Last spring, the Logan County School District was made aware of a proposed assessment of $142,946 due to the dissolution of the Kentucky School Boards’ Insurance Trust (KSBIT). For many years, the Logan system used the services of KSBIT for its property and liability insurance policies, as well as our worker’s compensation policies.
After several instances of litigation brought by other school districts, and decisions made by the Kentucky Department of Insurance, the total billed assessment for Logan County Schools was decreased to $68,091.
Based on the financial strength of the Logan County district, Superintendent Kevin Hub recommended making this payment in full, eliminating the long term debt and interest payments that face some districts.
“During the interview process and several times since being hired, I have pledged to our board that I would not ask them to raise property taxes unless we had a specific need for the increased revenue,” Dr. Hub says. “Once again, based on the financial strength of our district and the effectiveness of our budgeting process, my recommendation to the Board was to accept the Compensating Tax Rate for the 2015 tax year.”
The Compensating Tax Rate of $0.401 per $100 of assessed property value is the rate that when applied to the current year’s property assessment, excluding new property, produces an amount of revenue equal to that produced in the preceding year.
The board voted at Tuesday night’s August meeting, 5-0, to accept the Compensating Tax Rate rather than opting for a higher rate which would have brought in more funds.