What you must understand
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The Alexandria City Council kept the 2025 property tax rate at $0.14 per $100 of assessed value, unchanged from last year.
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Despite the flat rate, the city expects to collect about $29,000 more in revenue.
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Officials say the additional funds will go into the general fund to support needs such as police pay, street paving and services for a growing population.
Alexandria’s proposal will still increase revenue in 2025 even if the city maintains its property tax rate at $0.14 per $100 of assessed value.
The Alexandria City Council set the 2025 property tax rate at $0.14 per $100 of assessed value, the same amount as the previous two years, during a first reading on August 21. The $0.14 rate from the previous year generated $1,828,038 in revenue. Without new property, this year’s rate is anticipated to generate $1,877,550.
The compensating rate
of .138 is expected to produce $1,850,727 in revenues. The compensating tax rate is the tax rate a taxing body needs to charge to bring in the same amount of tax money on real property as the previous year. A compensating tax rate can be greater or less than the preceding year, depending on how much property values have changed.
How do property taxes work?
There are various categories for property taxes. Real property tax, often known as real estate property tax, is the initial and typically largest portion of your tax payment. In essence, this is a fixed tax on everything you own. For locals, this refers to homes and other real estate. For companies, this refers to office buildings as well as other structures and facilities that are utilized for business purposes.
However, another type of property that isn’t real estate is tangible personal property. Residents may not be subject to any personal property taxes, depending on the jurisdiction in which they reside.
There can be additional tax-related expenses depending on where you live.
Go here to learn more.
There are various categories for property taxes. Real property tax, often known as real estate property tax, is the initial and typically largest portion of your tax payment. In essence, this is a fixed tax on everything you own. For locals, this refers to homes and other real estate. For companies, this refers to office buildings as well as other structures and facilities that are utilized for business purposes.
However, another type of property that isn’t real estate is tangible personal property. Residents may not be subject to any personal property taxes, depending on the jurisdiction in which they reside.
There can be additional tax-related expenses depending on where you live.
Go here to learn more.
Alexandria suggested raising the compensatory tax rate. The extra money raised will be used for routine municipal operations and to cover the general expenses of running the city’s government.
The expected revenue generated from new property is $29,290.
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Councilmember Graus, who is also the chair of the Alexandria Finance Committee, stated that the city does not have a lot of financial sources. We must examine every source of funding. It goes without saying that we will lose that money if we lower taxes to the compensating tax rate.
According to Graus, if taxes were cut, they would have to start looking for other ways to make up the difference, like increasing insurance taxes or any other place where the city has the authority to do so.
Alicia Mueller, a resident of Alexandria, asked the city what it plans to do with the extra money during Thursday’s tax rate public hearing.
Everyone knows that the taxes in Fort Thomas are fairly reasonable, which is why I moved here, Mueller said. I commend the community for putting forth all of these developments and attempting to build the city that we are, but I have a question for each of you: what will the additional funds be used for specifically, in contrast to Fort Thomas, which is funding a school system that has funded many other things?
According to Graus, the city’s general fund will receive the remaining funds. According to him, the city has obtained funds, including bond financing, for the construction of its new municipal complex.
He added that the city is also dealing with an expanding population, which necessitates additional resources.
We have to purchase more services because of the increase in residences due to developments and other factors, and we must be constant, he said.
According to Graus, the city anticipates needing another public works worker.
According to Councilmember Tom Baldridge, who chairs the Alexandria Public Works Committee, the city spends about $500,000 annually resurfacing streets as part of a five-year rolling program. Baldridge expressed his desire that a portion of the remaining funds could also be used for street pavement.
According to Graus, the city is also working to make police salaries more competitive. He claimed that other counties and cities are stealing from them.
Another item on Thursday’s agenda was to increase the police sergeant’s salary from $75,000 to $80,000. According to Alexandria Police Chief Lucas Cooper, several police departments he is aware of begin hiring sergeants at $80,000 rather than at that level.
It s everyone around us, you start looking at Florence and they are starting recruits at what we are probably paying a sergeant, Cooper said.
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