Barbourville Ind. board approves nickel tax with one dissenting vote and no residents at public hearing; district's bonding capacity would increase by $700,000

Times Tribune, Corbin, July 21, 2017

Recallable nickel tax approved in Barbourville
By Timothy Wyatt

The adoption of a recallable nickel tax was approved by a 4-1 vote Thursday evening by the Barbourville Board of Education, setting a slightly higher tax on properties within the district.

Before the board entertained the issue for a vote, a presentation from Ross, Sinclaire & Associates, the financial consulting company for the district, was utilized to inform board members where the district stood financially and how a nickel hike could be a beneficial decision.

Lincoln Theinert, a financial advisor with RSA, said that with the current nickel tax rate, the district garners $51,104 per year. With the passing of another nickel tax, the district could double those funds. To add to that, Theinert explained, the district would also see increases in other areas.

“That additional nickel would immediately add $700,000 of bonding capacity that you would have available this year,” said Theinert.

The board provided a chart highlighting the changes that would be seen by property owners within the district if the nickel tax were to be adopted. According to that chart, properties would be taxed at a rate of 0.59 percent. The chart also listed the yearly increase property owners would see based on their property’s assessed value. Those numbers are as follows:

$100,000 property = $59

$150,000 property = $88.50

$300,000 property = $177

$350,000 property = $206.50

$500,000 property = $295

All money gained through the nickel tax are restricted funds and are strictly designated for a specific purpose, meaning it can’t be put in the general fund to used however the board sees fit. The money must be allocated to the district’s building fund. For that reason, the money can only be used improve the district’s facilities through construction, renovation or debt service.

Bob Tarvin, also with RSA, told board members that helping the local taxpayers understand the purpose of the nickel tax was of paramount importance. Due to it being a recallable nickel tax, taxpayers have the ability to potentially overturn the board’s decision if done so in a timely manner.

“If, in your action tonight, you elect to take that tax, then that tax would be available to the local public for a recall period of 45 days,” said Tarvin.

During that recall period, if a petition—organized by precinct—is delivered to the county clerk with signatures representing at least 10 percent of the voters from the county’s last presidential election, the tax could be recalled. In that instance, the issue would then return to the board, who could then take the action of calling for a public election regarding the tax. If the 45 days pass with no opposition, the nickel tax would remain enforced and would be added to the districts tax levy in the fall.

Vice Chair Sandy Lundy made a motion to adopt the nickel tax, with board member Will Daniels seconding the motion. All members voted in favor except for board member Bonita Williams.

Following the vote, Williams offered an explanation of her decision.

“I want the best for this school. I am not comfortable with this. I am protective of this school. I want to make sure we keep the doors open, and that we make the best decisions possible,” said Williams. “If I offended anybody, I’m sorry. But I do ask a lot of questions; I am conservative when it comes to financials.”

An hour-long public hearing was held immediately before the meeting regarding the nickel tax issue, though Superintendent Kay Dixon said that no one was in attendance.