Oak Ridge Today

No change in Anderson County property tax rate, officials say

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Anderson County Commission in June 2014

The Anderson County Commission is pictured above during its Monday night meeting. (Photo by Sara Wise)

CLINTON—The property tax rate will remain unchanged in Anderson County in the fiscal year that begins July 1, officials said.

Anderson County Mayor Terry Frank and the Budget Committee had both presented a no-tax-increase budget, and on Monday, the Anderson County Commission set the property tax rate for the 2014-2015 fiscal year.

The tax rates for the new fiscal year will stay the same as the rates for the current fiscal year, which ends June 30. Property owners within the city of Clinton will pay $2.50 per $100 of assessed value on their property, Oak Ridge property owners will see a tax rate of $2.347 per $100, and property owners in Lake City, Oliver Springs, Norris and unincorporated areas of Anderson County will pay $2.529 per $100 of assessed value.

While Anderson County Commission voted to approve the tax rate resolution, the legislative body has not yet approved an operating budget for the new fiscal year, the Anderson County Mayor’s Office said in a press release. [Read more…]

In final vote, City Council again rejects tax increase for schools

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Oak Ridge City Council Budget Meeting

The Oak Ridge City Council on Monday again said “no” to a property tax rate increase to give more money to Oak Ridge Schools. Council is pictured above during a June 9 budget meeting.

 

Note: This story was last updated at 11:15 a.m. June 17.

Two last-minute attempts to pass smaller-than-requested tax increases for the Oak Ridge Schools failed on Monday, and the City Council voted 4-2 to approve a budget that does not raise taxes in the fiscal year that starts July 1.

The decision to not raise taxes for the seventh year in a row came after a parade of residents in two meetings this month asked Council to fully fund the schools. Many said they moved here because of the schools, and they said the educational system is Oak Ridge’s primary asset. School teachers, administrators, and school board members also said they support a greater investment in the schools.

“Flatline budgets will eventually produce flatline results,” said Steve Reddick, an eighth-grade social studies teacher at Jefferson Middle School and co-president of the Oak Ridge Education Association.

The schools had requested $17.9 million from the city, but the no-tax-increase budget lowered that amount to $14.6 million. School officials had previously said they will have to “go back to the drawing board” and make cuts if Council did not approve the tax rate increase. It’s not clear yet what cuts might be made. The Oak Ridge Board of Education could discuss changes to the school system’s budget, which was approved in May, during a Monday evening meeting.

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In first vote this month, Council rejects schools request for tax increase

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Oak Ridge City Council Budget Meeting

The Oak Ridge City Council rejected the school system’s request for a 37-cent tax rate increase on Monday, instead voting in the first of two votes this month to keep the tax rate steady for the seventh year in a row.

Note: This story was last updated at 9:55 a.m. June 10.

In the first of two votes this month, the Oak Ridge City Council on Monday rejected a request from school officials for a 37-cent tax rate increase that would, among other things, help fund a technology initiative meant to eventually provide an electronic learning device or tablet to all students.

Council member Charlie Hensley said the tax increase would be the largest in the city’s history, and it came in late in the budget process.

The property tax rate is now $2.39 per $100 of assessed value. The increase would push it to $2.76, and it could cost the owner of a $200,000 home another $15 per month.

“I was looking to support a tax increase, but the one that we got asked for is really, really high,” Hensley said.

There was a two-part vote on the budget on Monday. The first reduced the amount transferred to the schools to roughly $14.6 million, which was about $3.3 million less than the school board had requested, and it kept the tax rate steady for the seventh year in a row. The vote on that amendment was 5-2, with Hensley and Council member Chuck Hope voting no. [Read more…]

City recommends budget with no tax increase, Council votes Monday

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Oak Ridge City Council

The Oak Ridge City Council is pictured above during an August 2013 meeting. (File photo)

Note: This story was updated at 7:40 p.m. June 4.

Oak Ridge City Manager Mark Watson on Monday recommended a budget that does not raise the property tax rate, setting up a potential conflict with school officials, who have requested a 37-cent tax increase to avoid cuts.

The Oak Ridge Board of Education already approved its budget in in two meetings last week. That budget, which was scaled back from an earlier proposal, could include an extra $3.3 million to start implementing a technology initiative known as 1:1 that would provide electronic learning devices to all students over three years, add five technology positions, and give 2 percent pay raises to staff.

But the budget is still subject to the amount appropriated to the schools by the city. Oak Ridge provides a little less than one-third of the school system’s funding.

While the schools have approved a budget for the fiscal year that starts July 1, the city has not. The Oak Ridge City Council will consider the municipal budget in two separate meetings this month, one on June 9 and the second on June 16. The city budget also includes a 2 percent pay raise for employees.

It’s not clear that Oak Ridge City Council members will agree to raise taxes to accommodate the school system’s request. In his budget presentation to Council on Monday, Oak Ridge City Manager Mark Watson said Council members have endorsed keeping the tax rate unchanged for the seventh year in a row.

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Letter: Will not vote for tax increase, wants better communication with schools

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Note: This is a copy of a June 2 letter from Oak Ridge City Council member Anne Garcia Garland to Parker Hardy and members of the Oak Ridge Chamber of Commerce. 

Dear Chamber:

The Oak Ridge City Council has always supported the needs and beyond of the city school system. This current council has lived in that tradition. We honor and appreciate our students and our teachers and have voted to provide whatever can reasonably be provided. We have also weathered the annual School Board predictions of educational catastrophe if the increased budget projections are not allocated.

This town depends upon the base of education and economic largesse of its original homeowners at the beginning of the 1950s for its sense of pride and place in academia. It is, however, that early well-being and the growth and optimism of the early post-war years which have created a myth of extraordinary wealth and erudition with which we are burdened today. Our reality is that we are a lovely small Southern town with great diversity of education, income, and opinion. We are neither young nor old, rich nor poor, progressive nor conservative. We are all of these descriptions and many between.

This town created a wonderful culture and honored its natural environment in such an outstanding manner that it has attracted citizens from neighboring counties to live and work here. Perhaps because we did not have a large stock of new or above-average priced homes, we have not attracted a large number of the professional transferees to the federal facilities in the past couple decades. After all, “youngish” professionals selling homes in more expensive markets need the tax protection of buying comparably priced homes in this area. [Read more…]

Anderson County budget process moving along

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Anderson County Courthouse

The Anderson County Courthouse on Main Street in Clinton is pictured above.

Information from WYSH Radio

As WYSH reported last week, the Anderson County Commission’s Budget Committee has approved County Mayor Terry Frank’s budget proposal for the fiscal year that begins on July 1. The proposed $25 million general fund budget keeps the property tax rate at current levels but does not include pay raises for county workers.

Previously, the budget committee had recommended keeping the funding for all county general fund offices at their current levels, and officials said that the budget does include provisions for a projected half-percent increase in the cost of health insurance and state-mandated salary increases for certain county officeholders.

When the various county departments submitted their initial budget requests, the total was about $2 million out of balance but “with understanding and help, we whittled that down,” according to Frank’s summary of the budget process released late last week. [Read more…]

School budget proposals include cuts, tax hikes with varying benefits

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Bruce Borchers

Bruce Borchers

Oak Ridge Schools Superintendent Bruce Borchers presented three budget proposals for fiscal year 2015 to the school board on Wednesday. The proposals suggest that deep cuts will need to be made to attract new students, families, and staff to the district, and to keep those already here. Borchers introduced the proposals by stating that the district will be “tightening our belt.”

Students, families, and staff were the main theme of the budgets proposed on Wednesday. In fact, each was presented to show a different budget scenario that would lose, retain, or attract the group. The school board will review two budgets intended to retain and attract those groups, as well as a third expected to result in a loss of students, family, and staff. All of the budgets proposed generate revenue through expenditure cuts.

All three budget proposals suggest property tax rate increases to offset the cuts, with the rate hikes ranging from 14 to 57 cents.

With about $1.2 million in cost savings, the first proposal has the lowest budget target, and it was referred to as the “losing students-families-staff” budget. It proposed the fewest system-wide cuts, but still suggested that reductions are needed. Those expenditure cuts include increasing class sizes and reducing teaching positions and transportation services. Transportation reductions would increase the student “walk zone” to one mile and end preschool transportation altogether. This proposal would not be able to fund the district’s 1:1 device integration program.

The second budget, said to “retain students-families-staff,” is targeted to bring $3.7 million in revenue through cost savings. This budget would still make cuts to staff and transportation, but would allow the planned 1:1 device integration to begin, which would be cut from the “losing” budget. This budget allows a 2 percent wage raise system-wide, but still calls for staff reductions, including reducing the assistant principal position at Oak Ridge High School as well as extra-curricular stipends and staff development reductions. [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: Budgeting and property taxes, why are we different?

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By Leonard Abbatiello

As a matter of convenience to the Oak Ridge Board of Education, the city is getting ready to change the budgeting cycle and the Oak Ridge property tax due and delinquent dates. The city-proposed changes are only a partial band-aid. No one has considered the taxpayer, or the impact of what is best for everyone. 

Early in Oak Ridge’s municipal history, the city had the State of Tennessee legislature pass a private law and a local ordinance which made it possible for Oak Ridge to tax its businesses and citizens much earlier than any other government in Tennessee. It was cash-flow strapped and it then sought state relief to force earlier federal payments. This created a budget cycle that required Oak Ridgers to pre-pay property taxes rather than pay-as-you-go, which happens in the rest of Tennessee.

Today, Oak Ridge is the only Tennessee government which sets its budget and property tax rate in May, its tax bill payments due date is June 1, and the late tax payment date now is July 31 annually. This makes us pre-pay our property taxes and forces early budget decisions. [Read more…]

Nothing to report yet on Oak Ridge Schools funding, state official says

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Tennessee officials had little to say on Wednesday about the potential loss of state education funding that Oak Ridge school officials have said could cost the school system $1.87 million per month—and lead to a temporary school shutdown on Oct. 1.

“We are starting to have meetings with various people regarding this situation, but at this point, we don’t have anything to report,” said Kelli Gauthier, communications director for the Tennessee Department of Education. [Read more…]

School officials say millions in state funding at risk, could close schools Oct. 1

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Bruce Borchers and Mark Watson

Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson have had a series of meetings concerning the school system’s failure to pass a state maintenance of effort test, and a possible resolution of a $250,000 shortfall to avoid a potential loss in state funding of up to $1.87 million per month.

Schools want city to cover $250,000 shortfall, could require 2.5-cent tax increase

It’s a high-stakes battle between the city and the schools, with a potential loss of up to $1.87 million per month in state funding—and a possible shutdown of the school system on Oct. 1.

School officials said the Oak Ridge system has failed a state maintenance of effort test that requires local funding to remain at least the same from year to year. After some budget adjustments, there is a $250,000 shortfall, school officials said, and they want the city to cover it. It’s the equivalent of a 2.5-cent property tax rate increase.

“Unfortunately, we’re just in the position to ask the city to help us,” Oak Ridge Superintendent Bruce Borchers said Thursday. “They’re going to have to find that $250,000.” [Read more…]

Legal fees add up as officials try to ‘stop the bleeding’ in dispute between mayor, sheriff

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Anderson County Detention Facility

Anderson County Mayor Terry Frank and Sheriff Paul White are engaged in a legal fight over a two-page salary agreement that includes, among other things, six months’ worth of funding for 36 new employees at a new jail pod at the Anderson County Detention Facility in Clinton. (Photo courtesy Anderson County Sheriff’s Department)

CLINTON—The legal fees might already exceed $20,000, and they could continue to mount in a bitter dispute between the mayor and sheriff over a $7.7 million salary agreement for the Anderson County Sheriff’s Department.

Efforts to “stop the bleeding”—and avoid extra expenses for Anderson County residents—were unsuccessful after a lengthy, heated debate on Monday night. During that debate, Anderson County commissioners rejected several proposals to cover some legal fees of Mayor Terry Frank in her response to a salary suit filed in July by Sheriff Paul White. Among the rejected options were proposals to pay Frank’s fees so far but no more, capping them at $40,000, or covering all expenses until the matter is resolved.

Frank has refused to sign the salary agreement, saying it includes about $1 million more for salaries and overtime than was approved by commission in June. But the Sheriff’s Department has said the salary agreement is routine and was drafted according to state law, and actual spending will be closer to the $6.6 million approved by the commission as part of this year’s budget. [Read more…]