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LOCAL REVENUE OPTIONS
Board members heard a presentation from Compass Municipal Advisors, LLC, – the financial advisor for the Fayette County Board of Education – about two possible revenue options for the 2022-23 fiscal year.
Every year, school boards in Kentucky are required to set local property tax rates that generate revenue to fund their 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.
For the 2021-22 fiscal year, homeowners in Fayette County paid property taxes of 80.8 cents per $100 of assessed value. For the 2022-23 fiscal year, Compass outlined two choices for the board:
- Option #1: The property rate would go from 80.8 cents to 78.5 cents per $100 of assessed value to provide a 4 percent increase in the local revenue for general operations of the district.
- Option #2: The property rate would go from 80.8 cents to 83.3 cents per $100 of assessed value to provide a 4 percent increase in the local revenue for general operations of the district and create a dedicated funding stream for facility needs.
Under Option #1 the board would have $188.5 million available for renovation and construction right now, and $48.5 million over the next five years. That is enough to complete about three projects, but the board could not finance any other building needs until 2037.
Under Option #2 the board would have $540 million available for renovation and construction right now. That is enough to complete about 12 projects immediately and provide continuous facility financing through 2037 and beyond.
No decision has been made.
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.
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