Fayette County Board of Education considering two property tax options

A public hearing on the two options will take place on September 8 at the John D. Price Administration Building

LEXINGTON, Ky. (WTVQ) – Fayette County Board of Education members in Lexington are weighing two options for local property tax rates. According to the district, every year, school boards in Kentucky are required to set local property tax rates that generate revenue to fund public schools. This is a routine matter that happens each August, and the choice board members face is based on the total value of property in their county.

According to the district, for the 2021-22 fiscal year, homeowners in Fayette County paid property taxes of 80.8 cents per $100 of assessed value. During Monday’s regular monthly Fayette County Board of Education meeting, board financial advisor – Compass Municipal Advisors, LLC, – presented two possible options for the 2022-23 fiscal year:

Under Option #1, the rate would go from 80.8 cents to 78.5 cents per $100 of assessed value.
Under Option #2, the rate would go from 80.8 cents to 83.3 cents per $100 of assessed value.

Both options would provide revenue for the general operation of the district. Option #2 would also add a dedicated revenue stream for construction and renovation.

Here are the details:

With Option #1, the district would have $188.5 million in bonding capacity right now, and another $48.5 million over the next five years. After that, the district could not finance any additional projects until 2037. Option #1 provides enough to complete about three projects immediately.

With Option #2, the board would have $540 million immediately available to borrow for construction and renovation projects, and continuous facility funding though 2037 and beyond. Option #2 provides enough to complete about 12 projects immediately.

The District Facilities Plan, which was developed by a committee of stakeholders and approved by the school board, lists all of the current construction and renovation needs for FCPS. The school board determines the order in which projects are completed.

Option #1 would save the owner of a $100,000 home $23 this year compared with 2021. Option #2 would cost the owner of a $100,000 home $25 more this year compared with 2021.

No decision has been made. Monday was the board’s first opportunity to hear the presentation from the financial advisor and ask questions.

A public hearing, where members of the community can comment on the two options will take place at 6 p.m. on September 8, 2022, at the John D. Price Administration Building. The board will vote at the end of the public hearing.

Those wishing to share input with members of the Fayette County Board of Education before the public hearing can reach all five by emailing feedback@fayette.kyschools.us.