The county will raise property taxes after all - bringing in funding for schools, a $45 million new sewage treatment plant, and expanded workhouse and other needs, County Mayor Jim Coppinger announced Tuesday morning on the steps of the courthouse.
"The need is now," he said to a large group gathered for the announcement.
The recommendation to keep the prior tax rate rather than dropping back to the certified tax rate (after the reappraisal) would bring in $25.5 million per year - enough for bonds for the sewage plant and $180 million for the schools and other needs.
"Hamilton County is on fire. Now is the time to meet the needs," he said.
County Mayor Coppinger said he has been discussing the move with County Commission members and he is confident it will pass.
A public hearing will be Wednesday, Sept. 6, at 8:30 a.m. at the County Commission meeting room at the County Courthouse.
County Mayor Coppinger said he had been discussing school needs with new Supt. Bryan Johnson. He said there are needs for new buildings, expanded buildings and for maintenance. He said $100 million will go for school needs, including fixing roofs and athletic facilities.
The new sewage plant will go in the fast-growing northeast sector of the county and be operated by the Hamilton County Water and Wastewater Treatment Authority (WWTA). The county mayor said that sector is due to get 10,000 new residences by 2021.
He said the county would save $43 million in treatment fees and in "unnecessary storage tanks." The sewage is now sent to the city's Moccasin Bend plant.
Another benefit, the county mayor said, would be to assist the WWTA and city of Chattanooga in meeting federal EPA mandates for stormwater runoff and sewage disposal. He said the majority of the debt service for building the plant will be repaid from the WWTA ratepayers who use the treatment plant.
WWTA Executive Director Mark Harrison said, "The WWTA prides ourselves on being good stewards of dollars invested in the work we perform throughout the county. The funds from this tax increase will allow the northern end of the county to continue to grow both now and in the future."
He said the WWTA is prioritizing needs for work throughout their service areas. "A drive through portions of our service area is an eye-opening experience," said Mr. Harrison. "From broken and aging pipes to providing additional infrastructure that will allow growth, the WWTA is doubling our efforts to meet the needs of an ever-changing community." We are excited to partner with the building officials, developers and our customers in efforts that will prepare our community for the future."
The county mayor said the county jail on Walnut Street has reached the end of its useful life. He said funds would go toward adding beds at the workhouse at Silverdale and improving facilities like the dining area and laundry.
He said the county mayor has been over corrections, but he plans to turn the workhouse operation over to the sheriff.
County Mayor Coppinger said since the passage of a balanced budget, "several opportunities have developed that will require additional funds. These opportunities include four major areas: Economic Development, Education, Public Safety and Infrastructure."
He said he was calling on the County Commission to maintain its current property tax millage rate at $2.7652, stating, "Tomorrow, I will present two resolutions to the County Commission relating to the millage rate: The first will be to reduce the county’s millage rate to the certified tax rate of $2.4976. This resolution is a result of the every four-year property reappraisal process and is required by the state of Tennessee. The second resolution will be to reset the millage rate back to $2.7652. This will be an increase of 26.76 cents."
County Mayor Coppinger said he had numerous times with new HCDE superintendent Johnson, and the two leaders agree they need to start meeting some of the school system’s building needs immediately. He said, "A significant amount of the additional revenues will be used toward building 1 or 2 new schools, expanding capacity at schools in high-growth areas and addressing some of the most pressing capital needs at several schools with new roofs or major roofing repairs, energy efficient windows and renovation of athletic tracks and athletic facilities." He said the specific projects will be determined by the Board of Education.
County Mayor Coppinger said, "I have discussed these opportunities with several of the County Commissioners over the last few weeks, and I believe now is the best time for us, along with the school system, our business leaders, our economic development team, and the community to meet these needs."
The County Commission on June 21 had rejected a property tax increase and approved a $691.5 million budget by a vote of 8-1.
Commissioner Joe Graham earlier had discussed the commission keeping the millage rate the same as now after the rate was lowered due to the property reappraisal. He insisted that would not be a tax increase, but other commissioners said it would be.
Commissioner Tim Boyd cast the only no vote earlier. He said new county school superintendent Dr. Bryan Johnson needed time to study it.
County Mayor Coppinger earlier said, “This has been a difficult budget year, despite financial challenges, we have again presented a budget to taxpayers which delivers additional funding for government, education and public safety needs.
“We operate government in a fiscally conservative manner that taxpayers expect. This is why we have been able to deliver a no-tax increase budget for seven years in a row, while at the same time maintaining our AAA bond rating from the three top bond rating agencies in the country. These efforts enable us to borrow money at a low rate saving taxpayers millions of dollars.”
At the time, he said 66 percent of Hamilton County’s budget will go to fund the education system. The Hamilton County Department of Education’s budget is now $425.7 million. This is an $8 million increase over last year.