GEORGETOWN — The Indian River School District’s tax rate for fiscal year 2022 will increase slightly, the second consecutive minor hike following a trend of annual tax rate reductions.
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By Glenn RolfeGEORGETOWN — The Indian River School District’s tax rate for fiscal year 2022 will increase slightly, the second consecutive minor hike following a trend of annual tax rate reductions.
Categorical increases in debt service and tuition tax resulted in the overall increase from $3.0541 in fiscal year 2021 to $3.2061 for the upcoming year.
The district’s board of education voted 9-1 Monday to approve the recommendation of Director of Business/Finance Tammy Smith to set the tax rate at $3.2061 — which is the lowest among public school districts in Sussex County.
Board President Rodney Layfield cast the sole dissenting vote.
Based on the district’s “average” assessment of $22,852, the impact would be an increase of $34.74 for the year, which runs July 1, 2021, through June 30, 2022. The county will begin sending out tax bills Sept. 30.
The district’s revised tax rate will generate an estimated $57 million.
The debt service rate is going from $0.1961 to $0.3158, reflecting the need to borrow money for the new Sussex Central High School, currently in its planning stage.
“We have borrowed the first year of bonds for the new Sussex Central High School, and that includes the year two payments that we will be making, as well. The majority of the increase is the borrowing for Sussex Central,” said Ms. Smith.
“We have increased tuition (taxes) slightly to make sure that we have enough funding to cover anticipated expenses.”
The district’s tax rate for minor capital improvements, which is based on 40% that the district owes and 60% provided by the state, is dropping about a penny, from $0.0430 to $0.0343.
“That rate is going down slightly based on the FY22 bond bill. That bond bill has been introduced but not yet passed,” Ms. Smith said Monday.
The current expense tax rate, which can only be changed through public referendum, remains at $2.35.
Each tax is computed on $100 of assessed value.
IRSD’s fiscal year 2020 tax rate was $3.035. From 2015-20, the district lowered its tax rate five of those six years.
Current tax rates of other districts in Sussex County, excluding Sussex Technical School District, are:
“Even with the tax increase, we are still by far lower than any other school district in the county. Without pulling out my calculator, we are under about 20% from the next lowest. We are very prudent with the taxpayers’ money,” IRSD board member Gerald Peden said.
However, district spokesman David Maull added, “We don’t know what changes the other districts are making to their tax rates for FY22.”
