Notes

Outline

CITY OF BARDSTOWN PLANNING FINANCIAL SECURITY FOR OUR COMMUNITY’S FUTURE PUBLIC FORUM JUNE 9, 2003

WHAT HAS CREATED THE CURRENT FINANCIAL PROBLEMS? We built it and they came!!! Strategic plan to create jobs Natural gas utility enhanced opportunities Quality infrastructure Smart growth planning Benefits extend to all county residents

THE NUMBERS

HOW HAS THE CITY PAID FOR GENERAL SERVICES IN THE PAST? Transfers from electric utility

GENERAL FUND FINANCIAL SUMMARY

UTILITY FINANCIAL SUMMARY

WHY DO WE NEED NEW REVENUE? Costs of general services growing faster than utility revenues Long-term investment in utilities Repay debt for expanded plant Maintain plant to protect service quality Deficits in recent years are draining reserves Utilities will continue to fund $2 million overhead costs in the General Fund

WHAT DO WE NEED TO SPEND ON CAPITAL? All departments need capital to maintain services Capital was deleted in last two years to balance both General and Utility budgets Serving new growth will require capital expansion Planning for future capital keeps us competitive

FUTURE CAPITAL NEEDS

COMPETITION FOR ECONOMIC DEVELOPMENT Quality of life US News – 10 Best Small Towns 2002 Site Selection Magazine-#18 of top 100 Small Towns for Corporate sites Writers Alternative Life Style – 50 Best Small Towns in America

COMPETITION FOR ECONOMIC DEVELOPMENT Infrastructure & services Low insurance costs Competitive utility rates Tax credits for industry Stored distilled spirits agreement Bardstown is commerce center of Nelson County

KEEPING THE COMPETITIVE EDGE Maintaining existing services Updating infrastructure Identify capital needs through 2009 Provide resources to fund capital needs

WHAT ARE THE OTHER GUYS DOING? KSCPA report identifies 117 cities with OLF Only 10 less than 1% rate Only 1 city has a cap (Newport uses FICA limit) Washington, Marion, Larue, Shelby & Boyle have both city & county OLF Shepherdsville, Mt Washington, Etown, Lebanon Junction, Harrodsburg all have OLF

WHAT ARE THE OTHER GUYS DOING? 19 cities have utilities AND OLF – such as Bowling Green Frankfort Paris Benton Nicholasville Vanceburg Versailles Glasgow Franklin Madisonville

WHERE DOES THE RESEARCH LEAD? An OLF or other revenue source will be needed in the short term and the long term to remain competitive with other nearby cities for economic development opportunities.

WHY PICK THE OLF? Research conducted for the last two years Insurance premium tax Occupational license fee User fees Other options Cut services Lay off employees Close programs/departments OLF spreads the burden across user groups Revenues will be restricted to General Fund Goal ($750,000) puts General Fund on solid footing

WHAT WILL MY SHARE BUY?

WHAT WILL I PAY?

ARE THERE ANY EXEMPTIONS? The following income is exempt: Dividends, interest, & investment income Pension & retirement income Disability, sick pay, accident benefits & unemployment compensation Death benefits Worker’s compensation Domestic servants

HOW DOES THE CITY COLLECT IT? Employers will deduct from paychecks and send payment to city (just like county fee) Businesses will pay OLF instead of business license fee (just like county fee) Annual return (just like county fee) New business pays $25 to start Existing businesses use the 2002 license City will provide forms & filing instructions

HOW DO I GET MORE INFORMATION? Call city hall – 348-5947 Attend public meetings Watch media forum on PLG 13 Check the web site http://www.cityofbardstown.org