Oak Ridge city manager unveils budget focused on staff retention and infrastructure, council set to consider readings

The city manager presented his first proposed budget for Oak Ridge, telling the council the plan keeps the current tax rate while prioritizing workforce retention and targeted capital investment. "I am excited to be able to present my first budget as your city manager," he said, outlining proposals that include a 2% step increase plus a 3% cost-of-living adjustment and about ten new full-time positions and other reclassifications.

The manager said the package aims to align the budget with the city's strategic plan: restore staffing where needed, improve infrastructure reliability and make strategic capital investments. He listed specific capital items included in the proposal: $250,000 each for animal-shelter due diligence/land purchase and fire station 2 site work, $50,000 for additional pool analysis, $990,000 for renovations to the Badger Building (to house parks & recreation and CVB offices), and additional paving funding that raises annual paving from roughly $1.2 million to about $1.7 million.

On water infrastructure, staff reported a recent award of a $20,000,000 low-interest loan to cover remaining construction costs for the new water plant, and the manager said that the city will conduct a full water-rate study as part of its long-term plan. "Without those low interest loans... those are the things that do keep the water rates in line," the city manager said.

Council members questioned how many of the proposed positions are conversions from temporary or contract roles; staff answered that seven golf-course contract positions will be converted (two full time, one part time and four seasonal) and two temporary janitorial roles will become regular full-time positions. The manager said the compensation committee recommended the step and COLA increases and urged council discussion and approval.

Finance highlights in the presentation showed general-fund revenues up about $2.3 million (roughly 4.1%), driven largely by sales taxes, with modest projected property-tax growth. The manager said the overall proposed budget rises from roughly $56 million to about $58 million across funds, with the general fund using some fund balance ($4.85 million) for capital needs while preserving a healthy year-end balance.

Council and staff clarified next steps: the manager said the budget ordinance will be considered on first reading on the 3rd and on second reading on the 10th. The council is scheduled to deliberate and vote after the readings.