The Fayette County Board of Education is set to adjust property tax rates in September, seeking to boost revenues for the district by 4%.
The school board voted unanimously Monday at its regular action meeting at the John D. Price building to formalize its intent to move forward with the altered rates.
That includes a tax on real estate at 79.7 cents per $100 of assessed value, down from 79.8, and a personal property rate of 81.1 cents, adjusted from 83. The motor vehicle tax rate would hold steady at 59.2 cents under the plan.
The plan will produce an additional $13.6 million at a time the district faces a deficit of $15 million, according to finance staff.
“It’s not a 4% increase in the rate, it’s a rate that will allow a 4% increase in revenue. Some people understand that, some people don’t,” board member Amanda Ferguson said.
While the real estate and personal property tax rates would drop, some taxpayers would see increased bills as assessed values in Fayette County continue to climb.
The revenue projections are based on nearly $3.17 billion in total assessed value and $472 million in personal property, according to information provided by the finance department.
Interim chief finance officer Kyna Koch said the district’s tentative budget is based on the board adopting the 4% levy bump, with a collection rate of 98%. She said if the board opted out of the increase, FCPS can expect more cuts.
“It would affect our revenue for (fiscal year) 27, and then we would have to reduce expenditures to match that lack of revenue,” she confirmed.
The district faces another deficit amid fallout from years of financial mismanagement. Multiple outside audits have cited a lack of internal controls, poor governance and other factors contributed to a depleted contingency fund and significant shortfalls, resulting in layoffs and frozen spending.
Two members of the public spoke on the tax rate Monday night, urging the board to take mindful action.
“New taxes can make a difference in whether one stays in their home or not,” speaker Loney Burns said.
The intent to adjust the tax rate came Monday as the board also accepted the retirement of Superintendent Demetrus Liggins, who announced his departure Friday.
The board did not give details on his retirement, nor the contents of a now-concluded investigation into his conduct, which was also unanimously accepted Monday night. That report is set to be made public following redactions.
