all of our citizens, I recognize the need for the successful redevelopment of the Oak Ridge Mall property. My research, to include discussions with various city officials and partners from their past projects, has me convinced that if anyone can help us finally turn the mall around, it is Crosland Southeast.

The generation of added sales tax revenue from new retail is our highest priority in this venture. Not only do we desire more shopping options, but the financial health of our community is highly dependent upon new sources of revenue.

No one can guarantee that the anticipated sales tax will materialize nor is it realistic to expect such an assurance. However, there is one guarantee contained within this plan. Once demolition has begun, the terms of the tax increment financing (TIF) will be permanently secured, regardless of whether or not anything is built. The end result will lock in a 20-year freeze on the property tax collected by the city and the county. [Read more…]

Guest column: Council member proposes alternatives to raising water, sewer rates

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Trina Baughn

Trina Baughn

On Sept. 9, your Oak Ridge City Council will likely vote to approve additional water and sewer rate increases. When combined with the last two increases, the average user’s bill will have spiked 62 percent in just 34 months. Subsequently, should council adopt the fully proposed schedule through 2019, most residents and businesses will be paying double what they were paying prior to the initial increase imposed in May 2012.

These increases are to pay for the $33 million of debt that the city incurred in the last two years in addition to a projected $15 million more that Public Works says is still needed. We are continuing to borrow without limits and without regard for your ability to pay such astronomical bills.

Much of this debt could have been reduced or avoided all together had your city government taken the U.S. Environmental Protection Agency up on the many opportunities they gave us to make corrections. (See my Feb. 24 post at trinabaughn.com entitled, “The Rest of the EPA Mandate Story.”) Unfortunately, we’ve screwed up so many times that we were too fearful to pursue leniencies that are now being afforded to many cities across the nation. So, while others have 20-25 years to comply and can spread out costs to minimize the hit their ratepayers will take, Oak Ridge has just five years and is forcing the entire burden on its residents and businesses. [Read more…]

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

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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…]

Guest column: Strategizing a path to prosperity

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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…]

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

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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…]

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

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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…]