Maryville mulls 12-percent tax hike

By Iva Butler
of The Daily Times Staff

The city of Maryville tax rate would increase from $2.05 to $2.30 under the budget proposal Maryville City Council reviewed Friday at a budget retreat at Dancing Bear lodge in Townsend.

Maryville City Manager Greg McClain said this was going to be a tough budget year, due to state and federal cuts and the increase in gasoline prices that affect almost everything.

The tax increase will be used for city indebtedness, mainly for a $25 million bond issue for Maryville City Schools. Of that bond issue, $20 million will go for a new intermediate school off Sevierville Road and $5 for improvements at other schools.

The tax hike is a 12-percent increase or $62 per $100,000 value of residential property. One cent on the tax rate equals $71,200.

First reading of the 2009 budget will be June 3 and second and final reading will be June 12.

Total revenue is expected to total $32.3 million, an increase of 6.9 percent over 2008.

Under the proposed budget, school operations would get $9.3 million, 28 percent of total appropriations.

Public Works would get $5.3 million, 16 percent of the total.

Police would get $5.3 million, also 16 percent.

General government funds would be $4.1 million, 13 percent.

Fire services would get $3.7 million, 11 percent of the budget.

The budget includes a 1 percent pay hike for all employees. That and merit increases would add $530,000, up 3.3 percent over 2008.

Health costs are expected to increase $64,000, up 1.4 percent.

Blount County Public Library would get $719,616, up 2.6 percent over the current budget.

Parks and Recreation would get $641,374, up 3.4 percent. The Parks and Recreation money would include $12,000 to replace butterfly valves at John Sevier Pool.

Child and Family Services would get $16,720, up 3 percent, and Tennessee Rehab Center would get $53,709, up 63 percent. Maryville City Manager Greg McClain said he would like to fix up the rehab center and sell it next year so the owner would be private, and not the city.

Community Action Agency would get $7,692, up 3 percent.

Requests from Blount County Historical Museum and Senior Citizens Home Assistance Service Inc. were not funded.

The budget contains a $3.8 million fund balance, which is usually for emergencies.

In the Electric Department, the plan is to modernize the Rockford Substations. The city has eight stations, three of which are 40 to 50 years old. Electric Department Manager Baron Swafford said the city is trying to upgrade them one at a time. After Rockford, there will be two others to modernize.

On average the work takes $100,000 for design and installation.

Jeff Rose, water quality control manager, said a $34 million bond issue is planned for improvements to the wastewater treatment plant over two years. "Conditions are looking good for bids because everybody is looking for work," he said.

The department will also be extending the sewer line down U.S. 411 South all the way to the U.S. 129 intersection.

"This will serve several of the annexation areas," Rose said.