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iscal Court plans to vote on a measure that would double the county’s insurance-premium tax to 10 percent — among the state’s highest; only two of the 33 counties with the tax charge that much, although some cities have higher rates.

The new rate is expected to give Oldham about $1.8 million more each year — and cost the average Oldham County resident an estimated $36 more annually, county officials said.

The tax applies to fire, auto and homeowner’s insurance premiums for residences and businesses, as well as the first year of life insurance.

Also tomorrow, Fiscal Court will consider adding 50 cents each month to the fees paid by everyone in the county with a land-line telephone. The fee is now $1.50 for residential phones and $2.90 for commercial phones. The increase would add about $170,000 a year to help pay for upgrades to the county’s emergency dispatch system, such as a new building, instead of using dollars from the general fund.

“This will not do anything except get us to break even,” County Judge-Executive Duane Murner said of the two increases. “Our objective right now is to get a balanced budget.”

But some residents say there are other ways to achieve that goal.

Buckner resident Dewey Wotring said he thinks the county should consider merging its police and sheriff’s departments and consolidate its taxing districts so fewer boards are making decisions on tax rates.

“They just need to manage their crises,” he said of Fiscal Court.

Stuart Crawford of La Grange said the proposed increases have him thinking about moving to Indiana.

Crawford, who owns a business and a home in the area, said that if the insurance premium tax is raised, he would have to pay $800 more each year.

“If this tax passes, it will have a huge impact” on his decision about moving, he said.

Several residents noted that the proposed increases come in the same year that Oldham taxpayers were hit with higher school and ambulance taxes. “It’s getting to where you really can’t afford to live in this county,” said Jeanette Weber, of the Buckner area.

Balancing the budget

Murner, a Republican who was magistrate for eight years before becoming judge-executive in January, made it a goal to balance the budget when he took office.

He and Magistrate Rick Rash said in interviews late last week that they plan to vote for the new tax and fee increases, and Magistrate Bob Deibel said he’s leaning toward supporting the measures.

“We can say cut this or cut that, but to cut everything to balance the budget we might as well, in my opinion, just close the government up,” Deibel said.

Magistrates Bob Leslie and Scott Davis said they plan to oppose them, while David Voegele is leaning toward voting no. Magistrate Steve Greenwell said he’s undecided, and Iva Davis and Steve Church could not be reached.

Murner said he already has laid off 10 county employees this year. The road department eliminated another two positions, and the county renegotiated its Internet contract to save money.

The county is also canceling 20 percent of its cell phones, re-engineering the work flow in several departments and relying more on technology to be more efficient, said chief finance officer Shawn Boyle.

“We’re down to bare bones now,” Murner said. “What are you going to do? Are you going to quit mowing the grass? Are you going to quit policing? We have a whole group of people that would be frantic if we cut back on planning and zoning.”

The problem, Murner said, is that Oldham’s residential growth hasn’t translated into enough revenue to cover county services.

And in six of the past seven years, Oldham has had to dip into its reserves for basic services. This year’s budget predicts $13.9 million in revenue and $16 million in expenses.

Oldham County took in $375,000 more this year in real estate taxes than last year, but that doesn’t cover increases in employee pension and insurance, which total just under $500,000, Murner said.

“The way we got here first was just relentless growth,” he said of the deficit.

The county hasn’t increased its real estate tax — now set at 9 cents for every $100 of assessed value — in the past decade because of a state law that says revenue cannot increase more than 4 percent each year, minus new growth, without being subject to a voter recall.

“Probably 70 to 80 percent of the counties in Kentucky are facing the same issues (as Oldham), and it’s because of retirement issues, health insurance and jails,” said Bob Arnold, the executive director and CEO of the Kentucky Association of Counties, which represents all county elected officials.

Airport angst

In the face of its financial troubles, some residents are questioning why the county is considering construction of a $20 million airport that would handle corporate and private aircraft.

County officials point out that the Federal Aviation Administration would fund the bulk of construction, and consultants estimate an airport could bring in $10 million to the local economy each year.

But “why do you take chances when you don’t have the money?” said Wotring, who made about 7,000 fliers to alert other residents of the proposed tax increases.

Crawford, who owns a hot-air balloon business, said officials also should consider whether they need all 17 county buildings — an idea Murner said he’d like to look into.

Responding to other resident concerns, Murner said that while there are no data showing that merging the police and sheriff’s departments would save the county money, he would support a study of it.

Murner said he doesn’t expect any more tax increases in the next few years, but he acknowledged that the county might consider a fee that would help cover improvements mandated by the Environmental Protection Agency, including maintaining retention ponds in subdivisions.

That storm-water utility charge could be added to the real estate tax bill, Murner said, adding that a committee is studying the issue.

http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20071119/ZONE09/711190404/1008/NEWS01

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