Oak Ridge Today

Council considers budget with no tax increase, less money for Chamber, ORCVB

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Mark Watson

Mark Watson

The Oak Ridge City Council on Monday will consider a budget that does not raise property taxes but could cut funding for the Chamber of Commerce as well as the Convention and Visitors Bureau.

It would include contracts with economic development consultants Ray Evans and Steve Jones and a 1 percent cost-of-living pay raise for city employees.

Under the budget proposed by Oak Ridge City Manager Mark Watson, the property tax rate would stay at $2.39 per $100 of assessed value. [Read more…]

Frank proposes cuts in county property tax rate, law director’s budget

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Terry Frank

Terry Frank

Note: This story was last updated at 9:46 p.m.

Anderson County Mayor Terry Frank on Wednesday proposed cutting the property tax rate by 1.62 cents and reducing the county law director’s budget by 16.5 percent.

It would be a $52,069 decrease in the budget of Anderson County Law Director Jay Yeager, who said he would have to lay off one of his two staff members.

Frank proposed reducing the property tax rate by 1.62 cents through a restructuring of the Alternatives to Incarceration Program, a relatively new program that lost its director in March. [Read more…]

Clinton budget: no tax hike

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Information from WYSH Radio

The Clinton City Council held its budget workshop on Monday, and as presented, the proposed budget for Fiscal Year 2013-2014 is balanced with no property tax increase for city residents.

The budget leaves the property tax rate at 76 cents per $100 of assessed value while providing 2 percent pay raises for city workers and taking into account projected increases of between 5 and 20 percent in employee-related and liability insurance. [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…]

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

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Mark Watson

Mark Watson

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. [Read more…]

Guest column: It’s not the property tax rate

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There is a persistent plaint that workers at Y-12 National Security Complex and Oak Ridge National Laboratory don’t live in Oak Ridge because the property tax rate is so high. Farragut is pointed to as having no city tax at all and therefore highly attractive. Farragut, no less than Oak Ridge, is indeed an attractive area in which to live. It is not because of the property tax rate.

Let’s look at a few of the numbers related to the Oak Ridge city tax rate of $2.39. That rate is applied per $100 of value on 25 percent of the assessed value of residential property. In other words, if one’s home has been appraised at $150,000, the epitome of an “affordable” home, the city property tax is $2.39 per hundred dollars on $37,500, or $896.25. That means that this homeowner is paying just at $75 per month for city services.

Among the services covered by this $75 are police, fire fighters, parks and recreational services, library, street lights, sidewalks, code oversight, street maintenance, and the city’s contribution to the schools. That is $75 per household, not for each person. [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: Oak Ridge has growth potential in sales tax revenue

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Editor’s note: The following is an edited version of a statement Oak Ridge City Council member Chuck Hope made during a candidates forum before the Nov. 6 election.

Why do I want to be on City Council? Because Oak Ridge has given me so many opportunities and provided for my family for over 30 years, I want to make sure that the next generation has those same opportunities.

How do we make sure those opportunities are available for the next “Oak Ridgers”?

We start by making sure we keep a close watch on our revenue and expenditures. We need to understand that we really only have two main sources of revenue that come into the city. They are our property taxes and our sales tax revenue.

As most of you know, our property tax rate is higher than our surrounding cities and towns. However, compared to other “full service cities,” ours is comparable. There are only a handful of these “full service cities” all across Tennessee.

But before we can start to really change the rate, we must first find revenue from other sources. Where we have the most potential for growth in revenue is in the sales tax revenue we generate. For a city our size and with the economic drivers that we provide to the region, we should be bringing in a substantially larger portion of sales tax revenue.

We must find ways to increase our sales tax revenue before we can start to reduce our property tax rate. This is where I will focus my energy. To do that, we must continue to find ways to bring in more retail options (both restaurants and shopping choices), continue to work closely with the Industrial Development Board, Chamber of Commerce, and Economic Partnership to bring additional private investment capital and jobs, then make sure the Economic Diversification Fund is working for us.

Once we get the sales tax revenue growth improving, we can then start to look at ways to reduce our property tax rate so we can be competitive within our region. All the while making sure we are diligent and remember our expenditures and stay within our annual budget. We are always looking for ways to streamline our costs while maintaining our quality-of-life services.

But one of our biggest attributes the city needs to pay close attention to is our school system. It is still the biggest reason young families come to Oak Ridge, and it is the benchmark all other education systems set the bar to. But if we don’t continue to work with the school board and find solutions to some real issues before us, other communities will close the gap, and we may never be able to set the bar high enough again.

As you can see, City Council has many challenges before them, and I believe I can contribute to finding solutions to these issues. With your support and input, I will bring my business sense to council.

Chuck Hope

Oak Ridge

Baughn: Let’s lower the property tax rate

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Trina Baughn

Trina Baughn

The future of Oak Ridge is entirely dependent upon our ability to attract new residents and businesses. To do that, we must first acknowledge an unspoken truth: Outsiders view Oak Ridge as being too expensive. We must work to change that. Oak Ridge must become competitive.

Why do people say that it costs so much to live and work in Oak Ridge? What I hear is that our leases, properties, gas, and even our groceries, all cost more than our neighboring communities. I haven’t verified that to be the case, but those are things that the city government can’t (and shouldn’t) control.

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Council considers budget again tonight

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Oak Ridge City Council

The Oak Ridge City Council will consider a budget tonight that does not include a tax rate increase.

The Oak Ridge City Council will consider a budget tonight that does not include a property tax rate increase but does include a 1.5 percent pay raise for city employees.

Council approved the budget on first reading May 14, and tonight’s vote will be the second and final reading.

[Read more…]