No-Tax-Hike Budget Approved

August 18, 2005 By PAUL ROY
Independent Herald Publisher

HUNTSVILLE - For the sixth straight year, Scott County Commissioners have approved a new fiscal year budget without an increase in property taxes.

That action came Monday night as the commission met in regular monthly session at the County Office Building.

The budget adoption procedure actually involved approval of three separate resolutions­ as votes were taken on the tax levy, budget appropriations, and the adoption of all departmental budgets.

Scott County’s property tax rate for the 2005-2006 fiscal year will be $2.40 for property located outside the Oneida Special School District and $2.63 for property inside the district.

A breakdown shows 55¢ of the tax rate being earmarked for the County General Fund portion of the budget; $1.00 for the General Purpose School Fund; 57¢ for the Rural School Debt Service Fund; 28¢ for the county’s General Debt Service Fund; 33¢ for the Oneida Special School District (OSSD) Fund; and 47¢ for the OSSD’s Debt Service Fund.

Property owners outside the school district do not have to pay the OSSD debt service taxes and those with property inside the district do not have to pay the county’s rural school debt service tax.

Murphy said that while the Budget Committee had a difficult time crunching the numbers to come up with a budget with no property tax increase, it was actually an “easy budget cycle.”

He had praise for the commission’s three-member Budget Committee chaired by Jeff Watson and all of the county’s department heads for helping put the budget together.

Commissioners Hertis Phillips and Watson both singled out Jim Reed, director of the Scott County Ambulance Service “for what they did to help with this budget,” Phillips said. Watson later stated this budget would not have been possible “without the Ambulance Service.”

One commissioner informed the Independent Herald that money transferred from the Ambulance Service to the County General Fund was largely responsible for balancing the budget and preventing a tax increase.

After the budget adoption votes, Budget Committee Chairman Watson recognized the Ambulance Service as well as the work of County Mayor Dwight Murphy and County Finance Director Keith Jeffers, who “did some research” and came up with some state funding of which the Budget Committee had not been aware. He also stated that funds generated by the regional landfill also played a big part in making the no-tax-increase budget possible.

Watson said that although there were “a couple of times that we didn’t agree” on certain things, the Budget Committee finally came together. He also stated that if there’s something in the budget that the commission doesn’t like, it can always come back next month an amend it.

Commissioner Watson indicated that it’s unlikely that Scott County can transition into a new budget cycle (next year) without a tax hike, if for no other reason than the multi-million jail construction project which looms ahead.

Echoing those remarks, Murphy also warned the commission that should the town of Huntsville win its lawsuit against Scott County it would “make a big hole in the budget” and result in having to cut services “because you can’t raise taxes in the middle of the year.”

COMMISSION RESPONDS TO LAWSUIT

Late in Monday night’s meeting, commissioners approved a resolution in opposition to Huntsville’s Mayor and Board of Aldermen’s recent lawsuit attempting to collect sales tax revenues in annexed areas of the town.

The resolution, which was drafted and read aloud by County Attorney John Beaty, authorizes the county mayor and county attorney to “vigorously defend” the lawsuit and, if the need arises, “employ additional counsel” to defend the county’s position “and to bring causes of action” against the town “relative to the annexations at issue”—In other words, file a counter-suit.

The resolution follows here in full:

“(RE: Town of Huntsville v. Scott County, Tennessee, and the Tennessee Department of Revenue—Scott Chancery No. 9448).

“Whereas, the Town of Huntsville has filed the above-referenced cause of action in the Chancery Court for Scott County, Tennessee; and

“Whereas, in its Complaint, the Town of Huntsville alleges that the Tennessee Department of Revenue has been misdirecting local tax revenue from Huntsville to Scott County in violation of state law; and

“Whereas, among other things, the Town of Huntsville is asking the Court to ‘disgorge’ certain tax revenues received by the County from the Department of Revenue which originated from three (3) separate annexations by the Town of Huntsville; and

“Whereas, the Scott County Board of County Commissioners is of the opinion that the tax revenues at issue were properly collected and distributed by the Department of Revenue; and

“Whereas, the Board is also of the opinion that certain issues exist relative to the legality of the annexations at issue in this lawsuit which could give rise to claims, or counter-claims, against the Town of Huntsville;

“Now therefore, be it resolved that the Scott County Board of County Commissioners goes on record in opposition to the positions taken by the Town of Huntsville and directs County Mayor Dwight Murphy and County Attorney John Beaty to vigorously defend said lawsuit; and

“Be it further resolved that County Mayor Dwight Murphy and County Attorney are authorized to employ additional counsel, if they deem it to be necessary, to assist with the defense of the lawsuit and to bring causes of action against the Town of Huntsville relative to the annexations at issue.”

IN OTHER BUSINESS

During the course of Monday night’s meeting the commissioners approved a total of 18 resolutions dealing with various facets of county government ranging from filling vacancies on boards to funding major appropriations.

Those actions were:

• Approved a capital outlay note to be retired through the Rural Schools Debt Service Fund to purchase eight new school buses ($471,760) and provide the finishing touches to the new Winfield School, projects which include a gym floor, kitchen equipment, a canopy, school sign and fencing for a total of $388,182;

• Approved a capital outlay note to be retired by Scott County Road Department to pay the county’s 25% share in a state bridge replacement project on Jeffers Rd. (around $200,000), as well as the purchase of two tractor-mowers;

• Approved the creation of a governing board and executive board for the operation of the Scott County Help Center in the old Capitol Hill School building. Board members are Co-Chairpersons Verhonda Wilson and Vivian Smith, Secretary Clara Terry, Treasurer Haley Terry, Commissioner Odeva Byrd (all of whom are also members of the Executive Board), along with Commissioner Jeff Watson, Kerry Hamby, Linda Cross, Wayne Shoemaker, Verda “Buddy” Cope, Jr., Jill Potter, Terrie Sue Cross, Tom Stephens, Bobby Massengale, Paulette King, Johnnie Lewis and Dwight Murphy;

• Authorized County Finance Director Keith Jeffers to develop a “Request for Proposals” for persons interesting in leasing the building in Oneida which formerly housed the offices of the Scott County Industrial Development Board and Chamber of Commerce, with the proposals to be brought back to the Finance Committee and full Board of Commissioners to make a decision on leasing the building;

• Voted to approve low bids submitted by High Point Electric ($8,000) to wire the Help Center, and Ag Solutions ($5,580) for a waste oil heating unit for the Help Center, with funds coming from the grant which helped establish the center;

• Voted to advertise in the newspaper for land in the Robbins area which is available for sale as a site for a new Robbins Elementary School;

• Voted to approve Stephanie Duncan as a full-time employee of the Scott County Ambulance Service at the request of Scott County EMS Director Jim Reed;

• Voted to allow Sheriff Jim Carson to hire two part-time deputies to fill positions left vacant by deputies currently receiving worker’s compensation and who are not on the payroll;

• Approved a resolution designating August 29, 2005 as “Vivian Smith Day” at the Scott County Fair, and recognizing her for her various achievements, which include having earned Level V Master Status as a member of the Scott County Board of Education; having received the National School Board Association’s Recognition Award; having co-chaired the Cancer Society’s Relay For Life; and for having served as Scott County’s Solid Waste Director until her retirement in 2003. Mrs. Smith, who appeared before the commission with her mother, Mable Butler, husband, Richard “Dick” Smith, and son, Richard J. Smith, will be honored at the opening night of the Scott County Fair for her “tireless efforts in community service, volunteerism, and her deep concern for the less fortunate,” according to the resolution;

• Authorized County Mayor Murphy to execute a contract with the Tennessee Department of Transportation for annual airport maintenance funds totaling $13,500;

• Approved the appointment of Dave Cross to the Solid Waste Board, replacing Alice Laxton who resigned;

• Approved the appointment of Mary Etta Neely to a vacant seat on the Clinch-Powell Regional Library Board;

• Authorized County Mayor Murphy to sign a deed transferring a small strip of land (less than an acre) at the Scott County Airport for the expansion of QCB, a local industry, as well as giving the Industrial Board the authority to negotiate the sale of the property;

• Voted to refer back to the Finance Committee for further study the creation of a central maintenance system for Scott County. And, by a separate vote, the commissioners also referred back to committee action the height zoning ordinance for the Scott County Airport; and,

• Heard reports from: (1) Commissioner Rick Keeton about an ongoing study by the Insurance Committee concerning health coverage for county employees; (2) Commissioner Rick Burke who talked about discussions for proposed improvements to Burchfield Elementary School; (3) Commissioner Leonard Bertram concerning discussions held about a new facility for Robbins Elementary School; (4) Commissioner Jeff Watson on efforts of the Solid Waste Planning Board to develop a 10-year plan for Scott County; (5) County Mayor Murphy on maintenance workers having already installed 24 replacement road signs in an ongoing project; (6) Verhonda Wilson, who informed the commissioners that the recent Scott County Auction-Telethon had raised $27,087 for the Children’s Center; and (7) Scott County Director of Schools Mike Davis on the status of the school system at the start of the new school year, as well as a progress report on student test scores, the debut of a Scott High School student publication, and plans for an open house event at the new Winfield Elementary School sometime during the month of September.

news@ihoneida.com

Enjoy the Independent Herald? Have it delivered to your door! Click here for details.