Oak Ridge Today

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…]

City, school officials endorse resolution of sales tax, high school debt dispute

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Oak Ridge City Council and Board of Education

A proposal to resolve a dispute over sales tax revenues and high school debt had majority support during a non-voting joint work session of Oak Ridge City Council and Board of Education on Friday.

Note: This story was updated at 1 p.m.

It hasn’t been approved yet, but a majority of city and school officials on Friday said they support a proposal that would resolve a long-running dispute over whether to use some sales tax revenues collected in Anderson County to help pay for renovations of Oak Ridge High School.

The dispute has centered on how to use a portion of new sales tax revenues collected in Anderson County outside of Oak Ridge under a May 2006 referendum. School officials had argued they could keep that portion of the revenues, but municipal leaders had said the money should be used to help pay down the debt on the $66 million renovation of the high school.

The amount of money in question is in the range of $250,000 to $300,000 annually, although the total varies from year to year. [Read more…]

City, schools could resolve high school debt, discuss Blankenship bleachers

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Oak Ridge High School

Municipal and school officials could resolve a long-running dispute over sales tax revenues and how they should be used to repay the debt on the $66 million renovation of the Oak Ridge High School, pictured above.

Oak Ridge municipal and school officials could resolve a long-running dispute over sales tax revenues and high school debt payments, and they will discuss a proposed resolution during a joint work session Friday.

The non-voting work session will include the Oak Ridge City Council and Board of Education. Also on the agenda is an update on the visitor bleachers at Blankenship Field, which are being demolished. It’s not clear yet how replacement bleachers will be funded.

The meeting starts at noon Friday in the Oak Ridge Municipal Building Training Room.

The sales tax dispute has centered on how to spend new revenues collected in Anderson County, but outside Oak Ridge, under a sales tax increase approved by county voters in a May 2006 referendum. School officials had argued they can keep that money, but municipal officials had said the revenues should be used for debt payments on the $66 million renovation of the Oak Ridge High School. [Read more…]