Proposed Odenville/Margaret Tax

In 2025, St. Clair County ranked 131 out of 139 school systems for per pupil funding in Alabama. The funding the school system currently receives that is eligible for capital projects is limited. A new middle school is expected to cost $35-40 million. Just like most families don’t have cash to pay for a house in full, the school system does not have $35-40 million in reserves to pay for a new school. Construction would be financed through a bond (loan), and additional revenue would be required to secure and repay that bond.

Estimated annual revenue is approximately $2,900,000, though actual collections will vary based on assessed property values. The proposed tax would be for 30 years.

Under Alabama law, 100% of the funds generated by the proposed tax must be spent in Odenville/Margaret Schools. If approved, the tax revenue would be used to secure a bond (debt). The proceeds from the bond could only be used on capital projects in the Odenville/Margaret attendance zone. The primary purpose of the bond proceeds would be to fund a new Odenville Middle School on the campus of St. Clair County High School.

Yes, the tax revenue can be used for any public-school purpose. However, the proceeds generated from a bond can only be used on capital projects, such as a new school. If the tax were to pass, the school system anticipates a limited amount of the tax revenue could be used for other student-related expenditures in the Odenville/Margaret attendance zone. Examples include additional teachers, technology, furniture, and extracurricular support. Only 80% of the tax revenue would be expected to be used to secure a bond. The remaining additional revenue would be available each year for other uses and that revenue could only be used in the Odenville/Margaret attendance zone.

The Board of Education plans to establish an Odenville/Margaret Community Advisory Committee to make recommendations on the use of the remaining revenue within the attendance zone. The Board of Education retains the final legal responsibility to approve all expenditures.

Under Alabama law, ad valorem taxes are calculated based on a property's assessed value, which varies by classification. Owner-occupied residential property is assessed at 10% of appraised value. For such property, a 15-mill increase adds approximately $1.50 per $1,000 of appraised value to the annual ad valorem tax. For example: a home with an appraised value of $100,000 would see an increase of approximately $150 per year; $200,000, approximately $300 per year; $300,000, approximately $450 per year. Property not classified as owner-occupied residential is assessed at a higher percentage of appraised value and would see a proportionately larger increase. Actual amounts will vary based on assessment, exemptions, and classification.

Based on current growth rates, the Board of Education anticipates that Margaret may need its own middle school and high school in future years. The Board has determined that establishing a middle school in Margaret without a corresponding high school would present significant operational challenges. Under the current proposal, Margaret students in the affected grades would attend the new Odenville Middle School.

No. Amendment 972 to the Alabama Constitution (Ala. Const. § 59-10.21) provides that the proceeds of a school district tax may not supplant or reduce any other funds distributed for the benefit of the school system or the tax district. Odenville and Margaret Schools would continue to receive their share of state, county, federal, and local funds on the same basis as other schools in the system. This requirement governs the effect of the new tax. It does not prevent changes in funding that result from state or federal funding formulas, enrollment changes, or the expiration of one-time funds.

If the measure does not pass, the proposed tax would not be levied and property tax rates in the Odenville School Attendance and Tax District would remain unchanged. The school system would not receive the estimated $2,900,000 in annual revenue, would not secure the bond described above, and the new Odenville Middle School would not be constructed under the current proposal. Odenville Middle School students would continue to attend the existing facility.

Pursuant to Ala. Code § 17-17-5.1, this information is provided by the St. Clair County Board of Education for the purpose of informing members of the public about the upcoming election, providing objective analysis or factual information about the local ballot measure, and encouraging citizens to vote. This communication does not advocate a position on the proposed millage.