The Bell County Board of Education set the tax rates on real property at 68.7 cents per $100 of assessed value and on personal property at 69.3 cents per $100 of assessed value during a recent special called meeting. The rate for real property is a 0.5 cent decrease from last year while the rate for personal property is 0.1 cent increase.

“This was a really unique situation. We’ve never been able to lower taxes and generate more money,” Superintendent Tom Gambrel said.

The compensating rate would have been 66 cents per $100 on real property and 69.2 cents on personal property. By approving the new rate, the district also qualifies for just over $1 million in additional state matching funds.

“By taking the four-percent (increase over the compensating rate) we are still able to lower the tax rate and generate about $300,000 more in revenue locally. We’re also going to be able to receive a match from the state of over $1,058,000 starting next school year,” Gambrel said.

Because the tax rate changed without taking the compensating rate, a public hearing was held prior to the meeting to hear any public comments regarding the proposed rate on the tax levy. There were no audience members in attendance with any comments.

A motion to set the tax rates passed unanimously.

District Finance Director Steve Silcox explained that the state equalization funds match 19 cents for each nickel of local revenue generated above the compensating rate and the district will receive those funds each year. It also will raise the district’s bonding capacity to $29 million by the end of 2026.

“(That revenue) is basically the equivalent of adding 161 kids to the schools,” he said.

Board Chairman Doug Ramsey asked what the money could be used for.

“You can bond with it and if you don’t bond with it I can put it back in the general fund,” Silcox said. “Technically, it’s supposed to be for bonds. But if you don’t obligate bonds I can do a capital funds request every year to move our excess money for bonding back into our general fund.”

Gambrel explained that the capital funds can be used to replace general fund money that was used to purchase equipment or pay insurance on the buildings.
“This keeps us solvent. We have been very fortunate to put away some money while still being able to give raises,” he said. “This gives us a little bit more of a buffer and the tax rate for each individual taxpayer is lower than it was last year.”