Navarro College trustees turned down an administration request to raise the district’s property tax rate from 11.9 cents to 12.3 cents for every $100 in appraised value.

Dr. Richard Sanchez, college district president, and Gettie Moreno, vice-president for finance and administration, made the proposal for the tax rate hike at Thursday’s monthly board meeting after trustees approved the proposed $106 million budget for the coming year, a budget that was developed using the existing tax rate of 11.9 cents.

Sanchez said the college needed the tax rate increase due to a decrease in state funding expected over the next two years.

“We’re going to be losing about $3 million in appropriations, and this year we lost $1.5 (million),” Sanchez said. “Over two bienniums, we’re $5 million short.”

Raising the tax rate from 11.9 cents to 12.3 cents, which Sanchez called a “modest increase,” would generate about $99,376 in additional revenue for the college, he said Thursday. The cost for a homeowner with a $100,000 house would be about $4 in additional property taxes a year, according to information prepared for a resolution on the suggested increase.

There was confusion among some trustees over the amount of additional revenue the proposed tax rate increase would bring to the college, and how much of an revenue increase was being sought by the Sanchez proposal, said Lloyd Huffman, board chairman, following Thursday’s meeting. The board’s vote to state the intent of setting the tax rate at 11.9 cents per $100 valuation — the same rate as the current year — was unanimous.

Trustee Phil Judson said present economic times, and public perception of a tax increase by the college, were reasons he was against any increase.

“Through all the budget proceedings and the preparation we went through … we talked about making up the shortfall through tuition increases,” Judson said. “Nothing was said about the possibility of a tax increase. I’m concerned about the perception of it, even though it is a small, minute amount.”

Sanchez said if trustees left the tax rate unchanged, he would suggest an increase in tuition and fees for the Fall 2011. That would come on top of a $1 increase per credit hour approved Thursday for Spring 2011.

He also cautioned trustees that additional increases in out-of-district tuition and fees could impact enrollment from Ellis County and at the college’s two Ellis County campuses — Waxahachie and Midlothian.

“I don’t want to get us in a position that we are so high that Tarrant and Dallas (Community Colleges) become attractive, because Tarrant and Dallas have always been below us in out-of-district (costs),” Sanchez said. “We’ve been below them in tuition, but they’ve been below us in out-of-district … I wouldn’t want to direct those students from Ellis County toward Tarrant and Dallas.”

Ellis County students pay out-of-district fees to attend Navarro College, but Ellis County property owners are not subject to the ad valorem property tax that Navarro County property owners pay.

Trustee “Buster” Atkeisson also voiced concern about a tax rate increase, even a small one, and suggested a tuition increase would be a better approach.

“Spread the burden on those who actually use the college,” he said. “But I do agree with Dr. Sanchez, we don’t want to spread the burden so much that other institutions become more attractive to them.”

Action taken by the trustees Thursday — in compliance with a very strict state-mandated timeline — was to indicate their “intent” to set a tax rate of 11.9 cents per $100 valuation, but that rate won’t officially be set until later in September after public hearings on the rate are held, and then a final vote by trustees is taken.

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Bob Belcher may be reached by e-mail at belcher@corsicanadailysun.com. Want to “Soundoff” on this story? E-mail: soundoff@corsicanadailysun.com

NAVARRO COLLEGE MEETING BRIEFS

By Bob Belcher/Daily Sun Staff Writer



Tax abatements approved

 Trustees approved two tax abatement requests for Russell Stover Candies. The company is planning to launch production capabilities for two new candy lines at its Corsicana plant. Other taxing entities have already approved similar abatements.



Budget adopted

A $106 million operating budget for 2010-2011 was approved by trustees on a unanimous vote. The budget includes an approximate $20 million increase is student financial aid over the present budget, according to Gettie Moreno, vice-president of finance.



Consent agenda, financial reports approved

Minutes for board meetings of July 13 and July 22 were approved, and the July financial statement was reviewed and approved by trustees.



Spring tuition increase approved

Trustees approved a $1 per semester credit hour increase in tuition and out-of-district fees effective with the Spring 2011 semester. The increases will bring in approximately $186,168 in additional revenue to the college.



College Web site reviewed

Donna Parish, director of marketing, gave a demonstration of “virtual campus tours” now available on the college’s Web site. Several short video presentations available online highlight different aspects of college life at Navarro.



Enrollment could top 11,000

Dewayne Gragg, dean of enrollment management, told trustees if trends continue, total college enrollment could top 11,000 in the Fall 2010 semester. Higher enrollment numbers for summer were also reported. The Fall 2010 semester beings Aug. 30.