VC's proposed tax rate to begin paying off technology center debt
Aug. 12, 2013 at 3:12 a.m.
Victoria College board trustees approved a proposed tax rate Monday that will help pay off bonds for VC's new technology center.
The rate is 3.01 cents above the effective rate of 15.22 cents per $100 assessed valuation.
In May 2012, voters approved the $22 million construction bond needed to build the Emerging Technology Center.
Last month, ground was broken for the center, which when complete in 2015 will be used to train employees of local manufacturing and industrial plants.
At the special meeting, Keith Blundell, vice president of administrative services, proposed a 2013-14 tax rate of 18.23 cents per $100 of assessed valuation.
Broken down, that would be 14.01 cents for general operating and 4.22 cents for debt service.
The current tax rate is 16.06 cents per $100 assessed valuation.
With the new rate, the owner of a $100,000 home would see an increase of almost $22 a year on his or her tax bill.
"The taxpayers voted to pay for the bonds issued for the construction of the Emerging Technology Center," Blundell said. "We issued those bonds in February, and now that they're constructing the building, we're going to start making payments."
Blundell said the increase in property values allowed the rate to be lower than initially anticipated.
With the proposed tax rate, the college would generate exactly what is needed to operate the college and pay on the bond debt, Blundell said.
But before the rate can be adopted and because the rate is above the effective tax rate, the college is required to hold two public hearings.
The first hearing is set for Aug. 21 followed by the second one Sept 3.
The tax rate is expected to be adopted Sept. 9.
In other business, the board went into a closed meeting to discuss President Tom Butler's annual evaluation.
Last year, the board approved a 3 percent increase to the college president's salary. He makes $200,034 a year.
After about 40 minutes, the board returned and adjourned without taking action.