Fayette school board approves higher property tax rate, opting for more facilities.

Amid opposition, Fayette County Board of Education members on Thursday approved an increase of property tax rates for 2022-23 that would both provide revenue for district general operations and add a dedicated revenue stream for school construction and renovation.

Though district officials said the property tax rates would generate enough funding to complete more than half the projects on its current facilities plan, some people criticized the decision.

“Make major cuts (in the district) before you come to the taxpayers for more money,” Ray Davis, who opposed the option that was approved, told board members.

For the 2021-22 fiscal year, homeowners in Fayette County paid property taxes of 80.8 cents per $100 of assessed value.

Board financial advisor Compass Municipal Advisors, LLC had presented two possible new options. With a 4-1 vote for a scenario called Option #2, board members approved a rate that will go from 80.8 cents to 83.3 cents per $100 of assessed value. Board member Stephanie Spires voted against the option.

The only other option presented, Option #1, would have meant the rate would go down from 80.8 cents to 78.5 cents per $100 of assessed value.

Option #1 would have saved 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.

Since the board chose Option #2, which is an increase in revenue of more than 4 percent, the community has 50 days to collect enough signatures to request an election to possibly recall the property tax rate.

Spires said she knows there are Fayette schools that are lacking in facilities. But she said she voted against Option #2 because she was concerned that the property tax rate increase would be recalled and the district would end up with no facilities. She said there would be a potential $400,000 cost for a special election on the recall.

At a heavily attended public hearing on the increase Thursday, Matthew Vied, who is running for a seat on the school board in District 4, said he was in favor of upgrading buildings, but not the increase that was approved. Vied said board members were disingenuous in the way they were presenting the proposed options and called it a “sleight of hand.”

Speakers complained at the hearing that at two minutes each they were not given enough time to explain their concerns.

Mary Lyons, who said she was a retired property owner, told board members that they were responsible to property owners to make sure they were using tax dollars wisely. She spoke against the increase that was approved.

“Did you just assume we were OK with another tax hike?” Lyons asked board members.

Several parents, including Ashley Grupka, spoke in support of the option that received the favorable vote because they want a new facility for Rise STEM Academy for Girls.

“It’s sink or swim and I choose to swim ... if it means getting a new school or renovated schools,” she said.

Jessica Hiler, president of the Fayette County Education Association, spoke in favor of the Option #2 which was approved.

Hiler said some students are learning in portables because of overcrowding. She said the district’s needs call for “a dedicated stream of revenue.”

Task force will evaluate projects

Board member Christy Morris said she voted for Option #2 because the best thing for students is not to be learning in portable buildings and to have up-to-date facilities.

“You all have said you want Fayette County to be a world-class education system,” board member Amy Green said in explaining why she was voting for Option #2.

Board Chairman Tyler Murphy said the district is growing and he’s looking ahead 15 years. He supported Option #2 because he said it would prepare the district for success in the future.

After the vote, Murphy said he intends to ask the board at its next meeting to direct the superintendent to establish a task force of students, families, employees, and community members to evaluate the projects on the facilities plan, recommend a priority order to the board, and oversee the utilization of the building funds.

“With the support of our community, the board will move swiftly to tackle the projects on our list to improve the learning environments for our students and the working environment for our employees,” Murphy said. “We are committed to transparency, open communication, and engagement with all stakeholders as we move forward.”

Possibility of recall election

There is no provision in state law that allows the school board to put the question to a vote of the community. The only way to do that is to first adopt the rate and then have a recall election, district officials have said.

Under Option #1, the district would have has $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, district officials said.

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 current district plan has $1.2 billion in unmet need, district officials said.

“Our community had the foresight 15 years ago to invest in school facilities and construction,” Fayette County Public Schools Superintendent Demetrus Liggins said in a statement. “Since then, FCPS has grown by nearly 8,000 students and 34 of the district’s 64 school buildings are new or completely modernized to meet 21st century standards.”

Officials said 30 of the district’s 64 schools have not been touched in at least 15 years and the average time since their last renovation or construction is 25 years.

Big projects on the horizon

Possible projects 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

There are also plans for a new Carter G. Woodson Preparatory Academy, and a new and expanded SCAPA.

District officials want to modernize or replace Dunbar, Henry Clay, and Lafayette high schools; Beaumont, Southern, or Winburn middle schools; Booker T. Washington, Northern Elementary, MLK Academy and Harrison Elementary.

The district also wants to eliminate 96 portable classrooms -- currently holding 2,450 students at 17 schools.

The school board determines the order in which projects are completed.

The current 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 board members face is based on the total value of property in their county.

A third option of keeping the tax rates the same was not considered.

Keeping the property tax rate the same is allowable under state law, but since it is higher than the rate that allows for a 4 percent increase in revenue, it would still be subject to recall, district officials have said.

Additionally, it would not provide enough revenue to be dedicated as a “facilities nickel.”

The additional money generated by Option #2 is restricted and can only be used for facilities.