Oak Ridge unveils budget emphasizing workforce pay changes, capital projects and $16.8M bond

City staff presented a proposed budget the council described as focused on “maintaining momentum,” with pay changes, targeted hires and a list of capital priorities that would be funded through a mix of grants, transfers and a proposed general‑obligation bond.

The presenter told the council the budget includes a 2% step increase plus a 3% cost‑of‑living adjustment for employees, and an expansion of the step program to 20 steps to address long‑term employee advancement. Staff estimated the immediate personnel cost of this compensation work at about $446,000 for the current budget year and described the compensation changes as the second year of a three‑year review cycle.

Capital priorities called out in the presentation include a proposed $6 million animal shelter, a $5 million pool renovation, three pumper fire trucks, and continued investment in paving and small‑area planning. Staff proposed a $16.8 million general‑obligation bond (about $17.095 million in principal and fees) on a 20‑year schedule at an estimated 4% interest to fund the animal shelter, the pumper trucks and Fire Station 2.

On equipment funding, staff proposed restructuring the city’s equipment rental/replacement approach: the accumulation portion of the current internal service fund would be phased out, assets and shop services would remain in a dedicated internal service fund, and replacements would be handled through an assigned fund‑balance plan and operating‑budget allocations going forward. The report said software and hardware purchases would be allocated to departments’ operating budgets when appropriate.

Staff also noted expectations for increased grant revenue and a conservative revenue forecast for the coming year; the presenter said approximately $7 million of additional grant revenue is anticipated but that the city will not spend grant‑funded items unless the grants are awarded.

Council questions focused on transparency and assumptions: members asked for the basis of the revenue projections, clarification on how the equipment fund changes would affect departmental operating budgets, and confirmation that the school administration would receive the presentation materials. Staff said they would provide supporting detail and meet with school leaders to coordinate projects that could affect the school system.

Next steps: staff will refine budget materials for the June meeting cycle and respond to specific council questions on revenue projections, equipment fund mechanics and project financing; no vote or formal adoption occurred at the meeting.