No doubt the Nashville Metro area is one of the largest, fastest growing areas in the state with the largest residential, commercial and industrial bases. The local government just passed a 34% property tax increase bringing their property tax rate to $4.22. Compare that to the Loudon County property tax rate of $1.80.

But with all the growth in Nashville, how can it be that they have one of the highest property tax rates in the state? Because, massive, rapid growth will not pay for it's self.

Now to the point, how do Lenoir City and Loudon City effect the bottom line in Loudon County. Lenoir City first.

Lenoir City, like Loudon County, has a school system. Just like Loudon County, the Lenoir City school system is the largest cost to the city tax payers. Currently in Lenoir City, there are hardly any restrictions on residential growth. As reported last week, there's more than 700 new residential units, homes, apartments condos proposed for the city in the next two years. If this turns out to happen, the county school system will have to put some kind of safeguards in place to restrict how many city students may attend the county system.

The Lenoir City school system currently has about 2,300 students in their three schools. They currently have a 21 million dollar budget. Per pupil spending is about $10,000.00 per student. $4,200.00 of that is local tax dollars.  Let's say that if those 700 new residential units do come to Lenoir City and only half those new units have one school age child, that would be a 15% increase in the city school population. A 15% increase in the Lenoir City school budget would be another 3.1 million dollars. You can bet there will be far more than 350 new school age students.

Unlike Loudon County where the maximum residential development is 2.5 units per acre, in some cases, Lenoir City allows up to 8 units per acre. This can't help but entice rapid, overdevelopment. While there is no proposed property tax increase for Lenoir City residents this year, could this kind of overdevelopment cost the tax payers in the near future? Remember Nashville.

Now Loudon. The City of Loudon is in a far different situation than Loudon County and Lenoir City. Loudon has no school system. I know it's painful for you folks in Loudon but Loudon High School is actually, Loudon County High School. But on the good side for Loudon, they don't have to fund a school system.

So when it comes to residential development, they don't have to be concerned about how dense development effects schools. Most Loudon City children are educated in the county school system. Loudon City is left to deal with the other consequences of dense, over development, and there are many. Loudon is currently debating the pros and cons of high residential density. Hopefully, they will find the proper balance between good and bad development remembering that the denser it gets the worst it gets.

Hyper residential development is always bad for a community. The costs always out pace the revenues. Then everybody pays more and more and more.