Come November, Lexington voters will decide if they want to pay a new tax for park projects.
The Lexington-Fayette Urban County Council voted unanimously Thursday to approve a ballot referendum allowing voters to decide if they want a separate taxing district for parks.
It’s the first ballot referendum to create a new taxing district in 20 years.
The proposed tax would generate roughly $8 million per year for capital projects. Under state law, the taxes generated from the new district could only be used for parks projects. The city could not tap the fund for other costs.
Voters will have an opportunity to vote the tax up or down on Nov. 5.
Under the proposal, an average homeowner would pay an additional $52.88 per year in property taxes.
Parks Sustainable Funding, a nonprofit created to drum up support for the referendum, has said public parks are one of the city’s most used public resources.
The city is not directly involved in the campaign. Referendums can be placed on the ballot through a signature drive or by a vote of the council.
A 2018 parks master plan showed 90% of Lexington residents use public parks. More than 57% of Fayette County residents visit or use parks at least once a month, according to the master plan. That parks master plan also showed the city needed $100 million in upgrades and improvements, or funding of roughly $5 million a year.
Backers of the referendum say funding capital projects with cash generated from the new tax is more fiscally responsible than borrowing for capital projects.
The city borrowed or used bond funds for $4.1 million for parks capital improvements this year on top of general fund and surplus money to pay for repaving of parking lots, constructing or replacing playgrounds and building pickleball and other sport courts.
The new tax would only pay for capital projects. The Parks and Recreation Department’s operating budget would still be funded through the city’s general fund, or main check book. The park’s operating budget for the current fiscal year is $27 million, according to budget documents.
Several council members have previously said they did not support increasing taxes but backed the referendum to allow voters to decide.
David Lowe, one of the backers of referendum, has said public polling shows strong support for separate taxes for parks. Across the country, the Trust for Public Land, a nonprofit that promotes preservation of green space for public use, shows 83% of public referendums for taxes for parks or preservation of green space are successful.
Still, with Fayette County property values steadily increasing, many homeowners have already seen a jump in property taxes over the past decade. The city has not raised its portion of property taxes in decades. It has increased a separate tax to fund street lights, most recently last year. More than 100,000 Fayette County home owners pay a separate street light tax.
The Fayette County Public School system, which receives the bulk of property taxes, has raised its taxes multiple times over the past decade.
There are multiple taxes on property tax bills that fund services and government agencies. The bulk of most property taxes go to the schools and the state. Other taxing districts include the Fayette County Soil and Water Conservation District, Lextran, Fayette County Cooperative Extension Service and the Lexington-Fayette County Health Department.
The last time voters approved a separate taxing district was for Lextran in 2004.