Despite a pending lawsuit with General Sessions and
Circuit Court Clerk Lisa Niles and a failed payment
in lieu of taxes agreement with Tate & Lyle, Loudon
County Commission can boast hallmark achievements in
2015, like holding the line on property taxes,
enticing additional industry and making progress on
a jail expansion.
“I think the commission’s done a good job with the
budget, sticking within our limits,” Commissioner
Matthew Tinker said. “I’m happy to see some of the
new businesses that are coming in and the expansion
of others. I hope that that’ll bring in some others,
good tax revenue in the future and hopefully some
new people to the community and better jobs for the
ones that already live here.”
Being able to make budget cuts where necessary and
avoid a property tax increase is what Loudon County
Mayor Rollen “Buddy” Bradshaw said is the biggest
accomplishment for the still relatively new group of
county officials that include a mayor and six
commissioners who will soon complete their first
full year in office.
“It was definitely a learning process,” Bradshaw
said.
In a June meeting, commission approved a $16.6
million county general fund expense budget that
included no property tax increase and a 2
percent across-the-board raise for county
employees, excluding elected officials.
“If you look at the cuts we made, we really —
just not me but the commission as a whole, I
think we’ve done what we’ve promised to do,”
Bradshaw said. “We’ve cut that spending back,
and we’ve recognized what was necessity and what
was luxury, and I think we’ve trimmed the budget
back to that. I think that’s something we also
promised the taxpayers, and I think that’s
something that we were able to accomplish this
year.”
Bradshaw said avoiding a tax increase will
continue to be a personal goal. He and the
county’s budget committee will begin preparation
for the next fiscal year in March.
Employment opportunities
Bradshaw said an ongoing challenge for officials
is to bring more businesses into the county,
which, in turn, will create more jobs for
residents locally.
Earlier this year, the Loudon County Economic
Development Agency Board of Directors and the
Joint Economic and Community Development Board
Development Agency met to approve two payment in
lieu of tax agreements with VanHooseCo and
Morgan Olson, which at the time was called
Project Moon.
“I’d like to get it to a point where ... anybody
in Loudon County that’s looking for a job will
be able to find a job, and I think we’re getting
close to that,” Bradshaw said.
Per a 50 percent, 10-year PILOT agreement,
Morgan Olson will need to reach at least 80
percent of the projected 500 jobs to come from
the company’s planned expansion by the time the
period ends. Morgan Olson is expected to invest
$45 million, with $10 million in real property
and $35 million in personal property. The
agreement will begin Jan. 1 and carry through
Dec. 31, 2025.
VanHooseCo was also granted a 50 percent,
five-year PILOT agreement. The company plans to
invest $12 million in personal and real property
and hire 65 employees. The project will generate
$2.4 million in payroll and $630,000 in retail
sales each year at maximum employment.
“From my opinion I think that is great,”
Commissioner Henry Cullen said about Morgan
Olson. “They’re paying ... top pay, and they’re
going to employ 400-500 people? That is great
for the county.”
While those agreements passed muster, the PILOT
with Tate & Lyle fell through in September.
Bradshaw said county officials have had no
discussions with the company since the failed
deal. Tate & Lyle and the county have been in an
ongoing dispute related to the company’s
property tax assessment.
“I think the next step will be going to court,”
Bradshaw said.
Decisions loom
Cullen said he was pleased with the progress
made by the Loudon County Corrections
Partnership Committee in considering a future
expansion at Loudon County Jail, noting the
committee was now taking a look at the design
and cost of a potential project.
“How far that goes after we find the price tag’s
going to be interesting,” Cullen said. “... With
the jail comes a price tag, and that’s going to
be the issue. If it starts creeping up there
$16-$20 million, there’s going to be some people
pushing back on that in my opinion.”
Bradshaw said he planned to meet with Tennessee
Corrections Institute this week in an attempt to
avoid decertification. The jail committee will
meet in March, and Bradshaw said commission will
meet sometime shortly thereafter to consider
funding an expansion. A decision will likely
need to be made within 12-24 months, otherwise
the county could face jail decertification, he
said.
“I think if it was to come down to some sort of
an increase, then I think the important thing to
remember — and I think commission will agree
with me on this — is that we put that sunset
clause into it,” Bradshaw said. “If we are
forced into this, then however we choose to fund
it — which I guess tax increases are probably
the fairest and easiest — but I think it’d be
important we put a sunset clause in it where the
year after this debt would be paid off. The tax
money — at least the greatest line share of it —
would go back to the people.”
During the November meeting, jail committee
members voted to spend an hourly fee of up to
$60,000 for civil engineering firm Michael Brady
Inc., for program verification and conceptual
designs at the current Justice Center property.
“Any tax increase is going to be just what we
need to cover what we have to do,” Cullen said.
“We’re not looking to raise taxes. We’ve heard
that message loud and clear from the people, but
it all depends where this jail goes. If you
don’t have six commissioners say yes they
support the expansion of the jail, it’s over.”
The court date between Bradshaw and Niles is
scheduled Dec. 10-11 at Loudon County
Courthouse. Niles has asked for six new deputy
clerks at a base salary of $31,000, and pay
increases for more than 15 full- and part-time
employees in her department. If Chancellor Frank
V. Williams III rules in favor of Niles, the
county will be on the hook for meeting her
requests.
“That would certainly put an extra burden on the
amount of money that we have coming in, so we
would need to — there’s only two ways to handle
it,” Tinker said. “You either make cuts in other
areas to pay for that or you raise property
taxes.”
When asked if there was additional room to make
cuts in the budget, Tinker said, “If we could
have cut more out of the budget and left people
still in good shape then that would have been
the responsible thing to do at that time. So if
there are cuts that had to be made going into
the future, it would definitely affect services
that the county provides.
“So do you want to lose some of the services and
cut back on manpower or raise property taxes?”
he added. “Those are kind of the only choices.”