Oak Ridge Today

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…]

Roane reappraisals show 3.47 percent assessment drop; OR tax rate calculated at $2.52

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Jason Mumpower

Jason Mumpower

Note: This story was last updated at 5 p.m.

Roane County properties showed an overall 3.47 percent drop in assessed values in the five-year reappraisal process taken over by state officials this year, and the tax-neutral property tax rate in the City of Oak Ridge has been calculated at $2.52, the Tennessee Comptroller’s Office announced Thursday.

The tax-neutral rate is up from the current $2.39 per $100 of assessed value, a 13-cent increase.

Separately, the Oak Ridge City Council has been asked to consider a tax rate increase of up to eight cents, with a one-cent increase requested by the municipal staff and a seven-cent increase requested by the Oak Ridge Board of Education. The one-cent increase would help maintain city services and allow for a 2 percent pay raise for city employees, and the seven-cent increase would help cover a deficit and add money for salaries and staff, including a 3 percent pay raise.

Any tax increase, if approved by city officials, would be in addition to the tax-neutral rate calculated by the state. Each additional cent on the property tax rate generates about another $90,000 in revenue. A one-cent increase would cost the owner of a $145,000 house another $3.63 per year. An eight-cent increase could cost that homeowner another $29 per year. [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…]

Letter: Chamber board lists spending priorities

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Note: This is a copy of a June 8 letter from the Oak Ridge Chamber of Commerce and its Board of Directors to Mayor Warren Gooch and members of City Council, and Chairman Keys Fillauer and the Board of Education.

Mayor Gooch and Chairman Fillauer:

The Oak Ridge Chamber of Commerce Board of Directors voted, following the recommendation of our Advocacy Committee, to request the following be given serious consideration as discussions and voting occurs for your respective Fiscal Year 2016 budgets.

Spending Priorities:

  • Development and funding of a prioritized capital improvement plan for infrastructure improvements such as city/school buildings, streets, utilities, etc.
  • Pay increase for Oak Ridge Schools teachers and staff and City of Oak Ridge staff.
  • Waterfront improvements.

While we understand that the city is faced with adjusting the tax rate to reconcile with lower property appraisals, we do feel strongly that the city needs to prioritize spending around these three areas in order to position Oak Ridge as a community of choice for new and expanding businesses and residents.

Sincerely,

Melinda Hillman

Chairman of the Board

 

Parker Hardy

President/CEO

Council to consider budget on Monday, Tuesday

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They postponed a budget vote for one week, and the Oak Ridge City Council on Monday and Tuesday will resume those discussions. So far, the debate has included calls to raise the property tax rate to fund certain programs and other recommendations to keep the rate unchanged—or even lower it.

The budget will be discussed during a non-voting work session at 5 p.m. Monday, June 15, in the Oak Ridge Municipal Building Training Room. The Council could then vote on it in the first of two readings this month during a 7 p.m. meeting in the Municipal Building Courtroom.

Council will then discuss the budget in a second work session at 6 p.m. Tuesday, June 16, in the Multipurpose Room at the Central Services Complex on Woodbury Lane. [Read more…]

Council defers budget vote to Monday, June 15

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Warren Gooch

Warren Gooch

Note: This story was updated at 8:51 a.m.

It’s still not clear how property reappraisals in Roane County will affect the Oak Ridge property tax rate, so the City Council on Monday deferred a vote on the budget until Monday, June 15.

Council had been scheduled to consider the budget in the first of two readings on Monday (June 8). Council was expected to consider the budget on second and final reading on June 15.

But the five-year property reappraisals in Roane County are not yet complete, and it’s not clear when they will be. Officials said property assessments there are likely to go down as they have in Anderson County, where they’ve fallen 4 percent.

An overall drop in property values could require an increase in the tax rate because the revenues after the reappraisals have to remain the same as they were before. [Read more…]

Guest column: Next six-month challenges in Roane County

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Ron Woody

Ron Woody

By Ron Woody, writing in the January 2015 “County Executive’s Newsletter to the County Commission”

“Next Six Month Challenges”

As we begin the next calendar year, we thought it would be appropriate to identify some challenges which will come before commission in the next six months. As always, the beginning of the calendar year starts the annual budget process. Commission has made many major steps over the last number of years in establishing a more formal budget development process as budget focus has been divided into operating budgets and capital budget. We are not to the point we should be yet in both funding and understanding, but much as been accomplished and that I call a success.

Now to our six-month challenges:

  1. More deployment of capital budget. We plan on working on this in February and March. The questions to be answered are: Are we setting aside enough funds for replacement of our assets? Where do these set-aside funds come from and how do we protect these funds from competing services?
  2. Insuring that the county has a successful reappraisal program which includes not only accurate value but an understanding of the reappraisal impact.
  3. Funding of operational budgets which are either strained (general government) or suffering major loses (schools).
  4. Educational plans of capital improvements and related funding whether consolidation of schools are considered or not.

[Read more…]

Guest column: Afterthoughts on the 2015 budget

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Trina Baughn

Trina Baughn

A lot of incomplete, and sometimes inaccurate, information has been disseminated to the public regarding the Fiscal Year 2015 city and school budgets. Such inconsistencies compound citizen frustrations as they begin to feel the impact of both bodies’ decisions. I would like to offer some clarification along with supporting resources, which will also be hyperlinked within my website, trinabaughn.com.

First, let me address the claim that council is “not supportive” of our schools. I assure you that each and every one of us actively supports the education of Oak Ridge children with both our private and public contributions of time and money.

Furthermore, when factoring in debt payments, council allocates roughly half of all property taxes toward our schools. In fact, there are only four other communities in all of the state that out fund Oak Ridge at the local level. And even though council did not increase the tax rate this year, we did increase funding to the schools by over $500,000 due to the high school mortgage obligation shift. And contrary to claims that funding levels have been flat or declined, a simple comparison from 2005–2014 shows that total school spending has increased from $42.3 million to $55.5 million.

Second, both city and school representatives are guilty of understating their employees’ history of pay increases. City employees have received pay raises four out of the last five years. Teachers, too, have received raises every year of the last five years. The range and form of those raises is worthy of further discussion, and I intend on broaching the subject in our next joint Council/BOE meeting. [Read more…]

School board to consider revised budget proposal on Monday

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Oak Ridge Board of Education

The Oak Ridge Board of Education and school administrators are pictured above during a meeting earlier this year. (File photo)

The Oak Ridge City Council did not want to raise the property tax rate, so the Oak Ridge Board of Education could consider cuts to next year’s school budget during a Monday evening meeting

The school board passed a budget in May that requested a 37-cent property tax rate increase to start rolling out a technology initiative known as 1:1, hire technology personnel and other staff, comply with the reporting requirements of the federal Affordable Care Act, and give employees a 2 percent pay raise, among other things.

But in two meetings this month, the Oak Ridge City Council rejected any change to the tax rate, and it will remain unchanged for the seventh year in a row. [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.

[Read more…]

Guest column: Tax hike will hurt city’s ability to recruit DOE workers

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The Oak Ridge Schools are requesting a substantial property tax increase to fund items they see as essential to their future.

Yet an Oak Ridge tax hike will markedly reduce our city’s ability to recruit new U.S. Department of Energy workers. According to the latest DOE report, Anderson County is losing over $300,000 per week to Knox County in DOE payroll. That loss rate is increasing, and a tax hike would make this serious problem worse.

Unfortunately, our city has a DOE “isolation fence” around it. In most cases, new workers are sent by the DOE system directly to Knox County—mainly to Farragut. And as a result, their important housing decisions are made without talking to an Oak Ridge realtor. They never get an opportunity to find out how wonderful it is to live here.

The new Kroger store won’t affect this uneven playing field. A property tax hike (of any size) will simply make the problem worse—giving Farragut an even greater advantage over us. [Read more…]