Rutherford County is seeking parity from the state legislature in terms of options available for cities and counties in dealing with the expansion of services demanded by the unprecedented growth in the state.
At the regular meeting of the Rutherford County Board of Commissioners held Thursday evening, a resolution was passed by a vote of 18 to 3 requesting the county’s legislative delegation to support any bills presented in the 2023 legislative session to amend the 2006 County Powers Relief Act.
Essentially, the act relieved counties of their power to use a financial tool to properly fund the expansion of existing services, like new schools, law enforcement fire service, emergency management services, and roads brought on by accelerated growth in the community.
At the same time, the Act allowed cities to continue to levy impact fees to fund the growth within their jurisdictions.
The purpose of the 2006 Act was to specifically deny the counties the same tool the cities can employ.
The unequal standard came about because cities can levy an impact fee with the simple passage of an ordinance by its council or board of alderman, while counties rely on the state legislature to pass a private act for each county to fund the growth-induced need for expanded services.
This put the legislature in the effective position of repeatedly having to approve fee increases.
Through the Act, counties have been left with only an adequate facilities tax, which is an onerous process that does not keep up with the rate of inflation, or very unpopular increases to the property tax.
Meanwhile, it is counties that generally bear the largest burden to local government funds – public schools – which usually accounts for more than 70 percent of most county’s property tax collections.
Rutherford County Mayor Joe Carr, who spent six years in the Tennessee House of Representatives from 2008 to 2014, brought the resolution forward to the commission, reading it in its entirety before the vote was taken.
The only objection to the resolution was not related to its concept, but that it hadn’t gone through the committee process. Carr and Rutherford County Attorney Nick Christiansen explained that, with the legislature having started its session and the bill filing deadline looming, it was a timing issue of getting before the Steering, Legislative and Governmental Committee, but it could certainly be referred there at the will of the body.
Ultimately the resolution passed with only three no votes from Hope Oliver (District 1), Craig Harris (District 15), and Phil Dodd (District 16), with Harris, Chair of the Steering, Legislative and Governmental Committee, previously stating his issue with the process.
At the same meeting, the Rutherford County Commission unanimously approved a proposal also brought forward by Carr relative to agreements for the professional services of three lobbyists to move the issue forward.
Previously, the commission had given Carr approval of up to $100,000 for such lobbying services. Carr reported to the commission that services would be retained from Crux Strategies at $30,000, Poplar Group at $25,000 and Denami Government Affairs at $35,000 for a below-budget total of $90,000.
This is in addition to the two lobbyists that Rutherford County Schools has retained, Carr advised.
Knox County Mayor Glenn Jacobs is supportive of the effort, Carr reported as an outcome from a meeting he had in Knoxville earlier that day.
The full language of the resolution passed by the Rutherford County Board of Commissioners can be read here:
WHEREAS, Rutherford County has experienced and will continue to experience accelerated growth that leads the country; and
WHEREAS, the citizens of Rutherford County, for far too long, have been given the burden of paying for new developed by ever-increasing property taxes; and
WHEREAS, in 2006, the Tennessee General Assembly enacted the County Powers Relief Act T.C.A. 67-4-2901, et seq, which provided the authority for Counties to enact adequate facility taxes; and
WHEREAS, the growth in Rutherford County, has led to the need for the expansion of county services, including, but not limited to, new schools, law enforcement, fire service, emergency management services, new roads, etc. The adequate facilities tax on development, allowed in T.C.A. 67-4-2913, alone has proven to be woefully inadequate in meeting the demands for additional services the county has experienced; and
WHEREAS, pursuant to T.C.A. 67-4-2913, the County Powers Relief Act specifically forbid a county from enacting an impact fee; however, it excluded municipalities from the prohibition of enacting impact fees; and
WHEREAS, in Tennessee Attorney General Opinion No. 07-161 (December 11, 2007), the Tennessee Attorney General also opined that the County Powers Relief Act, “does not prohibit cities from enacting impact fees;” and
WHEREAS, municipalities are specifically granted the authority to enact impact fees pursuant to T.C.A. 6-2-201 (15) and T.C.A. 6-33-101(a) to fund the expansion of their services caused by growth; and
WHEREAS, Rutherford County desires to be given the same opportunity afford to municipalities in determining how best to fund the expansion of services necessitated by accelerated growth; and
WHEREAS, the Rutherford County Commission deems it to be in the best interest of Rutherford County and its citizens to request that the State legislature support an amendment of the County Powers Relief Act to allow counties of the State of Tennessee the same options granted municipalities when it comes to funding the expansion of services necessitated by accelerated growth; and
WHEREAS, it is fundamentally unfair to require the citizens of Rutherford County to continue to fund the expansion of services caused by growth with ever-increasing property taxes.
NOWHEREAS, THEREFORE, BE IT RESOLVED by the Rutherford County Board of Commissioners to respectfully request that the Rutherford County legislative delegation support any bills presented to amend the County Powers Relief Act to merely allow the counties of Tennessee to be placed on a level playing field with the municipalities in our great state, to determine the most conservative way to establish a means for funding the accelerated growth Rutherford County is experiencing without burdening the current tax base with increased property taxes.
BE IT FURTHER RESOLVED that this resolution be forwarded by appropriate County officials to the Rutherford County legislative delegation and/or others, as deemed proper.
RESOLVED the 12th day of January, 2023.
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Laura Baigert is a senior reporter at The Star News Network, where she covers stories for The Tennessee Star.
