Surplus drained; taxes to rise

AIKEN - Taxes will rise next year because of the school district's slowly depleting surplus fund, which in recent years has allowed it to hold off tax increases related to construction and maintenance borrowing.

The district built up the surplus for several years, beginning in the late 1990s, because of conservative estimates of revenue from property taxes, according to Brock Heron, comptroller.

By using the surplus money to pay off the interest on the construction and maintenance bonds, the district has been able to hold the line on tax increases for two years, Mr. Heron said.

But estimates are that the surplus will be down to between $500,000 and $700,000 by the end of the 2005-06 school year, not enough to pay off the interest on the bonds, Mr. Heron said.

Taxes will increase to 29 mills from 25.5 mills this year.

That would mean a $14 increase in the tax bill of a home assessed at $100,000, Mr. Heron said.

Larry Murphy, a school board member up for re-election this year, said he didn't think the millage increase was unreasonable.

"I feel like we got to do what we got to do," Mr. Murphy said.

School board Chairman John B. Bradley said the surplus has been a tremendous asset in recent years.

"Even though it will be a tax increase from last year to this year, what we've actually done is save taxpayers millage over the last several years," Dr. Bradley said.

Legislation for property tax relief currently before the General Assembly could alter the tax outlook in the district, Dr. Bradley said.

Reach Nathan Dickinson at (803) 648-1395, ext. 109, or nathan.dickinson@augustachronicle.com.