Commissioner Ellis's Report on the Budget Committee Meeting

The Budget Committee recommended to the full Commission last night the following.

Rural Residents will see a 1 cent tax decrease

Residents of the following cities Kingston, Rockwood and Oliver Springs will see a 2.5 cent tax increase

Residents of the City of Harriman will see a 4.5 cent tax increase

Resident of the City of Oak Ridge (Roane County portion) will see a 6.5 cent tax increase

I voted NO on the recommendation I felt there could be other ways we could have cut the budget.

Now this recommendation will go to the full Commission on 07/12/2011 where it can be adopted or amended.

There will be a Public Hearing/Budget Committee meeting and WORK SESSION on the FY 2012 Budget will be held on July 7, 2011, beginning at 6:30 p.m. in the Qualls Commission Room on the 2nd floor of the Courthouse in Kingston for all interested citizens of Roane County.

What specifically are the other ways to cut the budget? What other options were presented to the Budget Committee and by who?

Here is a link to all the FY 2012 County Budget Committee meetings minutes.

(link...)

Randy Ellis
randyellis@gmail.com

I voted NO on the recommendation I felt there could be other ways we could have cut the budget.

This may or may not be the best budget ever. I haven't yet looked at it from that angle yet.

My questions are:
Specifically, what are the other ways to cut the budget?
What other options were presented to the Budget Committee and by whom (which Commissioners)?

Over the past three months of debate, I don't see anything that addresses the questions that I asked, either in your response or in the minutes. Maybe that all happened in the meeting this week.

Why did you vote NO after making constant motions for approval, seconding and voting YES for the past three months?

You obviously didn't want the Equalization Board to get their request raise, but that one NO vote was simply $100 compared the the millions you voted YES on.

After months of voting YES, you then voted NO at the last hour. The political posturing leads me to believe that you don't think the residents of the City of Harriman are smart enough to see how they got their 4.5 cent tax increase. Was it political posturing to vote NO after working for months with your fellow Commissioners and the County Executive on the budget Committee? I take it that your vote at the full Commission meeting will also be NO after months of voting YES.

Your quote in Friday's Roane County News regarding the issue of personnel raises equates the highly complex situation to simply giving kids ice cream. How many of Roane County's residents have received raises over the past few years? Using your analogy, the citizens will have to pay for the ice cream while getting none.

It's in no way a silver bullet, but why is there always a hard line in the sand against adjusting the size of the workforce to budgetary demands?

4 cents of the tax increase for the City of Harriman came on 04/15 (link...) with a 4 cent increase approximately 480K to the Fund 151 General Debt Service Fund. To more aggressively pay of the County debt. And I made it known that I thought it was a little to aggressive and I voted NO. So I voted NO from the beginning no last hour NO vote as you have mentioned. And just this last meeting I made it known that I feel the money we are putting in the capital fund was too aggressive also 4 cents another 480K in that fund the County Executive has money set aside for a few years down the road buying more property around the new jail. And what I was referring to with giving kids ice cream referred to not being able to give County employees raises but voting for all school employees raises. I did not vote to approve the schools budget for this reason it is not fair that the schools are wanting more money to give their employees not teachers raise and we can't give the county employees a raise. I suggest you and everyone in Roane County that is concerned about getting a tax increase attend the budget workshop next week.

Randy Ellis
randyellis@gmail.com

You first provided the second to recommend Fund 151 to go before the full commission. You recommended it. Then on voice roll call you voted NO.

Ron Woody ran on the debt issue so it only makes sense that he would propose reducing it.

The minutes dont reflect your objections or alternative ideas. Before you approve the minutes I would suggest you make sure they properly reflect your comments.

My original questions remain.

Making a motion and seconding it does not mean you are approving of it. It is merely getting it on the floor for debate.

Randy Ellis
randyellis@gmail.com

While I could agree, the minutes read as I stated.

Ron Woody did run on reducing the debt. I would hope that he considers the impact of raising taxes in order to reduce it as fast as he wants. If I had to make a choice between Mayor Woody's campaign issue and dealing with the issues that need addressing in the schools, I would have to go with education being the highest priority. Let's not nit pick and create controversy where little actually exists. The big picture needs some clarification.

Education matters.. If you dont want to a bigger jail, then education matters. If you want better jobs in the county, then education matters-Brian

The most successful counties in the country have very strong educational systems. Educational districts with quality progams provide strength and are attributes which attract business.

Roane County must invest in education. If one were to attend the budget - school meetings, I think you would have been surprised as the level of barriers the schools have faced.

The best thing that could happen to Roane County would be to have number 1 schools, IMO.

As most of you know I don't generally comment on the blogs and even had to have my password reset to log in.

I would like to clarify a few items and make a few comments. First I'm proud of our commission for being one of the first if not the first commission in the state to adopt a debt policy since the comptroller's notification that a county must have a debt policy. Second, the commission has also adopted a Capital Policy and thus a plan for the future. Third, the commission then adopted a fund balance policy allowing us to manage budgets with carry over funds from one year to the next. All of these policies are noted our the county website along with our posting of Executive Summaries, Position Statements and MDAs. You may not always agree with us but you will see what our positions are. (link...)

Regarding the 2012 Budget. We will have an Executive Summary presentation at the commission worksession on Thursday evening and may have it posted prior to the meeting.

The budget has basically only a hand full of new items:
Manadated raises for Session Judges and thus the county attorney (Fund 101)
30K for Meth lab clean up (Fund 101)
20K for clean up of county back tax properties (maybe we will get the Harriman properties cleaned up)(Fund 101)
Board of Equalization pay from $100 to $125 about $3,000.
No general or highway employee raises
1 new sheriff investigator (Fund 101)
2 minor pay adjustment in the jail personnel (Fund 101)
a couple minor pay adjustments in Session/Circuit Court (Fund 101)
2% raises for teachers and support personnel (Fund 141, 142, 143, and 144)
25K for Expo Center from the 119 Fund
50K set aside for an incubator project (I see the governor wants to have region incubators so we are in line)
2 new employees in the Highway Fund 131

But really everyone what to talk about taxes and education.
First, Roane County has been one of the leaders since the 1980s (and maybe the 70's but I was not around in the 70s) for local revenues granted to education. We have been in if I'm not mistaken in the top 10 many years for funding education. I think we have two neighbors who have gained more industry than us (Cumberland and Loudon). Note that both Cumberland and Loundon have some of the lowest tax rates in the state and Cumberland has is one of the lowest for education support. Makes one wonder it the tax rate has an impact on recuiting or not. Another debate for another time. By the way Cumberland will be in reapprasial this year so we will see a drop in their tax rate from 1.49?? to what?? and Roane dropped to 2.19 last year in reapprasial. Are we going to help Cumberland go lower with the Plataeu Park, our investment but Cumberland's return (that's another story).

Sorry, I need to get back to the budget.
We are not advance paying any debt or aggressively making payments. Our debt payments next year have been in the schedule for the last number of years and we since we now have a multi-year debt budget can tell you our payments for the next 30 years. Payments are pretty well set. No, we are not agressively tackling our $57 million dollar of debt but we will pay debt payments as scheduled for next year. Also we will have expenditures in debt that will be almost $1,000,000 greater than the revenue that supports the debt payments. Yes a $1,000,000 lost. And yes the General Debt Service Fund 151 which pays for our two industrial parks and jail along with some school debt will have to increase 4 pennies. Sorry but we need the 4 pennies and will will still lose over $500K in the fund. The other 2 debt service funds we will also lose money. The good news is that with the debt policy we now have a multi year debt budget and with the adoption this year (4 penny increase in Fund 151 and reduction of pennies in debt funds 152 and 156) we will set the tax that should only be adjusted down with no new debt and up for any specific new debt issuances. Setting the tax rate this year for debt should be good for about 5-8 years and then we will see some additional reduction outside of have any new debt. With the debt tax rates we are in compliance with or working to be in compliance with our fund balance policy. With the new debt rates 4 increase in Fund 151 (county wide rate) and decrease in the other debt funds outside Harriman and Oak Ridge cities then our debt tax rate should be good for a number of years.

Capital Plans- Yes we have one. The first time ever. But it will cost us something. We are adding 4 pennies to the Education Capital Projects Fund allowing us to purchase School Buses without borrowing money for the purchase. First time in at least 20 years (far back as we look)that Roane County has not borrowed in a budget year for purchase of capital assets.

Summary 4 pennies in General Debt as an increase.
4 Pennies in Education Capital Projects for purchase of School Buses.
Total 8 pennies. Now there are some small adjustments in rounding of some of the funds both up and down but less than 1/2 of a penny back and forth.

Rural residents pay for some rural services that the tax rates are being reduced (Solid Waste, Animal Control, and Fire Protection). We do anticipate some reduced service for rural residents.

No advanced payment of Debt only paying what is due and still losing almost $1,000,000 this year if we don't increase this tax then the savings account goes lower and lower and problems become bigger and bigger and within a few years have to look at a bigger tax increase. Also fall out of Fund Balance policy compliance. Our Debt Report which is in draft reflects this problem. So I say set it and we start managing our debt.

Capital planning allows us to schedule replacement assets with current revenue; thereby, not having to borrowing funds for small type of assets.

Please check out our Debt, Capital, and Fund Balance policies. The managing of our finances by adopted policies will help us build a firm foundation and then will allow us to start planning our future vision.

I know I have not covered all the topics and probably have use a few wrong words or misspelled a few but please before you buy into one opinion but research and study the issue. Review our Executive Summaries, Position Papers, MDA, and our presentations. We are trying our best to study the issues and make informed decisions.

Ron

(link...)

The $1,000,000 lost reference should be $750,000. I failed to reflect a transfer in for payments from the Highway Department and Waste Water department. The calucation was correct in all budget meetings and consideration of the budget only a error in my late night postings.

Executive Summary #15 at the county website and then under County Executive's tab you will find the power point which will be used at the Commission worksession. Futher the Debt Report is almost ready for publication and a portion of it will be used to explain the county's debt position. Most of the report was reviewed by the budget committee after a UT CTAS class held at RSCC in April.

We did set $50K aside for an incubator in hopes that we can show the state our interest in having an incubator in Roane County refering to the KnoxNews article. I hope we have a jump start by having the appropriation that other counties may not have thought about. We have been talking with RSCC about a partnership along with others. Anyone interested in a private donation? Covenant Health Care with a building? Any city government? I believe the Alliance/Industrial Board will make a donation. The budget committee approved $50K to show our interest.

I have points of agreement and disagreement with your post, but I really appreciate your willingness to engage in public discussion about it. I hope that everyone will be similarly appreciative of all of our elected officials who are willing to open the process like this and show it by keeping a civil tone in their comments.

Agree or disagree with the points of discussion, not the person, and make your case for what you think is best. I will have a heavy finger on the delete button as a token of gratitude for any elected official's willingness to discuss things here.

Steve

... I join in your expression of appreciation to County Executive Ron Woody for taking the time and for being present to provide these insights.

I also appreciate Commissioner Randy Ellis for his candor and openness.

Whether I agree totally with what either Commissioner Ellis or Executive Woody says or with their opinions about how things should be done, I have to recognize with appreciation their willingness to try to bring some transparency to the process. They should not be cast into the roles of being enemies to each other, nor should they cast themselves in that role. This kind of disagreement should not make enemies.

It is unlikely that either of these individuals has all the right answers for every aspect of Roane County's journey forward. Same can be said for me - or for WC - or for anybody else who is on this forum. The fact that some of us disagree on this or that as the best way to do things should not be a problem.

Ron Woody is right to try to do what he thinks is best. Randy Ellis is right to try to accomplish what he thinks is best. Same for WC. Or any of the correspondents in this thread.

Trying to work through a diversity of opinions is good, and more likely to lead to a better overall path forward.

But all involved need to keep in mind that trying to assign bad intent or ill will or even evil to those who don't see it eye to eye is not the way to proceed.

As WC said - we need to discuss, even debate IDEAS on how to proceed. We don't need to get into saying this person or that person is "bad."

That's my story and I'm stickin to it...

Reference: July, 2011, Greater Knoxville Business Journal - Knoxvillebiz.com

Feedback on incubator grants:

(link...)

"...The state plans to help fund nine sites across the state..."

Is this the same incubator program referenced in County Exec Woody's response above?

Have the nine sites been identified? Where does Roane County stand?

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To date, the failure to expand Medicaid / TennCare has cost the State of Tennessee ? in lost federal funding.

What specifically are the

Minutes

I voted NO on the

4 cents of the tax increase

You first provided the

Making a motion and

While I could agree, the

Ron Woody did run on

Education matters.. If you

The most successful counties

Randy

2012 Budget

Correct in article/2012Budget/Incubator

Thanks, Ron

Well done...

Incubaor Programs --- Gov Haslam's comments

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