Oak Ridge Today

Property tax bills sent out, payments due Oct. 31

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Oak Ridge property tax bills were sent out, and payments are due without penalty by October 31.

The tax statements should have been received by September 1, the City of Oak Ridge said.

The city received the certified tax rate—or tax-neutral rate—from Tennessee this summer and adopted the $2.52 rate without changing it. That’s in contrast to other surrounding city and county governments, including Anderson and Roane counties.

Problems in Roane County’s re-assessments delayed the city from setting the tax rate and sending out tax bills when expected. But those problems were resolved as of August 3.

The new tax-neutral rate went up in Oak Ridge because total property assessments went down in Anderson and Roane counties. The tax-neutral rate is meant to bring in the same amount of revenue after a five-year reappraisal as before. [Read more…]

County to consider budget, tax rate again on Aug. 13

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Anderson County Teachers at County Commission

Roughly three-quarters of those attending the budget deliberations at Anderson County Commission wore red—”Red for Public Ed”—on Monday, July 20, 2015. (Photo by John Huotari/Oak Ridge Today)

 

Anderson County commissioners have called another special meeting—this one on Thursday, August 13—to consider the county budget and tax rate. At stake are pay raises for county employees and educators and more than $1 million in new money for schools in Anderson County, Clinton, and Oak Ridge.

County commissioners approved a budget supported by a 10-cent property tax rate increase during a regular meeting on Monday, July 20. Eight cents of that increase was meant to provide most of the money needed for 2 percent pay raises for teachers and staff in Anderson County Schools. Anderson County Schools expected to receive another $700,000 or so from the tax rate increase, while Oak Ridge Schools anticipated an extra $423,000 and Clinton City Schools were projected to get another $134,000.

The other two cents approved during the July 20 meeting was for 2 percent pay raises for Anderson County employees, with the exception of county commissioners and other elected officials.

But in a follow-up special meeting on Thursday, July 30, the Anderson County Commission rejected the tax increase when it came time to officially adopt the new tax rate for the fiscal year that began July 1. For now, county and school officials are continuing to operate under last year’s spending levels. [Read more…]

New tax revenues plus cuts will fund pay raises in Anderson schools

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Rachel Minardo at Anderson County Commission

Rachel Minardo, president of the Anderson County Education Association, had advocated for a 4 percent pay raise for county school teachers and staff. Above, she talks to the 16-member Anderson County Commission in Clinton on Monday, July 20, 2015. (Photo by John Huotari/Oak Ridge Today)

 

CLINTON—New tax revenues of about $700,000 plus about $100,000 in cuts will allow Anderson County Schools to fund 2 percent pay raises for teachers and staff, the county budget director said Wednesday.

The Anderson County Commission approved a 10-cent increase in the property tax rate on Monday, July 20, and eight cents of that was for schools. Anderson County Schools will get about $700,000 from the tax rate increase, but at last week’s meeting, school officials said they still had to come up with another $100,000 or so to fund the 2 percent raises.

Chris Phillips, Anderson County accounts and budget director, said the school system was able to do that in a revised budget submitted to the county government on Wednesday. [Read more…]

Tax rate increases, changes in AC, Clinton, Oliver Springs, RC, Rocky Top

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Increases in the property tax rate have been approved or are anticipated in budgets that have already passed in Anderson County, Clinton, Oliver Springs, Roane County, and Rocky Top.

Those increases are in addition to the increases already expected because of a drop in overall property assessments in Anderson and Roane counties. The 4 percent drop in Anderson County and 3.47 percent decline in Roane County mean the tax-neutral rate—the rate meant to bring in the same amount of revenues after a reappraisal as before—goes up.

The highest tax increase, which includes a 6-cent change in the certified tax rate after five-year reappraisals, is 40 cents. That’s in Rocky Top, where the new tax rate is $2 per $100 of assessed value.

The lowest so far is in Anderson County, where county commissioners have approved a 10-cent increase for 2 percent pay raises for school and county employees. That’s in addition to the roughly 16-cent increase in the tax-neutral, or certified, tax rate.

Oak Ridge will be the last of those half-dozen governments to consider any changes to the tax-neutral rate. In Oak Ridge, the rate has been calculated at $2.52, up 13 cents from the current $2.39.

Oak Ridge could also be the only one of those half-dozen governments that doesn’t add a tax rate increase to this year’s higher tax-neutral rate. So far, it appears that a majority of Oak Ridge City Council members could support the $2.52 rate, although two Council members, Trina Baughn and Rick Chinn, have advocated for a reduction, possibly by two cents to $2.50.

Here is information on the increases or potential increases: [Read more…]

Oak Ridge may not increase tax rate above reappraisal change

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Oak Ridge City Council 2014

The Oak Ridge City Council is pictured above in 2014. (Photo courtesy City of Oak Ridge)

 

Property tax rates are already expected to go up in local cities and counties because of an unprecedented drop in property assessments.

And additional increases have been approved or are anticipated in budgets that have already passed in Anderson County, Clinton, Oliver Springs, Roane County, and Rocky Top.

Oak Ridge could be the exception. The city could see an increase in the certified tax rate (state officials call it a tax-neutral rate) from $2.39 per $100 of assessed value to $2.52.

So far, no Oak Ridge City Council members have publicly endorsed raising taxes beyond the change in the tax-neutral rate required by the five-year reappraisals completed this year.

Four City Council members, a majority of the seven-member body, said during a budget work session on Tuesday that they will support the $2.52 tax-neutral rate or that it’s important to stay at that rate for now, until they have more information. [Read more…]

AC Commission approves 10-cent tax rate increase for pay raises

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Rachel Minardo at Anderson County Commission

Rachel Minardo, president of the Anderson County Education Association, and others have advocated for a 4 percent pay raise for county school teachers and staff. Above, Minardo talks to the 16-member Anderson County Commission in Clinton on Monday. (Photo by John Huotari/Oak Ridge Today)

 

Note: This story was last updated at 4 p.m.

CLINTON—After rejecting a few other proposals, Anderson County commissioners on Monday approved a 10-cent property tax rate increase to fund 2 percent pay raises for county employees and school teachers and staff.

The vote for the tax rate increase was 9-5-1.

Eight cents of the 10-cent increase is for Anderson County Schools, and the other two cents will cover the pay raise for county employees, with the exception of elected officials and county commissioners.

Earlier in the five-hour meeting, commissioners rejected proposals to:

  • raise the property tax rate by 10 cents for a 2 percent pay raise for the schools,
  • raise the tax rate by 5 cents for a 1 percent raise,
  • approve the school budget as submitted with no tax increase,
  • raise the property tax rate by 7.5 cents for the schools, and
  • use $1.7 million from the fund balance for a one-time bonus for schools in Anderson County, Oak Ridge, and Clinton.

Teachers said they haven’t had a pay raise since 2012, and they last received a bonus in 2013 and that was $200. They have said all the surrounding school districts except Campbell County pay more, and they want to be able to recruit and retain good teachers—and not be a training ground for other districts. [Read more…]

Guest column: All AC communities decreased in assessed value, which is unprecedented

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Note: This is a copy of a letter from Leonard A. Abbatiello, Anderson County/Oak Ridge Equalization Board representative, to Oak Ridge Mayor Warren Gooch and City Council regarding the 2015 Board of Equalization results.

Dear Honorable Mayor Gooch and Members of City Council:

I currently serve as the Oak Ridge representative on the Anderson County Board of Equalization.

The Anderson County Board of Equalization has completed its task of appraisal hearings for 2015. Attached is our report which has been sent to the Tennessee State Appraisal Office. It is the first year ever when there has been a decrease in the total appraisal base, Anderson County’s first in history.

This is also the lightest Board workload in recent history. This year, we evaluated 208 cases totaling $125,886,000 of appraised value, reducing their total to $95,781,000. Commercial appeals are now dominating Anderson County appeals, with the requests for changes in commercial exceeding residential values by 5.6 times. Some commercial cases are expected to also appeal to the state for additional relief. [Read more…]

Anderson County teachers disappointed as commissioners delay vote on budget, pay raise

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Anderson County Budget Committee and Rachel Minardo, Chris Phillips, and Connie Aytes

Rachel Minardo, right, a first-grade teacher at Claxton Elementary School and president of the Anderson County Education Association, asks for a 4 percent pay raise for county teachers and school staff during a May 28 public hearing on the county budget. Also pictured are Chris Phillips, left, director of accounts and budgets for Anderson County, and Connie Aytes, deputy budget director.

 

CLINTON—Anderson County teachers were disappointed as they watched county commissioners postpone a vote on the budget and a possible 4 percent pay raise on Tuesday.

But they’ll be back on Monday, June 29, for the next meeting of the Anderson County Commission, said Rachel Minardo, a first-grade teacher at Claxton Elementary School and president of the Anderson County Education Association.

It’s not clear if the 16-member Commission will agree to fund the school system’s request for a 4 percent raise for all teachers and staff. That’s what the Anderson County Board of Education unanimously recommended last month. The request could require the equivalent of an 18-cent increase in the property tax rate.

But during debate over proposed pay raises for some county employees on Tuesday, several commissioners said they want to be consistent and fair to all workers. [Read more…]

City proposes one-cent tax rate increase; schools’ request would add seven

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Mark Watson

Mark Watson

Note: This story was last updated at 3:18 a.m. June 2.

The budget proposed by the Oak Ridge city staff on Monday includes a one-cent increase in the property tax rate. It would help maintain city services and allow for a 2 percent pay raise for city employees, Oak Ridge City Manager Mark Watson told City Council members.

Meanwhile, the budget proposed by Oak Ridge Schools asks for the equivalent of a seven-cent tax increase. It would help cover a deficit and add money for salaries and staff, including a 3 percent pay raise. That budget has already been approved by the Oak Ridge Board of Education.

The two requests total eight cents. They were presented to the Oak Ridge City Council on Monday.

It’s not clear yet if the seven-member City Council will agree to any increases for the city or schools. The Council will consider the budget in the first of two readings on Monday, June 8, and on second and final reading on Monday, June 15. [Read more…]

City, schools to present budgets to Council today

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Mark Watson

Mark Watson

Note: This story was updated at 9:23 a.m.

The municipal and school budgets will be presented to the Oak Ridge City Council during a meeting this evening (Monday, June 1).

The municipal budget will be presented by Oak Ridge City Manager Mark Watson. The schools budget will be presented by Oak Ridge Schools Superintendent Bruce Borchers.

The meeting starts at 7 p.m. today in the Oak Ridge Municipal Building Courtroom at 200 South Tulane Avenue. See the agenda here.

City officials have been striving to present a budget that does not include a property tax rate increase. But it wasn’t clear as of last week if that would be possible because of a dramatic drop in sales tax revenues from the Roane County portion of the city. [Read more…]

Anderson County reappraisal shows overall 4 percent drop in total assessments

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John K. Alley Jr.

John K. Alley Jr.

By Anderson County Property Assessor’s Office

The 2015 reappraisal in Anderson County shows an overall drop in total assessments.

“In the past, values have always increased,” Anderson County Property Assessor John K. Alley Jr. said. “I promised a fair and accurate assessment for Anderson County, and I feel that is what I have delivered to the property owners.”

The primary purpose of this article is to explain the reappraisal process and set the guidelines for making an appeal, if desired.

2015 is a reappraisal year for Anderson County. [Read more…]

Guest column: Trying to set the record straight on the property tax rate

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Online comments by local citizens in response to some recent guest columns about city and county budgets and taxes have revealed some mistaken notions about the way property tax rates are established in Tennessee cities and counties. I want to set the record straight regarding a couple of misconceptions about property tax that I see being spread in recent public discussions.

On the Oak Ridge Today website, citizen Andrew Howe posted a comment saying:

“The property tax rate should NEVER have to increase. It is basically a percentage of the value of the home, right? And if the value of the home rises (as it should, in line with the cost of living), then the taxes will also rise.”

I can’t quarrel with Mr. Howe’s logic, but his conclusions are wrong. This is because he makes an assumption that is valid in many states but isn’t valid in Tennessee.

Under Tennessee law, when properties are reappraised, state officials calculate—and publicize—the property tax rate that will give the local government the same total amount of property tax that it was getting from existing properties before the reappraisal. (This calculated rate is called the “certified tax rate.”) That’s the new baseline tax rate. If a local government in Tennessee wants to get more property tax revenue after a reappraisal, the governing body has to vote to increase the tax rate above the certified rate. [Read more…]