Berea keeps property taxes steady

Andy McDonald
Special to the Register

BEREA November 19, 2008 08:11 am

— With an anxious eye toward a shaky national economy, the Berea City Council took the first step Tuesday night toward keeping ad valorem tax rates at their current level.
The council heard the first reading of an ordinance that would keep the tax rate at 10 cents per $100 of property. Under the current rate, the city will actually lose $9,525 in revenue compared with last year because property assessments have gone down. The city is projected to collect $628,353 in revenue from the property tax.
During a meeting of the Audit and Finance Committee, council members discussed the property tax rate in the context of a souring national economy and the upcoming effort to draft the city’s mid-year budget.
As the council begins to look at amending its budget beginning in December, the city should identify projects that can be delayed cut just in case more jobs are lost in Berea, said City Administrator Randy Stone.
“We don’t want to start doom-and-gloom talk,” Stone said. “But we do want to identify items in our budget that can be delayed. So far, our income has been very steady to date. We’re meeting our obligations.”
This week, city officials learned that Progressive Systems Inc., a welding and robotics firm, will close because of a downturn in the automotive industry. Twenty-two employees will lose their jobs.
Council members Glenn Jennings and Virgil Burnside noted that things could easily get worse if troubles continue for the American automotive industry.
“Brace yourselves for the long term,” Burnside said. “This is not a short-term thing.”
City officials noted that both Tokico and NACCO could be especially vulnerable to layoffs if the recession deepens.
The second reading of the ad valorem tax rate will be heard on Dec. 2.
In other business, the council:
• Adopted an ordinance establishing the Berea By-Pass Overlay District. The overlay district does not impose zone changes, but is intended as a guideline to encourage quality development by establishing standards about issues such as signage, landscaping, buffering, parking, traffic and pedestrian circulation, as well as other criteria.
• Heard from Tommy Lay Jr., who lives in the Beaumont Subdivision. Lay submitted a petition signed by 130 residents in his neighborhood asking the city to install signs or speed bumps to slow the flow of traffic. Lay reported that people race along Ridgewood Road, Weeping Willow Drive and Cottonwood Drive all through the day, presenting a hazard to pedestrians and motorists. “It’s all-day long up until one or two in the morning,” Lay said, noting that he and his grandson had a close call with one motorist who was speeding by Lay’s house. Councilman Chester Powell said he and the city’s Public Works Committee would address the problem at a Dec. 1 meeting. Mayor Steve Connelly, meanwhile, directed the police department to step up patrols in the area. “The police will do the initial check and then we can ask Public Works to look into signage or whatever action is appropriate,” Connelly said.
• Heard a report from City Attorney J.T. Gilbert, who announced that an agreement was reached with NACCO and the payroll firm ADP that the retirement plans of workers in NACCO’s Berea plant should not be taxed. This week, several city officials were contacted by workers from NACCO expressing concern that ADP taxing retirement and 401K plans. Gilbert said that ADP’s software was not set up to exempt employee contributions to retirement plans, but that the ADP agreed to make the adjustment and comply with Berea’s occupational license fee ordinance, which exempts retirement plans. “The city has been well represented in this matter,” Mayor Steve Connelly said about Gilbert.
• The city of Berea was approved for a $1 million Kentucky Industrial Authority grant to complete the new $5 million water-treatment facility. Stone said the loan was contingent upon the city adjusting utility rates.
• Heard a report from Stone about the status of the by-pass. Stone while the project is progressing, there is still no opening date set for the first phase.
• Adopted an ordinance annexing property on O’Possum Kingdom Road with an A-1 agricultural zone designation. The property is owned by H. Gabbard and is located across from the Tremont Subdivision.
• Adopted a resolution committing the city of Berea to an intra-state fire service mutual aid plan. The agreement enables the city to obtain assistance from other municipalities in the event of a fire emergency.
• Police Chief Dwayne Brumley announced that Officer Dale Tillery would be retiring effective Nov. 30 because of health reasons. Meanwhile, Brandon Scalf, who was deployed in the United States armed forces in Iraq, is expected to return to duty in December, Brumley said.