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Council approves personal property tax relief, bond authorization and water-rate change in unanimous votes
Summary
At its Feb. 20 meeting, the Lexington City Council unanimously approved a 44% personal property tax relief rate for 2025, authorized up to $23 million in municipal bonds with a 5.5% interest cap, and adopted an ordinance reducing the Tier 3 water rate to the Tier 2 level for high-volume customers.
Lexington City Council members voted unanimously Feb. 20 to set the city's personal property tax relief percentage at 44% for 2025, to authorize issuance of up to $23,000,000 in municipal bonds at up to 5.5% interest, and to adopt an ordinance reducing Tier 3 water rates to equal the Tier 2 rate for large institutional customers.
The votes came after staff presentations and brief discussion. Karen Roundy, Lexington Commissioner of the Revenue, told the council she and the treasurer were "requesting the 44% again" for the personal property tax relief program, the same percentage the city used last year. The council approved Resolution 2025-05 by roll call: Miss Strong, Mister Ziegler, Mister Betts, Mister Smith, Mister Driscoll and Miss Alexander each recorded "aye."
On municipal debt, the council considered a resolution authorizing the city to borrow up to $23,000,000 with a not-to-exceed interest rate of 5.5% to fund multiple capital projects including the DSS building, City Hall renovation, Jackson Street water and sewer phase 1A, and stormwater work on Diamond and White streets. City staff and bond counsel outlined the timing: the bonds will be priced in early March with closing and funds received in late March. The council approved Resolution 2025-06; the roll call again was unanimous.
The council also adopted Ordinance 2025-01 to lower the Tier 3 water rate to the Tier 2 rate for customers whose monthly consumption reaches the highest block. City staff said the change affects four customers that can reach Tier 3: Virginia Military Institute, Washington and Lee University, The Hampton (hotel) and Carilion Hospital, and that typical residential or commercial customers will not be affected. A motion to adopt the ordinance passed on a unanimous roll call vote.
Votes at a glance - Resolution 2025-05 (personal property tax relief for tax year 2025): Motion approved; roll call: Miss Strong (aye); Mister Ziegler (aye); Mister Betts (aye); Mister Smith (aye); Mister Driscoll (aye); Miss Alexander (aye). Outcome: approved. - Resolution 2025-06 (authorize issuance of municipal bonds up to $23,000,000 at up to 5.5%): Motion approved; roll call: Mister Betts (aye); Mister Smith (aye); Mister Ziegler (aye); Miss Straub (aye); Mister Driscoll (aye); Miss Alexander (aye). Outcome: approved. - Ordinance 2025-01 (reduce Tier 3 water rate to Tier 2 for affected customers): Motion approved; roll call: Mister Driscoll (aye); Mister Ziegler (aye); Miss Straub (aye); Mister Betts (aye); Mister Smith (aye); Miss Alexander (aye). Outcome: approved.
The meetings' formal roll-call records supplied by the clerk are the basis for the vote tallies reported here. No amendments or failed motions were recorded on these items at the Feb. 20 meeting.
Ending: The council closed the public hearings on the bond and water-rate items before taking the votes; staff said bond pricing and any required closings are expected in March.
