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| Push for city alcohol tax fails for lack of motion |
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4/23/2010
By Tom Marshall
Senior Advocate writer
A bid to levy a 4 percent across the board city alcohol tax died for lack of support Tuesday night.
Mt. Sterling Mayor Gary Williamson invited local officials to Tuesday’s city council meeting to address how funding from the city affects their agencies. Without help from the city many of these agencies would suffer, the mayor said. He urged the council to pass the tax to prevent cutting services. The city has dipped into reserves the past few years to balance the budget.
“We wouldn’t be asking for this if it wasn’t something we needed,” the mayor told council members.
Among those to address the council was city police chief Michael Schnell. He said the police department would suffer dramatically without the tax.
Estimates are that such a tax would generate $300,000 to $400,000 a year to the city.
“Taxes and fees are not the invention of the devil; they are merely the price we pay for essential government services,” Schnell told the council. “These services contribute to the wonderful quality of life we all enjoy in this community. This is the foundation of government, not a liberal or conservative idea.”
Schnell said the department has been pushed to the limit while operating under a hiring freeze that has dropped the roster of officers from an allotment of 24 to the current level of 18.
Without additional revenue the city will have to cut several services, the chief said. Possible reductions include:
• Detectives in the narcotics unit must be reassigned to the uniform division. Narcotics investigations would be closed down and referred to the Kentucky State Police. That would leave Capt. David Charles as the only detective.
• Funeral escorts will no longer be made.
• The department would no longer work non-injury traffic accidents on private property unless a crime is involved such as a collision caused by a drunk driver.
• After three false alarm in one year service would be discontinued until a fine is paid and the system corrected.
• Citizens could no longer have fingerprints made at the MSPD, the only local agency that does so.
• Misdemeanor theft reports would have to made at the police department unless they are in progress.
• Reports of prescription drugs stolen from vehicles will not be taken if there is no sign of forced entry.
“It is critically important to do something now to shore up city finances before a crisis pushes us into financial disaster,” Schnell told the council.
Cay Lane, executive director of the Montgomery County Council for the Arts, said the council could not break even without funding from the city.
Lane said the city council has to keep in mind that the arts council is important to the community because it provides another outlet for local youths and impacts the economy and education. “We’re so poised to take off, but a lot depends on funding,” she told the council.
Cliff Stilz and Sandy Romenesko from the Montgomery County Industrial Authority told the council they too are reliant on assistance from the city to maintain and bring industry to the community.
Council member Allen “Prewitt,” however, said he didn’t like the feeling that the council was being held hostage by threats of loss of service in order to pass an alcohol tax. He said the city needs to do a little belt tightening rather than pass along a new tax.
Liquor store owner Perry Colliver told the council that his business, which took a hit a year ago from a 6 percent state sales tax on liquor, can’t afford to pay another 4 percent. He urged the council to look at alternative revenue sources.
Likewise, Kathy Montgomery from Terry and Kathy’s restaurant and the Mt. Sterling Golf and Country Club, said the businesses can’t pay another tax when they are already cutting jobs and hours amid the nation’s economic downturn.
Williamson entertained a motion to adopt the tax, but no motion was made. Council member Steven Tuttle offered to serve on a committee looking into alternative sources. Williamson agreed and named Tuttle, Prewitt and Schoen McCormick to look into the matter. Other city council business discussed will appear in next week’s issue.
In other action, the council:
• Approved second reading of an amended ordinance related to licensing requirements for transient merchants.
• Approved second reading of an ordinance changing the zoning of a property at the Bypass and Winchester Road to general business. Plans are to build a CVS pharmacy at the location.
• Approved a resolution entering into a contract with the Kentucky Transportation Cabinet as part of the Municipal Road Aid Program.
• Approved the 2009 property tax settlement and authorized the city attorney to file liens on all unpaid taxes. Williamson said collections are about 94 percent.
• Renewed an interlocal agreement between the city and county for 911 services.
• Approved first reading of an ordinance eliminating parking on Brown and Short streets.
Council member Tony Tipton was absent for the meeting.
The council will meet again in regular session 7 p.m. Tuesday, May 18. Meetings are open to the public. For details, see Page A5.
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