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City council moves to rethink the need to raise occupational tax revenue

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Tuesday, Aug. 25, 2015, 11:53 p.m. — The Bardstown City Council discussed raising the city’s occupational tax Tuesday night, but in the end, decided instead to table the matter until its next meeting Sept. 8.

The members of the council each had different ideas on how the city should fund the general fund — and questioned if it is necessary to make immediate changes at all.

Councilman Fred Hagan told the council that after talking to former mayors and council members, he had changed his view about the use of utility revenues to fund the general fund.

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Councilwoman Kecia Copeland weighs in during discussion about the occupational tax changes.

“I’ve come around to the belief its acceptable to use the utilities to support the general fund,” Hagan said. “I’ve changed my mind.”

Hagan advocated slowing the rush to raise taxes in order to give the real need for funding more careful study.

The city has $12 million in unrestricted reserves in the current budget, which allows the city to fund the budget without taking immediate action, he said.

“I’d like to slow-walk into it and maybe do a little bit this year,” he said. “And even if we don’t do anything this year, we’re not going to be in trouble.”

Hagan suggested the council consider raising property tax revenue by 4 percent, and then consider raising the occupational tax rate slightly, from 0.5 to 0.6 while also taking off the cap. He said he would rather go for a small increase and evaluate if an additional increase is needed.

“I’d rather do a little bit now, and the look at it again next year,” he said.

Councilwoman Kecia Copeland agreed with Hagan’s suggestion the council slow down on raising taxes. She suggested taking the cap off the occupational tax this year and the assess the results next year.

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Councilmen Francis Lydian and Fred Hagan look over budget numbers during Tuesday’s city council meeting.

“I want to make sure we do the right thing,” she said. “If we need to do other taxes, then reassess that next year to see what amount is needed.”

Councilman Bobby Simpson said he supported raising the occupational tax to 0.75 and removing the cap. “If we have to use funds from utilities, then we will.”

Councilman Roland Williams said he supported slowing down the decision to raise taxes. He prefers a conservative approach when it comes to raising any tax, he said.

“I like what I’m hearing, so maybe we can take a ‘wait-and-see’ approach,” he said.

That idea resonated with the council, and they agreed to table the discussion.

PROPERTY TAX RATE UNCHANGED. The council held first reading on the ordinance that sets the 2015-16 tax rates for real estate, personal property, and vehicles.

The proposed property tax on real estate is the same as last year — 18.2 cents per $100 of assessed value. The proposed tax on personal property is slightly less, dropping from 19.62 cents to 19.12 cents per $100 value. The motor vehicle tax remains unchanged at 24 cents per $100 value.

The council will give final approval of the tax rate at the next regular council meeting Sept. 8.

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Bardstown Fire Chief Marlin Howard shows a packet of information about the city’s newly hired firefighters at Tuesday’s city council meeting.

CODE ENFORCEMENT BOARD. The council held first reading of a new ordinance that will create a Code Enforcement Board. The new five-member board will handle all code infractions in the the city and will have the power to enforce city ordinances, take remedial action when necessary and impose civil fines.

The Code Enforcement Board’s rulings can be appealed to Nelson District Court.

Currently, the city’s code enforcement officer’s citations are taken to district court when enforcement and civil penalties are required. Royalty said the change will allow citations to be handled in a timely manner. The current process takes a lot of time, he said.

The city will later update its ordinances to reflect the new board will handle enforcement actions for violations of the city’s ordinances.

LOADER TRUCK. The council approved a bid of $41,000 from Capital City Truck Sales in Nashville for a 2005 Sterling truck with a grappling boom. The truck will be used to pick up bulky items, rather than have city employees lift large, heavy discarded items.

In other business, the council:

— approved a tax assessment moratorium request for a building located at 311-313 North Third St. owned by David Thomas and Lisa Woody. The assessment moratorium means that the owners plan to invest in the building’s renovation, and in exchange, the city agrees not to re-assess the property for a period of five years.

— gave final approval of two rezoning requests for homes in the Maple Hill area that had been zoned business and are now residential;

— approved the Bardstown Rotary Club’s use of the City Hall lawn for its annual Kids Day activities on Oct. 1, 2015;

— approved changes to the city’s classification and compensation plan to reflect the new hires and pay grades in the Bardstown Fire Department;

— received a copy of the Human Rights Commission 2014-15 budget.

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