7¢ tax hike proposed

By: Mary E. Hinds Source: Loudon County News-Herald 04-28-2008 The Loudon County Budget Committee has voted to recommend a 7-cent hike in the property tax rate for the next fiscal year. Under the proposal the current rate of $1.84 would go up to $1.92 if the recommendation is passed by the full commission. The committee also proposes changing the distribution of funds for county departments. Under the plan, the county general fund would lose 5 pennies from its share of the $1.84 tax rate, going from 70 to 65. This is the fund that finances most county departments. The county school fund would gain 8 pennies, going from 88 to 96. The general debt fund would remain the same at 9.5 pennies and the highway department would receive an extra penny going from 3 to 4 pennies. The solid waste fund would lose a half penny going from 1 penny to 1/2 penny. The general capital projects fund would also lose a half a penny going from 2.5 to 2. The rural debt fund, which is used to fund some school projects and will be instrumental to borrowing funds for the upcoming county school building program, would gain 5 pennies going from 10 to 15. Budget committee member and County Commissioner Don Miller noted that while the budget committee has asked the county school board to slash requests for additional funds from $4.6-million to $1.24-million, putting an additional 8 pennies in the county school fund would raise the amount set aside for schools from $7.4-million to $8.6-million. This is if the proposed tax hike is approved by the full county commission. "Remember we (the county budget committee) are just four members of the commission," Miller said, adding the majority of the commission will have to vote to make the tax increase a reality. "It’s a small increase, but still an increase," he said, adding he feared another property tax rate increase is on the horizon next year to begin funding the extensive county school building program.