Audible sighs could be heard from the audience as the Navajo County Community College District Governing Board voted two for and two against on the proposed two percent property tax levy increase after the board held a public hearing and special meeting prior to the regular monthly meeting on Tuesday, May 15. The hearings were to review and vote on the Truth in Taxation notice associated with the proposed property tax levy increase and to review the 2018-2019 fiscal year budgets for Northland Pioneer College (NPC).
Anytime the proposed tax levy is greater than the amount levied the previous tax year a Truth in Taxation hearing is required. Amounts related to new construction are excluded in the calculation of the proposed two percent increase.
No one in attendance chose to speak for or against the tax levy increase. The only public comments received on the subject were via email from Jerry Brownlow and James Lemon. Both of those comments were against the tax increase.
The proposed primary property tax levy percentage change was two percent and that amount is the maximum amount allowed. NPC’s tax rate is in the middle when compared to other community college districts. NPC has been at or below the average rate for primary property taxes and that is expected to continue for the 2018-2019 fiscal year.
NPC staff recommended that the board approve the primary property tax levy in the amount of approximately $15.3 million. The increase would bring the tax rate from $1.81 to $1.85. Meaning a home valued at $100,000 would be assessed an amount of $185.27. The proposed budget was developed to include the primary property tax rate of $1.8527. By comparison the primary property tax levy for 2016 was $1.74, for 2017 $1.79 and for fiscal year 2018 $1.81.
Board member Derrick Leslie attended via phone and expressed concern over asking the community to pay additional taxes. “The bottom line is we are asking the taxpayers to give us a two percent increase but we are not doing anything, at least it looks like (that) in outward appearance, to sort of give people the notion that we are sharing in the sacrifice,” said Leslie. “I think that the sacrifices are in fact being made its just that they aren’t obvious,” said board member James Matteson in response.
Board Chairman Frank Lucero also had concerns about increasing the tax levy amount. “My mother’s taxes last year went up $6,000 in property taxes. She is 94 and a widow and the county refused to give her the widow exemption,” said Lucero. “Taxes do hurt people.”
Ultimately when it came time to vote Lucero and Leslie voted against the increase. Matteson and board member Daniel Peaches both voted in support of the tax levy increase. Meaning they were left at an impasse and the requested two percent increase was denied.
A motion was then presented by Leslie to instead approve the Truth in Taxation analysis tax levy increase that is less than $1 from the current rate. The board then approved the reduced tax levy increase. The new rate means that a property valued at $100,000 would pay a property tax amount of $181.64.
The 2018-2019 fiscal year proposed budget was also on the public hearing agenda and up for a vote. However, because the budget was created with the assumption that the property tax levy increase would be approved the budget is no longer accurate. NPC has until June 29 to approve a budget.
Staff must now go back to the drawing board and find where they can make up the $301,000 in funds that will now not be part of the budget due to the denied two percent tax increase. The board has tentatively scheduled a meeting for June 5 to review and vote on the budget to beat the impending deadline.
Also part of the meeting, but not up for public hearing, was a request to approve the 2019-2021 proposed capital budget for NPC. That budget helps guide capital project planning for the next three years for the college but will also need to be addressed again later due to the changes in property tax levy amount.
