Owensboro holds required public hearing; commission lowers real property tax rate for 2025–26

The City of Owensboro on Sept. 16 conducted a public hearing on its proposed 2025 property tax rates as required by Kentucky Revised Statute 132.027 and later approved the levy ordinance on second reading.

At the public hearing the city clerk, Angela Wiger, summarized the numbers: last year’s real property tax rate was $0.261 per $100 of assessed value, producing $11,508,071 in real-property revenue. The city’s compensating rate was stated as $2.245 (as read in the transcript). The city proposed a real-property rate of $0.256 per $100, which Wiger said would produce $12,160,909 in revenue; revenue from new property was estimated at $111,727. She also reported a proposed personal-property rate of 0.3091 (30.91¢) projected to yield $1,429,014.

During the public hearing, commissioners asked clarifying questions about the city’s bond rating and debt service. Wiger said the city gets an annual credit update from rating agencies (Moody’s) and that while upgrades are possible, it can be difficult to recover from a downgrade.

On second reading later in the agenda, the commission approved Ordinance 16-2025 to set the 2025–26 tax rates. Finance staff explained the change reduces the real-estate rate from 26.1¢ to 25.6¢ per $100 of assessed value; the vehicle rate remained unchanged at 30.3¢ per $100. City staff said the general fund’s share of the city’s total debt is small (3.4% of total debt; less than 1% of the general fund budget).

The ordinance passed on roll call with affirmative votes from commissioners present, and the rates will be reflected in the fiscal year beginning July 1, 2025.

The city clerk recorded the ordinance for publication and administration.