Frequently Asked Questions
Regarding the Nickel Tax
It's About Every Student, Every Day, No Excuses!
Q. What is the nickel tax and why do we need it?
A. The nickel tax is the one commitment required of Trimble County citizens to obtain state assistance for the construction of a new High School.
• The state ranks all schools from first to last based on the need for replacement and/or repair and Trimble County High School is the top of that list as a high school facility.
• Kentucky has made it clear they will not give any financial help to districts unless they first pass this tax.
• Even though this tax will only generate $290,670 per year, this increases our bonding (borrowing) capability from $560,000 to $4,070,000, with an additional several hundred thousand dollars per year available from the state ($168,180). This adds another 2,355,000 in bonding potential. The only amount Trimble County residents are and ever will be responsible for is the $290,000 from the initial nickel tax. The funding provided by the state through matching funds and through urgent needs will not need to be repaid to the state nor will there be additional taxes required to get that funding. The community investment is the nickel tax only.
• Many other districts have already taken advantage of these state monies by having levied a nickel tax, received millions from Kentucky’s building funds, and have built modern facilities that give their children the best environment in which to learn.
• If we do not pass this tax, we may never receive enough funding to build a new school.
Q. How much money will this nickel tax cost me every year?
A. The nickel tax is 5.7* cents per $100 assessed value on your home or land. The median home and land value in Trimble County, Kentucky is $115,000.00** according to the PVA. Examples:
$25,000 valued home would be $14.25 per year.
$100,000 valued home would be $57.00 per year.
$1,000,000 valued home would be $570 per year.
---To calculate your exact additional tax, multiply your assessed value by .00057.---
Your taxes will not increase by $1,000. If you have been told this you have been give extremely false information.
*The district received the actual rate for the nickel equivalent on Wednesday, July 27th. The nickel equivalent is now set and must be 5.7 cents per $100 assessed value on home or land.
**The PVA has also given the district the most recent and accurate median home value this week as well. It was originally listed here as $102,000 but is currently at $115,000.
Q. How much will building a new school cost?
A. Current estimates put the cost somewhere between $19 million and $21 million dollars.
Q. Why can’t we just fix up the existing school rather than build a new one?
A. The cost of a complete renovation for Trimble County High School is estimated at $15,000,000. The cost of constructing a new school is estimated at $21,000,000. Therefore, it would cost nearly the same amount of money to renovate as it would to construct a new school; however, we would not receive the bonding/borrowing potential or other state assistance, effectively making it impossible to do either option. Even though Trimble County High School has been a great school in the past and has served its purpose well, it has been patched, repaired, and “piece-milled” together for the past 54 years.
Q. Why is this tax only for land/homeowners and not for everyone?
A. It is mandatory by state law (KRS 160.460 (3) and related KRS 132.010 and 133.125) that school taxes can only be increased through property taxes. This is the only way to secure funding for state assistance for construction funds. Is it as fair and equitable as other ways might be? Maybe or maybe not, but it is the only option we have.
Q. Why wasn’t this nickel tax put on the general ballot so everyone could vote for it?
A. The law states that we take the steps that are currently being taken. Each district within the county has an elected school board member who votes on that district’s behalf just as do your fiscal court magistrates, state representatives, and state senators. Your school board representatives recognize and understand the need for the construction of a new high school and all members are in support of this tax. If this initiative is blocked by petition, then it will be placed on the ballot.
Q. What happens if the nickel tax does not pass?
A. If the nickel tax does not pass, the school district will not receive the several million dollars in state assistance, the new school will not be built, and the state assistance will go to the next available school district that has passed the local nickel tax.
Q. If this tax does not pass, can it be brought up again in a future attempt?
A. Yes, it may be brought up again but it would delay and potentially cost us the available state assistance for the construction of a new school.
Q. Why can’t the tax be for just those people who have school-aged children in the county?
A. The law does not allow for “picking and choosing” on who gets taxed (KRS 160.460 (3). It is a county wide property tax or no tax at all. The education of our children is the responsibility of all.
Q. Isn’t there any other way to raise the money for a new school besides a tax, such as “trimming the fat” from the school system?
A. All school districts across Kentucky have experienced major budget cuts over the past 7 years which has forced all districts to seek out and reduce excess waste. While not perfect by any measure, the Trimble County school district has been very active and successful in finding ways to more efficiently utilize its revenue and resources. We have cut $620,000 from the budget for the upcoming year. However, the maintenance needs and costs have increased yearly as our buildings get older but the funds to renovate them have stayed nearly the same or dropped. Even if we were somehow able to cut out enough staff and educational programs to save $200,000 - $300,000 per year, this would not increase our bonding/borrowing capability and we would not have access to the $21 million dollars it will take to build a new school. The state simply will not help us in any way if the nickel tax is not passed. If the tax IS passed, the majority of the construction costs will be paid by the state, with an estimated $290,670 paid locally per year. However, with no state assistance, it would take many years (at least 50 years) to pay for a new school AND maintain the other school buildings in the district.
Q. How much money will this tax actually generate for the school district?
A. It will generate less than $290,670 per year. But that money will open the door for state assistance ($168,180) and a much greater bonding/borrowing capability (6 million).
Q. Specifically, what can the money be spent on and what can it not be spent on?
A. The money can be spent ONLY on our facility construction or renovation. Our local Facilities and Planning Committee has made the building of a new high school the number one priority for this district; something the students, faculty, and community deserve and can be proud of. The money set aside for new construction can only be spent for construction or repairs identified by the planning committee—not salaries of teachers, administrators, bus drivers, etc.
Q. How long will I have to pay this tax? Will it be temporary or permanent?
A. The tax can be temporary or recalled but only after the bonding loans have been paid off (typically a 20- year bond). However, as with the other 100-plus districts in the state that have passed this tax, the tax is typically used even after the bonding loans have been paid, since other facilities within the district will be facing similar needs at that time. It is important to remember that this tax will only bring in an additional $290,670 per year to the school district and can only be utilized for new construction or maintenance and renovations to the existing schools.
Q. When will the tax take effect?
A. The tax would take effect in the 2016-2017 school year. If the petition against the tax is successful, then the tax will be delayed which would potentially cost the district in the next funding cycle.
Q. Where will the new high school be built?
A. Where the current high school stands. The plan is actually calling for new construction of all but the 1994 section of the current building and the gym, both of which areas will be renovated.
Q. What will happen to the old school?
A. The old part of the building would be torn down and rebuilt in phases.
Q. If the school district gets this tax, what is to keep them from asking for and getting another nickel tax sometime in the future?
A. Should the community allow this tax, there should not be a need for any additional nickel tax anytime soon if ever. This is the first time this local nickel tax has ever been requested. If this tax is passed, the funding will be there to help us to provide a safe and rich learning environment for our students.
Q. Who will build the new school and how will they be selected?
A. The construction of the new school would go out for sealed bids and the school board will select the winning bid. The law requires that new construction is put out for sealed, competitive bids.
Q. Are we going to be responsible for paying the state back?
A. No. The state has budgeted the urgent need money for just this purpose and it is not paid back. It is the state’s contribution to our facilities. There will be no need for the local community to pay anything other than the nickel tax.
More Questions
Why did we move students into TCHS if that building is in such bad shape?
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It is important here to point out that both TCHS and TCMS are category 5 schools (Category 5 being a building over thirty years old and the worst rating the state gives to any educational facility.) TCMS has its own set of issues based on its age and is also fairly high on the Parson’s List. When talking about combining the two schools the only logical solution was to move the students into TCHS. TCMS, though it was originally built to be a high school, was very quickly determined to be inefficient in that role as the high school was eventually moved back into the old building. TCMS is too small to accommodate 7-12 grade students. The decision had to be to use TCHS and since it was in higher need make the commitment (through the nickel tax) to improve the facility. The other issue is the amount of money TCHS and TCMS combined are costing the district through issues that arise due to the age of the buildings. I reported last week that I had identified $72,000 that we spent last year on the two buildings due to major issues related to age. We are already having to replace a restroom door at TCHS at a cost of over $11,000 to make it wheel chair accessible. There is another $19,000 cost to repair and do maintenance on the freezer and coolers at TCHS. We are currently awaiting an estimate on the wheel chair lift. We have not even begun the school year. This is why we propose closing one school that was bleeding us in funds. This is why we propose a nickel tax to get urgent need money to fix the other school that is bleeding us in funds. There is no other way to get this done.
Trimble Passed a 10 Cent Tax in 1979, why does that not apply to our current situation?
The old special voted building fund tax (14.3) is in the 1990 tax rate. That matches information about the tax raised to build the middle school in 1980(the 10 cents tax of 1979). When the Facilities Support Program of Kentucky (FSPK) was established in 1990, many special voted tax rates were either rolled in to FSPK, sunset, or reset as an equivalent rate (it was set at 5.8 in Trimble). So, the special voted went to a nickel in 1991, but the special voted looks to have stayed, and was spent when debt was retired for operations, since the tax rates were not rolled back. This simply facts being stated, not a judgement on how it was done. There were many factors during that time that would have dictated how the district moved forward regarding these tax rates. It also bears noting that the tax was passed with a twenty-five year limit, so if KERA had not nullified it in 1990 it would have expired in 2004.
In 2001, KDE approved about $90,000 general fund debt service for New Bedford Elementary. Over time, the growth in assessments through FSPK equalization has offset general funds, but they have not set the tax rates back. It appears those funds were also rolled into operations.
Once again this is just a little history on the taxing in Trimble County but the short explanation to the question raised by the 10 cent tax in 1979 is that with the advent of the Kentucky Educational Reform Act (KERA) everything prior to 1990 was null and void. So, from the perspective of the General Assembly and how they award urgent needs funding in the post-KERA era, Trimble County has not passed an additional nickel tax to qualify for urgent needs funding.