Cleveland Councilman Suggests Property Tax Increase For Education Funding; Wacker Asks $1 Million Tax Abatement For Expansion Project

  • Tuesday, February 7, 2012
  • Tonya Brantley

Cleveland City Councilman Bill Estes addressed the Bradley County Commission during a voting session Monday night to propose a "Plan B" for education funding - a penny property tax rise rather than a new wheel tax.

Recently, the commission proposed the wheel tax resolution as a solution to funding requests for capital projects by the county school system. The purpose of the resolution is to call a referendum on the question of whether a countywide motor vehicle tax (of $32) should be levied for Bradley County.

According to the resolution draft, all of the proceeds of this tax shall be deposited in the Education Debt Service Fund, which will be created and maintained by the County Clerk for the purpose of education capital projects.

Councilman Estes said a one-cent increase on property taxes would be cheaper than imposing a county wheel tax. He said, “I’m asking the County Commission to commit to making Bradley County schools at least average in the state. Bradley County schools rank 132 out of 136 per pupil expenditure in Tennessee. That’s embarrassing, almost inexcusable. Cleveland City schools ranked 32 out of 136 last year.

"The Bradley County school system has a wonderful director and phenomenal principals. I would encourage you to reward them and not punish them by continuing to try to get blood from a turnip.”

During a work session earlier this month, Bradley County Mayor D. Gary Davis gave a report to the commission on a summary of estimated wheel tax revenues using a spreadsheet to take a closer look at the numbers using data from the Tennessee Department of Safety, motor vehicle division registration statistics from July 2010. The data in the report showed the amount of revenue collected from the wheel tax would be less than the amount requested by the school system.

According to the data provided by Councilman Estes, the assessed value of Bradley County properties in June 2011 per the assessor’s office is $1,956,567,679. One cent on the property tax generates $195,657.

Commissioner Terry Caywood thanked Councilman Estes for his suggestion stating, “Many of the concerns you addressed are mine as well.”

Commissioner Connie Wilson made a motion to accept a resolution approving a modification to the payment in lieu of tax (PILOT) arrangement with Wacker Polysilicon North America, LLC. Wacker has previously agreed to acquire property in Bradley County and construct and operate a manufacturing facility and certain other real and personal property improvements resulting in the creation of in excess of 500 jobs and capital investment of $1 billion.

Wacker is contemplating an additional investment in an expansion project, resulting in a total capital investment of approximately $1.8 billion and requested the county provide a one-time $1 million reduction in the company’s PILOT obligations to the Industrial Development Board in connection to the expansion.

Wacker Site Manager Dr. Konrad Bachhuber addressed the commission stating, “We are asking for a one-time tax abatement. This is to compensate for unexpected infrastructure costs.”

Commissioner Ed Elkins suggested including this in the long-term plan resolution he proposed that the commission recently passed. He said, “I think this is a small investment for what Bradley County will receive.”

The commission unanimously approved the motion.

Chairman Louie Alford made the comment, “Another great day in Bradley County” which was followed by applause from the commission and the audience.

In new business, the commission unanimously approved a resolution to request a private act of 2012 establishing concurrent jurisdiction of the courts. To amend the private act, the commission must accept and approve a recommendation to be sent to state legislators, who then introduce a bill to the state legislature. If the amendment to the private act is approved, it is sent back to the County Commission for acceptance and approval a second time.

Amending the private act would give the General Sessions Court the power to transfer to the Circuit Court docket those cases in which they exercise concurrent jurisdiction. And likewise, give the General Sessions Court the authority to accept transfers in those areas which are already given them by state law or by private act.

Also in new business, a resolution passed to change of meeting time of the third Monday from 10 a.m. to noon. The finance committee will hold a meeting on Wednesday at noon in the mayor’s conference room in the post office annex building.

The Bradley County Commission will hold its next work session meeting next Monday at noon.

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