Increased property values to increase FCPS revenue

LEXINGTON, Ky. (WTVQ) – It’s a case where a tax cut might not mean a lower tax bill.

Fayette County Board of Education members were told Friday they can lower the district’s property tax rate slightly by 0.2 cents and still generate a 4% increase in revenue for school services.

The board proposed to levy a total rate of 80.8 cents for real estate and 80.8 cents for personal property per $100 of assessed valuation.  That is 0.2 cents less than last year’s real estate rate; however, the reduced tax rate might not lower tax payments because property values in many parts of Lexington have increased significantly.

Board members say educating the public on the process will be important to heading off a backlash.

“We know that families are hurting right now. We know we don’t want to tax any additional tax. We really want to hold as well as we can,” said Board of Education Member Stephanie Spires.

The board is scheduled to hold a public hearing on Aug. 23. The district has until the end of the month to submit the rates to the Kentucky Department of Education.

Friday evening, new Superintendent Demetrus Liggins sent out a letter to school families about the proposal to lower the property tax rates for the 2021-22 fiscal year.

Supt. Liggins’ letter is below:

Dear Fayette County Public Schools Families:

I’m writing with good news! Following a work session with the Fayette County Board of Education this afternoon, our district will advance a proposal to lower property tax rates for the 21-22 fiscal year.

Each August, school boards across Kentucky have the responsibility of setting property tax rates to generate revenue to pay for their local schools. Those rates are calculated based on the total value of commercial properties and homes in each community.

For the past two years, Fayette County property owners have paid 81-cents for every $100 of assessed valuation.

Thanks to our healthy real estate market, home prices in Lexington have risen over the past year. And that will allow the school board to lower the tax rate to 80.8 cents per $100 of assessed valuation and still generate the revenue needed to:

• Expand Rise STEM Academy for Girls,
• Open the Carter G. Woodson Preparatory Academy,
• Purchase textbooks and instructional resources for all schools,
• Increase salaries for FCPS employees for the first time in five years,
• Cover increasing utility rates and insurance costs,
• Pay teachers for an additional day to prepare their classrooms, and
• Adjust the salaries of hourly employees to acknowledge prior industry experience.

Members of the community will have the opportunity to speak at a public hearing about the proposal to lower property tax rates prior to the school board meeting on August 23.

Demetrus Liggins, PhD