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Oak Ridge budget hedges against costs
The possibility that expenses will keep rising tempers the Town Council’s outlook for capital spending projects
by CHRIS BURRITT
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OAK RIDGE – Oak Ridge’s newly adopted budget leaves intact the property tax rate of 8 cents per $100 of valuation, creating enough of a financial cushion for the town to fund capital projects amid rising inflation.
At least, that’s the hope. The prospect that prices will keep climbing led council members to caution that some capital expenses slated for the fiscal year starting July 1 may be delayed. Concerned about rising costs, the council decided to leave the property tax rate unchanged, despite a projected 20% increase in property tax revenue, primarily due to Guilford County’s revaluation of property earlier this year.
“There are simply too many variables over which we have no control that make it not feasible to consider a tax reduction at this time,” councilman Spencer Sullivan said during the council’s meeting June 2. “We may have to rethink or postpone some of these projects.”
The council didn’t discuss which projects may be delayed. The $7.36 million spending plan earmarks $5.85 million for capital spending, with the development of Heritage Farm Park estimated to cost $3.66 million. Projected to cost $455,000, the restoration of the historic Redmon House into a community meeting space won the support of council members who sided with residents seeking the preservation and reuse of the 1930s-era farmhouse in Town Park.
The budget proposes drawing down Oak Ridge’s reserves by $1.47 million to help cover expenses. As of April 30, the town’s unassigned fund balance totaled $2.48 million.
In voting unanimously to adopt the budget, the council followed the Finance Committee’s recommendation. The committee concluded that “there was no basis for reducing or increasing the tax rate,” Chair John Jenkins told the council. “We thought it would be prudent to stay with the tax rate that we have, particularly for coming years.”
“I think we’re going to have some belt tightening to do… even with keeping the rate the same,” council member Martha Pittman said. “Maintaining the same rate is the prudent course.”
Mayor Ann Schneider called the spending plan “an excellent budget. As a town and a town council, we continue to be ambitious in our vision but cautious and conservative in the execution of town projects.”
“This budget contains no fat,” councilman George McClellan said.
During a public hearing before the council’s vote, resident Chuck Salmon urged the council to reduce the property tax rate and delay some capital spending.
“All of these things don’t need to fall into this fiscal year,” Salmon said.
Holding the tax rate steady amid higher property valuations is “essentially the town council voting for a tax increase,” he said. “You’re taking advantage of the situation.”
Debbie Shoenfeld, chair of the town’s Historical Preservation Commission, countered that higher property tax receipts will cover rising costs incurred by the town.
“It’s not like you can say that we’re getting all of this money in and we’re just going to have this great time and have a big party with it,” Shoenfeld said. “That’s not what is happening. This country is undergoing a state of high rates of inflation. Thank goodness we will have the money to pay these inflated costs of what it takes us to maintain this town.”
Spending to restore the Redmon House generated the most debate during the meeting, with eight residents expressing support for the project.
“The Redmon House is a lovely reminder of the farming community that (Oak Ridge) was when my dad and others farmed this land,” said Myra Blackburn, a lifelong Oak Ridge resident.
As a member of the town’s Historical Preservation Commission and the Oak Ridge Garden Club, Barbara Engel said she “would like for my taxes to go towards this house.”
Not only would its restoration preserve the structure, but it would also create space for seniors and other groups, Engel said.
The house “is a calling card to our town,” said Historical Preservation Commission member Courtenay Harton.
While resident Rob Alderson said he “loves the sentiment with the Redmon House,” he noted that “at the same time, we need to be practical” about how the town spends money.
He said he’s among tennis players in Oak Ridge who would like for the town to build courts for tennis and pickleball.
Plans for development of Heritage Farm Park include eventual construction of tennis courts, said John Browning, a member of the Parks and Recreation Advisory Board.
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