Oak Ridge council approves 2025-26 budget on first reading, holds tax rate equalized

Oak Ridge City Council approved on first reading an ordinance to provide revenue and adopt the city budget for the fiscal year beginning July 1, 2025, after a presentation by city staff and brief public comment.

City Manager Mr. Heaman, presenting the budget, said the proposal maintains an equalized certified tax rate and funds staffing, capital projects and targeted investments. “Compensation in our workforce is the most important thing we do every year,” Heaman said, describing a proposed 2% step increase and a 3% cost-of-living adjustment for city staff and additional professional development funding for about 127 employees.

The budget presentation summarized revenue and spending changes and listed several capital priorities. Staff reported total revenues are forecast to rise about 7.1% (roughly $3.9 million) and proposed expenditures increase by about 8% for the year. The council was told the proposal would keep the certified tax rate equalized so the city’s overall rate would be unchanged, while reminding property owners that individual tax bills may rise or fall depending on each parcel’s appraisal change.

Major items and program details in the proposal include:

- Positions and workforce: Staff said there were 16 position requests and 21 proposed reclassifications across funds; the package includes hiring a senior capital project manager and, six months later, a technician to support capital projects. The presentation also notes conversion of two library temporary part-time roles to regular part time because those employees have worked in temporary status for three years.

- Capital projects: The proposed capital budget includes design funds for an animal shelter (a construction contract and debt issuance for shelter construction are expected later; staff said debt issuance would not occur until 2027), Fire Station 2 design, funding to support a CMAQ match for pool renovation design (a “save the pool” option), a Civic Center plaza restoration (staff said the full plaza work will cost more than $500,000 and likely be phased), sidewalk/stormwater/rails-to-trails matching, park signage replacement and library improvements including a book drop and a library café partially funded by the Friends of the Library.

- Transportation study: Council and staff described a two-year transportation workplan that begins with building a digital traffic model this year to test scenarios as new jobs or developments are added; staff said subsequent years would add mode-specific analysis (bike/ped, transit) and that the city will seek outside funding partners for some components.

- Utilities: The Waterworks Fund will begin operation of a new treatment plant and the city plans a water/wastewater master plan and rate study in 2026. Electric fund work includes pole and conductor replacement, SCADA upgrades and meter-reading automation; staff said roughly $68.5 million in substation and related replacements are anticipated over the next roughly 13 years.

- Schools and maintenance: The proposed budget continues an annual $300,000 maintenance allocation for schools but did not include a requested additional $700,000 maintenance-of-effort; staff explained the city is preserving capacity for a larger future capital need (work on Linden Elementary or a West End site) and for debt amortization tied to school projects.

- Tourism and other transfers: The council was told staff intends to increase funding for Explore Oak Ridge (tourism) from an earlier figure to a higher allocation noted during the meeting. Staff also proposed resuming a payment (transfer) from the electric fund after completion of a TVA audit; a proposed transfer from Waterworks was deferred pending a rate/cost study.

Public comment addressed the proposed pickleball funding. Resident Bridal Drain of Oak Ridge spoke in support and asked about timing, noting the budget includes $195,000 (presenters indicated that amount is for design). Drain suggested short-term interim improvements. A speaker identified in the transcript as Miss Pressman responded that staff is looking at temporary mat solutions for existing courts while permanent design and funding are developed: “the mats if they turn out to work how we're hoping they will. We can get some of those in there, in the short term and then be working on long term solutions at the same time.”

Formal action and next steps: A motion to approve the ordinance on first reading passed 6-0 (six ayes, no nays). The council indicated it will accept any changes submitted by noon on June 4 and scheduled a second and final reading for June 9.

The budget presentation and the first-reading approval concluded council business for the evening. Staff will return with a final ordinance and any amendments on the second reading as scheduled.