FORT THOMAS — The five-member school board has approved an 11 percent property tax increase, significantly less than the 32.4 percent increase first proposed.

        Because the 7.7 cent increase is higher than the 4 percent limit placed on increases by the state, the district also voted to put money in escrow for an expected legal challenge.

        The lower increase rate was passed because board members feared burdening residents, despite what many call a funding crisis in this bedroom community.

        The decision came after a public hearing in which many of the more than 25 people who spoke about the increase questioned whether officials in the 2,300-student district had done everything possible before looking to boost property taxes by up to 32.4 percent.

        “There was opposition — it wasn't a lot,” school board chairman Brad Fennell said. “Certainly, opposition was expected.”

        District officials said the tax rate they were proposing — which didn't have the full support of the school board — would have been enough to address their needs for the next six years, including the current school year.

        The new tax rate of 77.7 cents per $100 of assessed value of real estate and tangible-property was unanimously approved Thursday, and is expected to produce about $1.5 million more a year. The new rate takes effect immediately.

        Superintendent Larry Stinson said the new rate will help provide more money for operating expenses such as teacher salaries, but it won't be enough to fix the dilapidating school buildings.

        “We hear things from the state that maybe there will be some movement there to help address the schools that are in the worst condition,” he said, “but we don't know what that is yet or when (it could happen). And if nothing really develops then we will probably have to come back and approach the public again.”

        The increase will cost the owner of a $150,000 house an additional $116 a year in property taxes, bringing the total tax bill to $1,166 annually. The 2000 median housing value in Fort Thomas, according to the U.S. Census, was $131,500, and the 2000 median household income was $49,575.

        Mr. Fennell said he favored the 7.7-cent rate hike because he doesn't think residents should be taxed so much.

        “My top priority is getting on with the legal campaign against the state to fight their inequitable (SEEK funding) formula,” he said. The board also agreed to put $500,000 from the increase into an escrow account for the battle and hire a legal team by the end of 2002.

        “Basically, what we sacrificed here by dropping the tax rate was our building fund, which means that unfortunately we're going to have to take on this legal campaign and hopefully positive things will result from that ... and we will be able to address our building needs in the very near future,” Mr. Fennell said.

        Although the school board approved the property tax increase, voters could recall it under state law because it exceeds 4 percent.

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