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Oak Ridge staff present draft budget prioritizing pay increases, capital projects and vehicle replacements
Summary
City staff proposed a fiscal-year budget that emphasizes employee compensation adjustments, continued capital work on an animal shelter and pool design, vehicle replacements and modest revenue growth; the proposal includes a 3% cost-of-living adjustment and a 2% step increase.
Oak Ridge city staff presented a draft fiscal plan that would fund pay adjustments, several capital projects and continued maintenance across departments while holding existing tax rates steady.
The proposal centralizes employee compensation changes — a 3% cost-of-living adjustment and a 2% step increase — and schedules periodic market pay reviews so departments are re-evaluated every three years. Staff said projected revenues rise about 7.1% year over year, driven by sales and property taxes, with an overall $4 million increase in revenue forecast for the coming fiscal year.
Staff framed the compensation package as a way to maintain competitiveness and reduce turnover. The budget summary lists 16 position requests this cycle and 21 requested reclassifications: staff recommended adding nine positions and approving four reclassifications in the general fund. Staff also proposed carrying forward an additional $500,000 for street paving and budgeted roughly $700,000 for vehicle replacements across departments.
The presentation proposes a Payment in Lieu of Taxes (PILT) transfer from the electric fund this year; staff recommended delaying a PILT transfer from the waterworks fund until after a forthcoming rate study and until the new water treatment plant’s operating costs are better understood. Staff also flagged a large increase in sports-betting-related revenue collections compared with the prior year and said they will provide the detailed breakdown at a later meeting.
Staff noted that certified property tax rates from Roane and Anderson counties were still pending and that individual property tax bills will vary by assessed value changes. The proposal does not increase the certified tax rate in the draft as presented.
The budget packet includes multi-year capital work: design for the animal shelter, an outdoor pool renovation design, continued implementation of the Kayenta information system, and design funds for Fire Station 2. A list of proposed projects and a departmental breakdown appear in the packet available to council for review prior to first reading.
Staff said the draft will go to the Budget and Finance committee and that compensation committee recommendations were approved unanimously and then referred to Budget and Finance before first reading.
Ending: Council members and staff asked follow-up questions about cost-recovery coding, SRO (school resource officer) cost lines and timing for the rate and tax certifications; staff committed to providing additional detail before the council’s first reading of the budget.
