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County school board votes 3-2 to set tax rate to create 4 percent revenue increase

Nelson County Board of Education member Diane Berry listens as Chief Financial Officer Amy Owens explains the rationale for the recommendation that the board approve a tax rate to create a 4 percent tax revenue increase.

 

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Wednesday, Sept. 19, 2018 — The Nelson County Board of Education approved raising the fiscal year 2019 tax rate on real estate and personal property from 76.4 cents to 77.2 cents per $100 value. The increase will create 4 percent more tax revenue for the fiscal year.

The measure was approved by a 3-2 vote, and only after extensive discussion justifying the need for the full 4 percent increase between the board and Superintendent Wes Bradley, and the district’s Chief Financial Officer, Amy Owens.

Chief Financial Officer Amy Owens reviews the district’s finances during a presentation at the public hearing regarding setting the district’s tax rate.

During a presentation at the tax rate public hearing, Bradley and Owens noted that the district is expected to see $1 million less in SEEK funding from the state. SEEK funding has dropped $4.2 million between 2009 and 2018.

Part of the SEEK funding decrease in the past 10 years is due to steadily declining enrollment in the district’s schools. Increases in local property assessments also have triggered decreases in the amount of SEEK funding the district receives, Owens explained.

In six of the last nine years, the school board has approved tax revenue increases of 4 percent. On two years — FY 2014 and 2017, the board approved a 3 percent revenue increase. In FY 2012, the board approved a 2.5 percent revenue increase.

Overall, in the past 9 years, the district has increased tax revenue by an average of 3.08 percent each year. These increases have allowed the district to keep up with rising costs, Bradley said.

Based on the projected reductions in state funding — including grants — Bradley recommended the board approve the 4 percent tax revenue increase to help sustain funding for all the of the district’s needs.

Board member Diane Breeding asked about plans to improve the processes for budgeting and allocating funds within the district schools — a topic that was discussed earlier in the month at the board’s working session.

Board member Diane Breeding asks for answers to questions regarding the district’s finance procedures during Tuesday evening’s board of education meeting.

Owens explained that making changes to those processes is a long-term goal, and that the expenses in the budget are the anticipated expenses the district will be obligated to pay. Even with the 4 percent revenue increase, the district’s expenses will still outstrip revenue and require spending some of the district’s contingency fund money, she said.

Only one member of the audience in the tax rate public hearing chose to speak. Cox’s Creek resident Ann Armstrong told the board that it seemed like 3/4 of her property tax bill goes to school taxes. She said the 4 percent revenue increase impacts retirees and those on fixed incomes. The school collects taxes on more than just real estate and personal property, she said, citing school taxes she pays on utilities, phone bill and on motor vehicles.

When the board was asked to approve the 4 percent tax revenue increase, board members Damon Jackey, Jeff Dickerson and Rebekah McGuire-Dye voted in favor of the increase. Board members Diane Berry and Diane Breeding voted against the measure.

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