Oak Ridge Today

Opinion: A blueprint for growth, the choice is yours

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By Leonard Abbatiello

Nov. 19, 2015

In a previous article, I pointed out how Oak Ridge has changed. To summarize, we have changed drastically since the mid-1970s, becoming Tennessee average in median income, graduation rates, ethnic and age distributions. We are also heavily in debt, as we continue to spend beyond our means for all of our high quality services.

About 50 percent of our housing is over 70 years old and in various conditions located on lots that are often unsuitable for today’s desired off-street parking. Currently, over 12 percent of all homes are vacant, and those on the market are selling at 75 percent of their initial asking price. All aging residential housing is collectively dropping in both value and desirability. Our low-income population has increased to the point that they are the majority of our residents, and they cannot financially support our high-end services. Today, we are building only 10s of new homes annually, and a large percentage of the Manhattan Era housing remains vacant. Department of Energy radioactive and hazardous waste storage taints the community image as an attractive place to live.

We have evolved to this condition from a city that was given to us citizens debt free in the 1960s and rocketed to be the highest property taxed Tennessee city by 1973. Since then, it has endured a long list of both failed and evaporated DOE promised self-sufficiency projects. Today, DOE self-sufficiency efforts are no longer offered by DOE. Things even got worse following the 1985 fragmentation of all DOE single contractor federal operations, which then made effective local financial discussions impossible. [Read more…]

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…]

Council to discuss DOE funding, support tonight

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Oak Ridge City Council

The Oak Ridge City Council has a special meeting tonight to discuss U.S. Department of Energy support and funding. (File photo/August 2013)

 

The Oak Ridge City Council will discuss U.S. Department of Energy funding and support during a special meeting tonight. It’s described at least in part as an “information-gathering session.”

The special meeting was called by City Council members Trina Baughn and Charlie Hensley. Hensley, in particular, has raised questions about whether DOE is paying its fair share to the city.

Here’s the language outlining tonight’s discussion:

“to discuss and possibly take action on a plan to engage DOE officials with regards to their obligations to the City of Oak Ridge and its citizenry. Let it [the special meeting request] include formally requesting, in writing, a DOE Community Assistance Review as allowed within AECA 1955, PL 84-221, DOE Order 2100.12A, and other supporting legislation, including those self-sufficiency plans dating from 1980 through a Council Resolution and other joint local government collaborative action to include a specific date for a response.”

[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…]

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

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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…]

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…]