To the Editor:

First, thank you – the Fayette Advertiser is a real community asset. Local papers like yours serve as vital resources that help foster our sense of community while keeping us informed about local events, issues, and opportunities. As well, the value of the medium being an appropriate platform for discourse should not be understated. It is in this vein that we respond today. As Howard County’s sole economic development organization, we read with interest your interpretation of the change in local property tax rates as an economic indicator and offer the following for your consideration.

While it’s easy to interpret the slight increase in Fayette’s property tax rate for 2024 as an economic red flag, it is important to take a broader view. Yes, the property tax rate has risen slightly from $0.5907 to $0.5929 per $100 of assessed valuation, but this does not necessarily indicate a faltering economy. Rather, it reflects standard fiscal adjustments designed to ensure consistent municipal revenue, even amidst fluctuations in property values.

Important to note is, the increase is minimal—just 0.0022 per $100—which represents the city's responsible fiscal management, not an alarming economic shift. As the article points out, this adjustment is set by the county and state auditor to balance revenue as property values change. It’s not a symptom of economic decay, but rather an essential mechanism to keep city services running smoothly.

Additionally, property value fluctuations can be influenced by many factors, including broader national trends such as rising interest rates. Fayette is not unique in this situation. City attorney Nathan Nickolaus mentions seeing this same scenario across other cities, which indicates that local property tax rates are responding to larger economic forces, not solely local economic issues.

Rather than being a signal of economic regression, the property tax adjustment ensures the city can continue to provide the services and infrastructure necessary to support future growth. Fayette has seen recent economic progress, and a couple of business closures on the square should not be seen as a full indicator of economic downturn. Business turnover is natural in any local economy, and Fayette remains poised to attract new businesses and development opportunities.

In closing, the slight tax rate increase is part of a well-established process to maintain fiscal balance and should not be interpreted as an indicator that the communities in our county are faltering. Rather, it demonstrates an ongoing commitment to stable financial planning amid broader economic trends.

Howard County Economic Development Council