by KAITLIN KEANE

Campbellsville Independent SchoolBoard members approved to raise the 2016-2017 real estate and personal property tax rates by 4-percent Tuesday in a special called meeting.

The 4-percent increase tax rate, which means revenue is 4-percent more than the prior year, will increase from 60.6 cents per $100 to 62.5 cents in 2017, which would be an increase of 19 cents, or $19 per $100,000 in property value.

The vote passed 4-1. Chairperson Pat Hall voted against the increase. CISD has taken the Kentucky Department of Education recommended 4-percent increase for the past 12 years, with an exception of

the year they passed the nickel tax.

“I personally would like for us to consider doing something different,” Hall said. She said she has voted against a tax increase every year she has been on the board since 2008.

“I pay the tax,” she said. “I just have some skepticism at this point of how many years we can keep increasing without giving some break to the community.”

“In a small district the opportunities for revenue aren’t what they are for larger districts, therefore the need is there,” Superintendent Mike Deaton said. “With the decrease in funding it makes it incumbent that the local school district take on more and more of the burden to make sure that the children are educated. None of us want to see students not have the opportunity to succeed and have what they need, and the recourses necessary for them to be successful and be productive as they go on to the work force and move on to college. Therefore, my recommendation is based on those factors.”

Finance Director Chris Kidwell went over budget concerns for members of the Board to keep in mind. The district has to refund a tangible property tax to Amazon of $151,123.

“We received something from the Kentucky Department of Revenue related to Amazon’s tax returns,” Kidwell said. “They submitted their 2009-2012 tax returns to the state and they basically refigured

their tangible taxes, and unfortunately for our school district, that equated to we have to refund $151,123. And there is really nothing we can do about it.”

It was nothing the district did to cause this outcome, “basically… they made an overpayment on their taxes.”

“Its going to have an effect on our budget this year,” Kidwell said.

Other things to consider is the ability to soon purchase a new bus. The approximate cost for a new bus would be $120,000. The district has two 20-year-old buses currently.

“The amount we have to pay back to Amazon would more than purchase a new bus,” Board member Angie Johnson said.

There is also an increase to the KTRS/CERS Retirement system, a new IRS rule on figuring FICA and Medicare payments, which could cause an approximate $10,000 yearly increase, as well as an anticipated increase to workers comp and property/liability costs of an estimated 10-20 percent.

Out of the 53 other independent school districts in Kentucky, the average tax rate is 78.2-percent. Campbellsville has the 46th lowest tax rate compared to the other independent districts. Others range from 130.2-percent to 42.2-percent.

The tax rate increase to 62.5 is expected to produce a projected revenue of $2,619,761, a difference of $345,366 over the previous year’s revenue.

In addition to the 62.5 cents, 5.5 cents is legally required to be used for building funds and construction.

“But in our case…who have passed the local nickel we have to set aside an additional… 5.6 cents. So we have to set aside 11.1 cents of our tax rate base for building and construction,” Kidwell said.

“Nobody ever wants to talk about higher taxes,” Board member Mitch Overstreet said. “You know…we’re paying them also. I know that doesn’t offer any sympathy…but we’re paying them also.”