City council OKs budget, agrees to look at ways to raise revenues

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Tuesday, June 28, 2016, 11 p.m. — The Bardstown City Council gave final approval of its Fiscal Year 2016-17 budget — but not without some dissent and a frank discussion of the need for raising more revenue.

The city’s utility profits have long helped fund the general fund. The general fund pays for city services that do not create revenue — like street repairs, police and fire protection, recreation and other city services.

COUNCILMAN FRED HAGAN

Councilman Fred Hagan warned the recent rapid growth of the city — including a larger police and fire department, plus the coming planned utility infrastructure projects — mean the council needs to look at how to increase revenues to fund the general fund.

The city’s general fund has been increasingly dependent on spending the combined utility reserves — which are the profits the utilities make. That revenue is not unlimited, Hagan warned, and at the end of the 2016-17 budget, the unrestricted utility reserves will continue to drop — at a time when the utilities could use the money for their own major projects.

The city sewer department has $3.9 million in needed capital expenditures over the next three years, he explained.

“I encourage all of us to understand how we’re going to fund that, because at the end of this fiscal year we will barely have enough in our reserves to fund the next year, much less the year after that,” he said. “If you just look at the numbers, we have to have more income or spend less on our infrastructure.”

Councilman Bill Buckman said he was in favor of raising the occupational tax — a move he supported last year when the same topic was discussed. At that time the council did not change the tax rate, but removed the $100,000 cap.

Buckman said he had received a lot of negative feedback about the city creating an insurance tax. “I think the occupational tax is the fairest way to go,” he said.

Councilwoman Kecia Copeland said the council owes it to their constituents to take action on this matter to make a fair and just decision.

Public Works Director Larry Hamilton, left, and Councilman Bobby Simpson talk prior to the start of Tuesday’s council meeting.

“We made a decision last year to do something and it obviously wasn’t enough and won’t be enough,” she said. “We need to look at options for other revenue. We said we were going to do it last year, and we need to be man enough to do it now.”

Public Works Director Larry Hamilton said the city’s utilities have allowed Bardstown to keep its taxes low and avoid creating new taxes, like an insurance tax or a utility franchise fee.

After additional discussion, City Attorney Tim Butler suggested the council refer the matter to its finance committee.

Copeland asked the council to consider moving its meeting to a larger venue when a issue like the occupational tax is up for discussion.

“We know the hallway is going to be backed, and it will be wall-to-wall in here,” she said of the council chambers, which have a 40-person limit. “When we do have these discussions, lets include the community and let them hear these discussions first hand.”

The council’s finance committee will meet at 5 p.m. Thursday, July 7, 2016.

BUDGET APPROVED IN 4-2 VOTE. Following the discussion on increasing city revenue, taxes, and the spending of utility reserves to balance the budget, the council approved the Fiscal Year 2016-17 budget in a 4-2 vote, with Copeland and Councilman Bobby Simpson casting “no” votes.

Simpson said he felt the council this year didn’t give the budget a close enough examination in order to find ways to reduce spending.  He said he had heard from Bardstown residents questioning some of the items in the 2017 budget.

Simpson said the council discussions may lead the public to think the council had abandoned the city utilities and its projects, but that’s not true.

COUNCILMAN FRANCIS LYDIAN

“We spent a lot of money on water, sewer and electric,” he said. “There’s a lot of things we need — or we think we need — in the budget. You’re right Fred — if we keep spending, we’re going to have to have more money.”

Copeland said after the meeting that after she gave the budget more thought, she had reservations about the budget and what it may mean for for a future council — and mayor.

“Are we setting them up? Are we putting them in a good position?” she said.

She also expressed frustration over the budget process and the lack of time the council has as a group to discuss the budget. The mayor encouraged the council members to meet with their committees and to make their adjustments at the committee level — a process that Copeland said fails to give the council an overall view of the budget.

“When you think about it, we only know what’s going on in the committee meetings,” she said. “We need more time to talk with one another, that’s all I’m saying.”

DRB PROCESS CHANGES. The council approved the first reading of an ordinance designed to streamline the approval process for commercial buildings. All commercial buildings must have their plans reviewed and approved by the joint city-council Design Review Board. The ordinance will allow a three-member panel to approve applications that meet the design review standards for new buildings.

In other business, the council awarded a $94,350 contract for painting at the Jerry Riley Wastewater Treatpment Plant to Mechanical Jobbers of Lithonia, Ga.

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