By JIM BROOKS
Nelson County Gazette / WBRT Radio
Wednesday, May 25, 2016, 7 p.m. — A Bardstown City Council member warned that the general fund spending in the city’s 2016-17 budget will dangerously drain the city utility’s reserves.
Councilman Fred Hagan told the council at Tuesday’s council meeting that by the end of the next budget, the city utility reserves will be down to $1.4 million. That balance stands in stark contrast the utility reserves of one year ago ($7 million) and two years ago ($11 million), he said.
For years, the city has depending on transfers from the utility reserves to fund the general fund. The general fund pays for police and fire protection and other city services that do not create revenue. Increases in the fire and police budgets have required greater dependence on utility revenue for a balanced budget.
The utility revenues have helped fund the city’s general fund for years, but as Hagan warned, “That cash cow’s just about been milked dry.”
He suggested the council will have to consider raising revenue when tax rates are considered later this year.
The council received copies of the budget at its working session on May 3, and Hagan asked the council to discuss the budget Tuesday rather than wait until the council’s regular meeting June 14.
In his review of the budget, Hagan offered a handful of suggestions which included:
- adding $7000 to the administration budget for creation of a council training budget.
- removing the request for new groundskeeper position. In the wake of the city’s break with the county on recreation, he suggested waiting a year on the new position until the need to add a groundskeeper was better defined.
- removing the fire department’s request for a pumper truck from the budget. The purchase of the $650,000 truck would leave the city general fund with a $32,000 balance at the end of the fiscal year — a situation Hagan said was “clearly unacceptable.”
- retaining budgeted wage increases for city employees.
The council’s committees have been meeting and discussing their budget requests. The council will likely hold a work session to discuss the budget prior to the council’s June 14 meeting.
TOURIST COMMISSION BUDGET. The Bardstown City Council approved the Bardstown-Nelson County Tourist Commission budget without discussion.
The commissions fiscal year 2017 budget includes $878,500 in revenue, most of which comes from the local restaurant tax ($590,000) and room taxes ($215,000).
On the expenditure side of the ledger, the commission budget includes $615,300 in market and development expenses, which media advertising ($140,000); digital media ($195,000 an increase of $110,000 over last fiscal year); public relations ($50,000); and $35,000 in travel and promotion expenses.
The commission’s total salaries — including payroll taxes and benefits — are $203,700 for 2017.
In other business, the council approved certificate of appropriateness recommendations for the following requests in the city’s historical district:
COA 2016-38. A request to paint the exterior of a home at 107 South Fifth St. and add landscaping.
COA 2016-39. A request to paint the roof of the home at 111 W. Flaget Ave.
COA 2016-40. A request to replace the awnings at 124 North Third St.
COA 2016-41. A request to replace the awnings and signs at Rincon Mexicano, 204 N. Third St.
COX 2016-25. A request to add awnings to the front of the property at 114. North Third St., create a parking area and patio space at the rear.
COA 2016-26. A request to replace windows at a home at 214 N. Fourth St.
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