The Nelson County Board of Education on Aug. 19 voted 4–1 to reduce the real-property tax rate for fiscal year 2026 from 67.3 cents to 67 cents per $100 of assessed value and to keep the motor-vehicle rate at 54.8 cents.
District staff presented the recommended change as an early step in the budget process; the reduced rate was recommended even as assessed property values rose, which staff said would still boost local revenue because of higher assessments. District staff showed local-tax revenue in illustrative figures moving from about $26.4 million to roughly $27.1 million under the lower rate, and noted that each one-tenth-of-a-cent (a penny equals about $440,000) materially affects annual revenue.
Mr. Martin (district staff) framed the decision in the context of longer-term revenue pressures tied to changes in state funding formulas. He explained that a state formula item commonly described as the “30¢ local effort” reduces state aid when local assessments increase: “We’ve continued to lose state revenue in large part because of the 30¢ local effort,” he said, adding that higher assessments cause some state funding to be withdrawn under the formula.
RSA advisors Dwight Salisbury and Lincoln (RSA advisor) briefed the board on bonding capacity for facility projects. Using conservative projections, RSA presented a workable borrowing range of about $76 million to $83 million over the next few years, assuming moderate assessment growth; staff described that estimate as conservative and useful for multi-year project planning. RSA also described that the district’s main building-fund revenue source is the three “nickels” (the district’s restricted facility contribution), which is taken “off the top” and does not flow to the general fund.
Board members then approved several facility-related actions:
- The board voted unanimously to approve revised BG-1 forms to close out and reestablish projects on the district’s 2025 design-forward plan, allowing KDE (Kentucky Department of Education) compliance and future BG submissions. No tally beyond “all in favor” was recorded in the transcript.
- The board approved a BG-1 for Foster Heights facility modifications (an FMD/MSD accessibility and functional update) with district staff estimating approximately $100,000 to reconfigure two classroom spaces for accessibility and occupational-therapy work. The motion passed with all members voting “aye.”
District facilities staff (Jim Cadell) described work on other projects: Thomas Nelson Middle School is out for bid with an anticipated Sept. 11 bid opening; the last Thomas Nelson bid in November 2022 was about $24.5 million and the district anticipates bid prices will be higher this fall. New Haven’s building was assessed on-site; the district’s facilities consultant estimated a focused renovation of classrooms, bathrooms, some roof/groundwater remediation and mechanical attention could be accomplished in a $5 million–$6 million scope rather than a previously cited larger figure.
Board members discussed trade-offs between lowering the rate and long-term general-fund impact. Staff underscored that the district has sought raises for staff in recent years while state aid has not kept pace; a staff member noted the district has given substantial raises during a period when the state share of funding has declined and warned the district cannot continue that trend without either additional revenue or spending reductions. Staff also explained that reassessments by the property-valuation office occur on a statutory four-year cycle and that reassessments in high-growth years can raise individual bills even when the tax rate falls.
The tax-rate motion passed 4–1. The board later voted unanimously to approve the revised BG-1s and separate BG-1s described above. No additional formal bond sale was approved at the meeting; RSA advised the board on projected capacity and timing as planning input. The board set the next budget-stage work sessions for September to review bids and finalize BG forms if needed.
The board also approved a one-line consent-item disclosure that Flaget Memorial Hospital provides a recurring $30,000 annual gift connected to a court contract addendum; that donation was noted during the consent agenda without separate board action.