Bardstown City Council gets preview of options for the city’s property tax rate
By JIM BROOKS
Nelson County Gazette / WBRT Radio
Tuesday, Aug. 25, 2020 — The Bardstown City Council heard that the increase in local property assessments and new construction and expansions will have an impact on city residents’ property tax rates.
The council heard city Chief Financial Officer Aaron Boles explain that a substantial jump — nearly $65 million — in property value assessments mean that the city council will have the option to leave the tax rate the same or lower is slightly.
State law limits the tax revenue increase to 4 percent without being subject to recall. With the increase in assessments, leaving the city’s tax rate the same — 17.9 cents per $100 of value — will generate about a 4 percent tax revenue increase, Boles explained.
The city’s other option is to take what is known as the compensating tax rate, which is the tax rate estimated to bring in about the same amount of tax revenue as the previous year’s tax rate. If the council to adopt the compensating rate, it means the property tax rate would drop to 17.3 cents per $100 value of real estate.
Mayor Dick Heaton brought the issue for discussion with a plan for more discussion and action on a tax rate at the upcoming council meetings. Boles said he would have definite numbers for the mayor and council to consider at the September council meetings.
The council took no action or vote related to the tax rate Tuesday.
PREVIOUS TAX RATES. Due to an increase in property values in 2018, the city’s tax rate was lowered from 18.2 to 17.9 cents per $100 value.
Last year the council had the option of raising the tax rate in order to generate a 4 percent tax revenue increase. The council however, voted to leave the property tax rate the same — 17.9 cents per $100 value — as the previous year. The move generated about $70,000 of additional tax revenue — well under a 4 percent revenue increase.
MAINSTREET DONATION. Heaton told the council that the Mainstreet organization is facing a financial crunch since its main fundraising event — the Arts, Crafts & Antique Fair — has been canceled this year.
The event usually brings in $40,000 to help Mainstreet cover its expenses. Heaton said after discussions with Mainstreet director Randi Mouser and NCEDA President Kim Hutson, he wanted the council to approval of a $10,000 community development grant to help Mainstreet cope with its loss of revenue.
Councilman Bill Sheckles told the mayor that he felt the council had no problem with the donation, but he asked that the organization follow the estabished procedure for requesting a community development grant, which includes an application that provides details about the organization’s financial needs.
Other council members agreed that the organization should follow the established procedure to request a donation. Heaton said he would pass the request on to Huston and Mouser.
Boles said at present the community development grant fund has a balance of $15,000. The council has the option of adding funds to that budget line if it choses to.
In other business, the council:
— heard from Heaton that the KY 245 sidewalk project from Mago to the US31E intersection is nearly completion, with crews installing crosswalk signs at intersections between US62 and US31E. Work is already starting on the next part of the project — construction of a sidewalk from US31E to Chambers Boulevard.
— heard from Fire Chief Billy Mattingly that the city’s fire department is moving into the new main fire station on KY245. One fire truck will be based at the Fifth Street fire station, the other apparatus will be housed at the KY245 fire station. Until mattresses arrive, the new main station will be manned 12 hours a day.
— heard from Heaton that the city and county’s mask-up campaign launched last week in an effort to encourage people to wear masks to combat the spread of COVID-19.
NEXT UP. The council’s next regular meeting is 6 p.m. Tuesday, Sept. 8, 2020.
