Rocky Top OKs new property tax rates
In a special session Monday evening, the Rocky Top City Council gave final approval by a vote of 4-1 to raise property taxes for the 2024-25 fiscal year from $2 to $2.0755 per each $100 of appraised value on all property on the Anderson County side of the city.
This was the second reading of Ordinance 591, which was passed unanimously on first reading during the monthly council meeting Aug. 15.
Monday’s vote came after a short public hearing on the proposal, which drew little interest from residents. The council had previously passed the $2 rate in June.
In this same ordinance, the tax rate for residents in the Campbell County portion of the city drops to $1.1668 per $100, down from the original $2.
City officials said the changes in the tax rates were dictated by the Tennessee Board of Equalization to reflect this past year’s reappraisal of property values in Campbell County.
The change for Campbell County residents was required to keep each property’s total tax bill the same as that of the previous year even as assessed property values were increased by the reappraisal.
With that, City Manager Mike Ellis said the state required the city to raise the tax rate on residents in the Anderson County part of the city to “keep the tax rates equitable.”
Resident Sharon Kinser was the only person to appear at the hearing, and she voiced her opposition to raising the tax rate for residents living in Anderson County.
“Why raise the Anderson County side?” she asked the council members.
“ You’re telling me that somebody else is telling you to do it, but you don’t know why?”
Mayor Kerry Templin acknowledged her statement, but said the city had no choice.
“I wish I could explain this better,” he told her.
Later, the mayor said of the tax increase, “It’s going to increase our revenues, but it’s not going to be a windfall.”
But city officials couldn’t explain -- or even understand -- why raising taxes on the Anderson County side was necessary, because that will require those property owners to pay higher taxes this year than they did last year. Anderson County did not reappraise property this year.
Councilman Zack Green cast the only “no” vote Monday night, although he had voted “yes” on the measure on first reading Aug. 15.
“I can’t in good conscience vote in favor of this,” he told his fellow concil members as they prepared to vote on the measure.
He suggested that city city look at cutting some expenses rather than raising property taxes.
“I don’t know why we should burden an impoverished community [with higher taxes],” he said.
Green suggested that the city drop its plans to buy the old Martin Funeral Home property at 225 S. Main St. for $125,000 to create the city’s first public downtown parking lot.
The council approved the purchase in March.
“There is no public downtown parking,” Templin said.
He said if the downtown is going to continue to grow, adding businesses that generate sales taxes for the city, there needs to be more parking.
“I do not like [the city] living off of property taxes,” he said. “I prefer living off of sales taxes.”
The ordinance was rushed through so the city can send out tax bills by the end of August.
In other business during Monday’s special meeting, the council passed on second and final reading Ordinance 590, which raises water and sewer rates throughout the city.
That measure also was passed on first reading on Aug. 15.
The ordinance effectively raises water and sewer rates by 3% each for the current fiscal year.
The City Council approved increases of at least 2.5% each on water and sewer services as of July 1 during its June meeting, and said the actual amount would depend on the national consumer price index that was released on June 30.
Ellis said in July that the official CPI for June was determined to be 3%, which is then what the city used to adjust the water and sewer rates for the new fiscal year. The year began July 1 and runs through next June 30.
The increase was initially passed by way of Ordinance 587, which was approved on second and final reading on June 20.
The ordinance passed Monday night adds some language to the original ordinance approved in June to include commercial properties.
The vote on the ordinance in June was 3-0, with councilmembers Mack Bunch and Jeff Gilliam, along with Templin, approving the measure. Councilmembers Green and Stacy Phillips were absent.
Before the June 20 council meeting, the council held a public hearing on the proposed increases, but no one showed up to voice any opinions about them.
But Monday evening, Kinser also expressed disfavor with the water and sewer rate increases, citing the high bills she pays for her home.
The increases follow similar rises in water and sewer bills that took place last year as the city took steps to raise the rates to account for higher costs of providing the services.
that city officials believe are in line with consumer price increases.
These new rate increases were approved on first reading of Ordinance 587, passed by the City Council on a 4-1 vote during the council’s May 16 meeting.
Gilliam made the motion to approve the higher rates, and the motion was seconded by Phillips. Bunch and Templin voted “yes,” but Green cast the lone “no” vote.
Green was the only councilmember to vote against bigger water and sewer rate increases last year.
On Aug. 28, 2023, the council voted to raise water and sewer rates on average $30 to $50 a month for most customers beginning Oct. 1, 2023.
Green, who was then also the only “no” vote on the ordinance, was also the only person to speak during the hearing in opposition to the rate increases.
“We live in an impoverished community,” he said at the time. “People can’t afford this.”
Templin has said the water and sewer rate increases are necessary to keep up with inflation, which is causing operating expenses to rise.
Rocky Top had already been identified as having the highest water and sewer rates in the region, according to a study by the Clinton Utilities Board that was presented to the Anderson County Commission in 2022.
The city buys its fresh water from the Anderson County Water Authority, but distributes it through its own system to residential and commercial customers.
Rocky Top operates its own wastewater treatment plant and collection system, which is now in the middle of a major upgrade that is costing millions of dollars. Most of that is being paid from grants, however.