3 school projects or 12? Fayette board asks which option citizens prefer for local revenue
Fayette County Board of Education members are weighing two options for local property tax rates that district officials say could have a significant impact on school construction and renovation.
The situation follows historic growth in local home values, district officials said.
Every year, school boards in Kentucky are required to set local property tax rates that generate revenue to fund their public schools. The choice school board members face is based on the total value of property in their county.
For the 2021-22 fiscal year, homeowners in Fayette County paid property taxes of 80.8 cents per $100 of assessed value.
At Monday’s school board meeting, staff from the board’s financial advisor – Compass Municipal Advisors, LLC, – presented two 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.
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 that the board would decide on.
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 and approved by the school board, lists all of the current construction and renovation needs for the school district. The school board determines the order in which projects are completed.
Those could include a proposed new $83 million middle school on Lexington’s Polo Club Boulevard, a $74. 8 million career and technical center on Midland Avenue, $30 million in general maintenance and a new $63.1 million Rise Academy for Girls.
Other proposed projects are elementary schools on Polo Club Boulevard and in Masterson Station, a pre-school center at what is now the Southside Career and Technical Center and the renovation of Dunbar High School.
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.
If the school board chooses Option #1, the rate would take effect immediately with no further action. If the school board chooses Option #2, the rate could be subject to recall.
No decision was made Monday night.
A public hearing, where members of the community can comment on the two options is at 6 p.m. September 8 at the John D. Price Administration Building at 450 Park Place.
The board will vote at the end of the public hearing.
Those wishing to share ideas with members of the Fayette County Board of Education before the public hearing can reach all five by emailing feedback@fayette.kyschools.us.