Oak Ridge North City Council unanimously approved its fiscal year 2026-27 budget and tax rate on Aug. 24.
Breaking it down
City Manager Heather Neeley said the new tax rate of $0.4615 per $100 valuation represents a decrease in the city's maintenance and operations rate and an increase in the interest and sinking, or debt service, portion of the tax rate. According to agenda information, the approved M&O rate for FY 2026-27 is $0.325 per $100 valuation, and the debt service rate is $0.1365 per $100 valuation.
Neeley said at the meeting the change to the debt service rate corrects a previous issue relating to funds taken out for the city's Tax Increment Reinvestment Zone since 2022. A TIRZ is a tool which allows a taxing entity to use projected future gains to pay for public improvements, according to the city.
The 2026-27 budget is set to have $6.85 million in revenues and $6.4 million in expenses, according to information from the city.
Among changes in the budget, Mayor Paul Bond said at the meeting funds for Flock cameras previously included in the budget will not be included for the next fiscal year.
Neeley said they will be removed after Oct. 1 when the current contract is up. They were previously funded through a grant for about $20,000, according to discussion at the meeting.
What you need to know
The public hearing had been set for a 2026-27 tax rate no higher than $0.5327 per $100 valuation, which Neeley said on Aug. 10 could be reduced on the date of the hearing.
Among taxable values in the city, in 2025 residential taxable value went up but commercial came down, Neeley said.
About 11% of the city’s budget is residential property tax, which on its own covers 25% of the police department costs, she said.
Sales tax revenue provides most of the city's revenue, at about 60%, and other revenues such as fees provide the rest of the revenue, she said.
The city has about $3.5 million in sales tax revenue annually.
Officials said the city must also plan for future expenses such as work needed on water wells.
“They are old, and there’s going to be necessary work to do on them, and that’s going to cause the city to incur more debt,” Bond said at the meeting. “The wells can’t keep up with the demand in their current state.”
