Citizens Oak Ridge

Letters to the Editor

Bond referendum: Financial crossroads

6/1/2007

To the Editor:

Oak Ridge is facing a financial crossroad at a time when it least can afford a serious misstep. This election cycle provides a unique opportunity to make significant changes in leadership and to instruct the leadership that the voter and taxpaying citizen are paying attention.

Gratitude to the grass roots organization, Citizens Oak Ridge (citizensoakridge.com), for their work to provide voters an opportunity to voice opinion on adding to the over-burden of debt faced by the city. Our per capita indebtedness is already four times that of Knoxville. The city is prepared to spend money including debt totaling $10.5 million that otherwise could be used to reduce existing obligations.

Much has been said about flat to declining retail sales in Oak Ridge, but little is being acknowledged as to the cause of this decline. Oak Ridge lost at least two auto dealerships (Mazda and Honda) over the last few years, with auto sales and service one of the primary areas where shoppers are being forced to leave the city to spend their dollars. Nothing on Crestpointe will alleviate this problem.

Target and other retail planned for the hill are hyped to be the savior of our schools and property tax rates, yet Target recently announced a decrease of 6.1 percent in comparable-store sales for the month of April over last year. Internet sales continue to increase over 25 percent per year, further eroding brick and mortar retail.

A smaller retail project financed by private capital markets would have a greater immediate and more stable return (including commercial property tax revenue) for the city. Such a project, along with anticipated residential development would also more appropriately fit the Oak Ridge market.

Sales tax makes up about 22 percent of total revenue, a safe level to maintain without a budget crisis whenever the economy takes a dive or the legislature changes the way sales tax revenue is distributed. The last thing we need is increased debt service when stores are unable to draw customers during an economic downturn or when the tax system is turned on its head. Please vote “NO” on this well-intentioned but ill-advised bond referendum.

Fred Childress

Oak Ridge

http://www.oakridger.com/stories/060107/opi_174087780.shtml