Berea mayor asks council to consider future funding

Local News

July 18, 2012

Berea mayor asks council to consider future funding

By Ronica Shannon Register News Writer The Richmond Register Wed Jul 18, 2012, 09:17 PM EDT

RICHMOND —

Berea Mayor Steve Connelly called upon the city council Tuesday to take a serious look at “how to fund services for a growing population in a sluggish economy.”

The city’s 2012-2013 budget reveals an “imbalance in fixed and flexible spending,” Connelly said. “If you subtract from available revenues the fixed costs for personnel, debt service and capital projects, the city has only $832,207 on which to operate. Over the next 12 months, I recommend that the council consider the city’s options. What services are essential? What costs can be reduced? What sources of revenue can be added or expanded?”

After a long discussion Tuesday, the council agreed to let the city’s audit and finance committee organize a budget strategic planning session to be conducted in the future.

Connelly gave an historical glance of how the city has been funded in the past.

“Over the last 122 years, Berea’s revenues have evolved into the fairly robust combination of diversified sources,” he said.

The city’s property tax ordinance was enacted in 1893, funding was received from parking meters from 1949 through 1992, sewer and garbage funds were implemented in 1940, a 1-percent occupational license fee was adopted in 1964 and a hotel/motel tax was passed in 1982.

A 2007 tax package included raising real property taxes from 3 cents to 10 cents; implementing a 6-percent insurance premium tax and implementing a 3-percent restaurant tax.

“Now is not too soon to begin considering these issues,” he said.

The city’s alcohol license ordinance, which had its first reading Tuesday, also could be a way to bring revenue to the city.

The council agreed on a $250 license fee for all historic businesses located in the East Berea Precinct.

A local option election was conducted April 3 where 204 voters came to the polls. Out of those voters, 147 people voted in favor of alcohol sales, while 57 voted against sales.

The referendum was conducted in accordance with a state law (KRS 242.1242) that allows drink sales in an establishment on a historic property with a restaurant that seats 50 or more and also provides overnight lodging.

Boone Tavern is the only business in the precinct that meets those criteria.

Alcohol sales at Boone Tavern can’t begin until the Berea College Board of Trustees votes to do so, which has yet to be done, according to Berea City Administrator Randy Stone.

The city’s passage of the ordinance was done so that in case the board votes to do so, they can begin selling alcohol immediately.

In other business:

• The council heard the first reading of an ordinance that, if passed, will annex 158 acres of land at 601 Slate Lick Road into city limits. The land is to be classified as single-family residential and agricultural.

The next meeting of the Berea City Council is scheduled for 6:30 p.m. Aug. 7 at the Berea Police and Municipal Building on Chestnut Street.

Ronica Shannon can be reached at rshannon@

richmondregister.com

or 624-6608.Berea mayor asks council to consider future funding

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