CLEVELAND, Tenn. – With no more borrowing power left at the current property tax rate, Bradley County commissioners are exploring ways to increase both revenue and borrowing power.
The County Commission’s Finance Committee on Tuesday heard county school officials say they need an additional $6.8 million for the next budget year that begins July 1.
BRADLEY TAX FACTSProperty tax rate: $1.79 per $100 assessed valueFire tax for urban area outside Cleveland: 40.7 centsRural fire tax: 33.56 centsSource: Bradley County government
The county also faces budget pressures for future industrial needs, committee members said. That could mean another $2 million added to the next budget.
Committee members discussed the potential for a property tax increase or creation of a wheel tax.
“In my last campaign, people had questions about the debt,” cautioned veteran commissioner Mel Griffith. “If there is a tax increase it will be the biggest issue in the next campaign.”
But before any action is taken, committee members said, they need to know exactly what future new revenue will look like, including that from new corporations such as Wacker Chemical, Amazon and others.
“We were elected to make the tough decisions,” committee Chairwoman Connie Wilson reminded members.
TodayMarch 9 the process for writing the 2011-12 county budget begins with a meeting of department heads.
County Trustee Mike Smith had some good news, however. He announced Tuesday that county property tax collections from October 2010 through February 2011 increased over the previous period.
The county collected an increase of $438,589, Smith said, for a collection rate of 90.2 percent of property tax payers compared to 89.6 percent the previous tax season.
Smith also reported interest on county investments exceeds the budgeted amount by $86,587. Interest income could exceed the budgeted amount by $150,000 by the end of the fiscal year July 1, he said.
County school board Chairman Troy Weathers and schools Director Johnny McDaniel told finance committee members that $6 million is needed to fix building problems at Lake Forest Middle School and $2 million for an eight-classroom addition at Walker Valley High School. They said the school board also is asking for $400,000 each for two future school sites.
The board expects to come back next year seeking money to replace Lake Forest Middle School’s multibuilding campus with one classroom building, they said. That estimate is about $13 million.
“It looks like we are not ready to vote on a tax increase,” Commissioner Robert Rominger said. “I think people are going to ask what they are getting for their money.”
Rominger and Commissioner Louie Alford warned against spending more on the current Lake Forest buildings.
“There’s no telling how much has been spent the past 10 years to get back into bad shape again,” Alford said.
Meanwhile, Rominger said he would like to see the county spend down more of its current debt and create some borrowing room.