New School 6

Now that we know the scope and estimated cost of the four building projects proposed by the Loudon County School Board, there are facts we know and facts we don't know. To be clear, I have not committed to support or oppose the proposed building program or the tax increase needed to fund it. The information below is just to help understand some of the issues.

One of the numbers that keeps being mentioned is, a 30 cent property tax increase, to fund the building program. To most people, that number doesn't really tell them anything. The best estimate on the proposed building program is $115,000.000.00. That's a huge number, but again, that doesn't really tell folks anything. The big question is, how much would a 30 cent property tax, to fund a $115,000,000.00 building program, cost me? Construction costs and interest rates at the time a building program would commence could have a major impact on the true costs, up or down.

Below is a table that breaks it down by appraised value from a 100k, to a million dollar home with the implementation of a 30 cent property tax increase. It shows what your current property tax is and what it would be with a 30 cent increase and how much additional tax would be due.

A 30 cent property tax increase would generate an additional 6.3 million dollars per year, all of which would go to pay the debt service on the building program.

Appraised Value Current Property Tax $1.52 New Property Tax $1.82 Increase In Taxes
$100,000.00 $380.00 $455.00 $75.00
$200,000.00 $760.00 $910.00 $150.00
$300,000.00 $1,140.00 $1,365.00 $225.00
$400,000.00 $1,520.00 $1,820.00 $300.00
$500,000.00 $1,900.00 $2,275.00 $375.00
$600,000.00 $2,280.00 $2,730.00 $450.00
$700,000.00 $2,660.00 $1,385.00 $525.00
$800,000.00 $3,040.00 $3,640.00 $600.00
$900,000.00 $3,420.00 $4,095.00 $675.00
$1,000,000.00 $3,862.00 $4,612.00 $750.00

Below are a few common questions raised about the proposed new north middle/high School and the building proposals.

ASFT, Another common question that comes up, what about the ASFT, Adequate Schools Facility Tax? Why wouldn't it pay for the building program? The ASFT was implemented in January of 2007. This is the $1.00 per square foot tax charged on all new residential construction. And by law, that tax can not be any higher. This money can only be used by the school system for maintenance, construction or debt service for schools. Since implementation in 2007, the ASFT has brought in $15,575,479. Of that $2,201,787.00 has been donated to the Lenoir City school system. The county school system has used the revenue for maintenance, construction or debt service. I do not know what the city schools used their revenue for.

City students in county schools. Loudon County has two separate school systems, the county system and the Lenoir City system.  Obviously, the over development in Lenoir City is having the greatest impact on school enrollment in both school systems. So if Lenoir City's over development is causing all the problems, why not make the city take all the new city students? Unfortunately, that's not how the law works. The county school system must take any students who live in the county, even if they live in Lenoir City. On the other hand, the Lenoir City school system is not required to take county students who live outside the city. So as the city schools reach capacities, they can deny entry to county students. That has already taken place the last two years. As more city students enroll in the city school system, the city schools can deny enrollment to more and more county students. Estimates vary, but it's considered that about 60% of the Lenoir City High School students are from the county.

What about all the illegal immigrant children in the schools? Regardless of the immigration status of a student, under federal law, when a child shows up to enroll, the school systems must admit them. Administrators aren't even allowed to question immigration status or ask for a social security number. As far as the federal government is concerned, there are no illegal immigrants in local school systems.  

Why not combine the two school systems?  This idea has been around for many years and would make a lot of sense. It would take the vote of Lenoir City residents to change the city charter that established the city school system. However, even if the two systems were combined tomorrow, the over crowding problem would be the same. Lenoir City officials are currently hoping to pass a major sales tax increase in hopes to raise revenues for multiple school additions and expansions due to growth. The previous Lenoir City school board chairman has stated that the city school system would consider charging a tuition for county students and the reduction of county students to manage their over crowding problems.

Why Build Now? Loudon High School is nearing capacity now, as are Eaton and North Middle schools. The proposed new school would be a 7-12 grade with a 1,200 student capacity. Upon completion, more than 400 students would immediately be relocated to the new school from North Middle which would allow moving Eaton students to North, freeing up much classroom space in both schools and reducing traffic at those campuses. The unknown number is how many Lenoir City High School students would immediately move to the new school but it is anticipated many will. Given that Lenoir City government has already approved more than 5,000 new residential units by zoning or plat, in the last couple of years, the county school board is trying to get ahead of what's coming. Aside from that, think what the costs would be in another five or more years.     

Where will access for the new school be? Contrary to a couple of social media warriors, the new school will have access from Hwy. 11 and Simpson Road giving the new campus two separate ingress and egress points. The new road between the two roads has been in the plan from conception.  

With so much new residential development in the county and city, why isn't there already enough tax money to pay for the school without a tax increase? The fact is, residential development will not, can not and has never paid for itself. For example, in both the city and county schools, the cost in local funding needed per student is $5,000.00 per year. The average residential property tax in Loudon County is around $800.00 per year. A family with two children would cost $10,000.00 to educate while that same family pays $800.00 in property taxes. The math is pretty simple. On top of that, new residential development puts greater demand on all other county and city services. 

But I don't have children in either school system why should I have to pay higher taxes? The fact of the matter is, over 90% of families in Loudon County and the city don't have children in the school system. In fact, with a population of over 54,000, the two school systems have a combined enrollment of around 7,500, so way more of us do not have kids in school than do. That's always been the case. People years ago with no children in the schools paid for my education and your education.

So, who would have to pay the property tax increase if it passes? Since Lenoir City has their own school system, the property owners in the city would not pay any increased property tax. The burden falls entirely on county property owners. That is ironic given that Lenoir City's uncontrolled planning policies are what has caused the need for for the new school.

How would a new county middle/high school effect Lenoir City schools? It's anticipated that several hundred Lenoir City High School students would move to the new county school. If that happens, it would immediately relieve over crowding at the city high school and would allow the city school system to also move to a middle/high school system that would free up classrooms in their middle and elementary schools just like the county. 

Loudon County property taxes are too high now. The current county property tax is currently, $1.52 per $100 assessed value making that one of the lowest tax rates in the state. Loudon County hasn't had a property tax increase since 2010 and in fact, the tax rate was reduced by four cents in 2014. If a 30 cent property tax increase were approved, at $1.82, the rate would still be lower than most counties in the area.

What about the 80 acres? Back in 2006, the Loudon County Board of Education purchased an 80 acre parcel on Hwy. 321 near the Interstate 40 interchange for $2,200,000. The purchase was controversial from the start. Not only for the price at that time, but the location that far out. The property also had a lot of topography challenges and water and sewer challenges. Much of the land would have been unusable for school purposes. There is also an underground gas pipe line that bisects the entire property. In the last few years, the front 20 acres became a dirt borrow pit for a landfill in Oak Ridge. Ultimately, the board decided to sell the property in 2021. While they did lose about 180k on the sell after 15 years, they did get $2,000,020 for the 80 acres.

Bottom line is, an upper end county high school has been needed for a long time and now with the uncontrolled growth in Lenoir City, it's needed more so than ever. In reality, if not now, when?

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3/4/24