Commissioner Shannon Whitfield outlines new charges for Walker County citizens
Walker County property owners will be assessed a heavy new fee over a three-year period in order to pay off a debt to Erlanger Health Systems that is approaching $10 million.
The special district allows for a special assessment to be charged on each parcel of property, beginning Oct. 1, 2017. The annual fee will be 0.14 percent of the fair market value, up to a maximum of $1,000. The special assessment on a home with a market value of $75,000 would be $105. Property valued at $200,000 will be charged a $280 fee.
New Sole Commissioner Shannon Whitfield said Erlanger "wants their money and they want it now."
He said at a public hearing in LaFayette on Thursday night, "Folks, I'm out of time. I'm out of resources. I'm out of money" to deal with the debt built up in the Hutcheson Hospital fiasco - except for the planned Public Health Facilities and Services fee.
He added, "Erlanger is right. We do owe the money. We've got to do this because they are serious about this."
He then described the new fee, saying, "Regretfully here's what we've got to do."
Walker County taxpayers will also be dealing with a two mil rise in the property tax rate.
And they will be asked on Nov. 7 to approve a one-cent sales tax increase - moving to eight percent - for transportation expenses.
There is also a new public safety fee that replaces the former fire fee and will bring increases for some taxpayers.
The taxes, including the new Erlanger fee that was dubbed the Bebe Heiskell Tax by one resident, will be due five days before Christmas. After that, there is a one percent interest charge per month on unpaid taxes and fees.
Commissioner Whitfield said Erlanger earlier Thursday rejected an offer of $625,000 per quarter "in an hour and one minute" and was "turning up the heat." He said Erlanger officials, armed with a Federal Court judgment, want to be paid $1 million every 90 days.
He said Erlanger has scheduled another hearing in early September in Federal Court in Rome and could make good a promise made by former Commissioner Heiskell that the debt could be secured by a seven mil rise in property taxes.
The new Erlanger fee should bring in $2.5 million per year, it was stated.
It is set to go away on Dec. 31, 2019.
With the property tax rise, the owner of a $100,000 house would pay $65.93 more.
As he has at five prior public hearings on the tax increase, Commissioner Whitfield said he inherited a financial calamity from the prior 16-year administration.
He said he was facing a $7.5 million deficit and had $3.5 million in unpaid bills on his desk.
Commissioner Whitfield said the prior administration "learned a long time ago that if you don't raise taxes people won't show up. Instead, they just added to the debt."
He said on one of the last tax anticipation notes taken out by the Heiskell administration it paid $255,000 in upfront fees and had a 4.5 percent interest rate, which he said was over three percent higher than other governments were paying.
He said the county's debt - not counting Erlanger - is in the $70 million range with $1.7 million in annual debt service. He said 16 years ago the county's debt was $11 million. He said at that time it had $3 million cash on hand, but now it has "no rainy day fund."
Commissioner Whitfield said the prior administration would have a three-page budget summary. His is 74 pages and shows comparative spending for each area of the budget going back several years.
He said when he finally looked at county audits for 2014 and 2015 "I thought I was going to get physically sick. I thought I was going to puke. We've all been asleep at the wheel."
The commissioner said three experts from the state county government association came in to help. He said after three days they surmised "this was the worst they had ever seen."
He said spending last year was $26 million. After starting in the fourth month of the fiscal year, his administration thus far has spent under $20 million. But he said the final total may be in the $24 million range.
He has cut the commissioner office spending by some $400,000, he said.
Commissioner Whitfield said the tough job remains of cutting requests from county offices and departments by over $4 million by Oct. 1 to have a balanced budget. Projected revenues are $22,736,000. He vowed it will be balanced.
Walker County expenses are $2 million a month, including $1 million in payroll.
He said the new public safety fee would mean that money would no longer have to be drawn from the general fund for fire and emergency management. He said the landfill had its first profit in years in June even though its five top customers "went back to Tennessee."
Concerning scrutiny of county spending, he said the board of the Development Authority voted for an audit. But he said then-County Attorney Don Oliver stopped it after it had been started.
Commissioner Whitfield said, "I didn't do any of this. This is my inheritance. I'm here to clean it up."
Asked if anyone could hold the last administration accountable, he replied, "That is a good question for your DA."