Lexington Voters Approve New Property Tax to Fund Public Parks Improvements

Lexington voters have taken a significant step toward enhancing the city’s public parks by approving a new property tax dedicated to capital improvements. This measure, passed in early November, marks the first new taxing district established since 2004, when funding was allocated for Lextran, the city’s public transportation system.

The newly approved tax, set at 2.25 cents per $100 of assessed property value, is projected to generate approximately $8 million annually for Lexington’s 100 public parks. City officials are currently in the process of determining the management and allocation of these funds, with more detail expected to be released in early 2025, according to city spokeswoman Susan Straub.

Lexington has a total of six special property tax districts that receive local property tax revenues, including Fayette County Public Schools, the Lexington-Fayette Urban County Government, and others. However, there is currently no centralized source for taxpayers to find how much revenue each district collects annually. A recent inquiry found that neither the Fayette County Property Value Administrator nor the Fayette County Sheriff’s Office could provide a complete overview of last year’s tax revenues.

Taxpayers have limited access to financial transparency regarding how property tax funds are utilized across various districts. While some agencies voluntarily share financial information on their websites, others do not. Notably, the Fayette County Public Schools received $317 million, accounting for about 66% of all local property taxes last year, and actively publishes its budgets and spending details online.

In comparison, the Lexington-Fayette Urban County Government generated $30.1 million in property taxes last year, but a significant portion of those funds will be redirected to the Lexington Public Library system due to a legal settlement dictating that 5 cents of every $100 in property value be allocated to the library.

Other taxing entities are less forthcoming with their financial data. For instance, while the Lexington-Fayette County Health Department received approximately $9.8 million in property taxes, it does provide accessible financial documentation on its website. Lextran received more than $24.4 million in property taxes last year, but its financial details are not available online; however, the agency plans to update its website with this information in the future.

Amidst calls for greater transparency, the most effective model for sharing financial information appears to be the Fayette County Conservation District, which, despite receiving only $187,000 in property taxes, has maintained a comprehensive online financial presence for over six years as a best practice.

The absence of a requirement for taxing districts to regularly disclose their financial matters raises questions about accountability in public spending. While some districts provide detailed reports to state authorities—available to the public through the Department of Local Government’s online database—many taxpayers remain unaware of its existence.

As the new parks tax is implemented, the focus on financial transparency for all taxing districts will likely become increasingly important for Lexington residents.