Story - The Meade County Messenger


Vol. 115, No. 10	March 5, 2008

Muldraugh insurance tax clears first reading; officials seek other revenue ideas

By LARRY SEE JR.
Messenger Staff

With councilmember Ralph Lee casting the lone dissenting vote and member Brenda Carlberg absent, Muldraugh’s insurance tax cleared a first reading.

Under the ordinance, the council will tax life and health insurance premiums at 8.5 percent each, with a $5 minimum.

Lee moved to hold the first reading on a similar ordinance, only adopting the increases on life insurance, but that failed due to the lack of a second.

Councilmember Curtis Keley argued, as he has before, officials should try the matter for a year, and if sufficient funds aren’t generated, rescind it.

“I just don’t think that’s a good idea, myself,” Lee said.

Officials are searching for ways to keep the city police department afloat.

Councilmembers need another reading of the ordinance, which was held at 5:30 p.m. March 4 during another special meeting.

After that, the ordinance is expected to become effective July 1, with the first receipts to arrive in October.

“We’re trying to pin this on health insurance and we’ll not have any of that money until October. We need to have some money now,” Councilmember John Haynes said in the discussion leading to the vote.

“We need to have some ways to raise money to keep the police department,” he said, adding a city impoundment lot was previously suggested.

“I am open for suggestions,” Mayor Danny Joe Tate said. “Everytime I come up with something I end up making somebody mad.”

Councilmember Ron Heschke displayed pictures of recent confiscations by officers, including marijuana and weapons. He stressed the city needed to employ quality officers, a fact Tate agreed with.

Heschke said his major concern was the taking of what he called a semi-automatic rifle, adding it really concerned him this was on city streets.

Lee said he had two or three identical guns and blamed the media for causing the hype.

Heschke said that was the difference between a lower-paid officer and one earning more money, adding the more expensive officer would be trained as to what to look for.

“All I want to do is add to what Mr. Haynes is saying,” Heschke said.

Haynes said the city didn’t have many revenue ideas other than the impoundment lot, and there were few corners where the city could cut.

“We’re not behind on the budget,” Tate stressed. “We’re just about out of money for the department. We’ve got money, but if we hire a new officer we will need a to find a place to get the money to pay him.”

Tate had not located any grants to pay for salaries, adding under an earlier federal program, when the grant ended, the city had to agree to keep the officer.

“All of these costs are going up and we are not getting any more money,” Tate said. “We are not able to compete with the cities around us to keep quality officers.”

Officials discussed the possibility of an agreement with the city of West Point in Hardin County to share officers, but Tate reiterated he thought that couldn’t be done.

“We don’t have arrest powers in West Point and (the former police chief) tried that and it wouldn’t work,” Tate said.

He added Muldraugh officers wouldn’t know West Point and vice versa.

“I think it would be beneficial to both departments,” Lee said. “We would have less police for each department but we would still be getting the job done.”

Tate argued Muldraugh businesses pay a lot of taxes and want their businesses protected with local officers.

“A lot more of these people would want to have their police officers up the hill rather than at the bottom of the hill,” Tate said.

Officials will continue with plans for an impoundment lot and directed Tate to continue searching for grant funds.

Tate suggested councilmembers adopt an ordinance to bill insurance companies when out-of-town residents need emergency services.

“Unless they’re a city resident, then the insurance companies need to be billed,” Tate said.

Tate said the rates wouldn’t be cheap, adding that would allow revenue until the insurance tax funds arrive.

“There really is no time to discuss this,” Tate said. “Either you want to do it or you don’t want to do it.

“I think it would benefit the city and it would not be that outrageous,” Councilmember Donnie Basham said. “You can get an ordinance and we can look at it.”

“I am sure Eminice would not be doing it if it were illegal,” Tate said. “But now we have had two meetings and we need to determine what we want to do.”

Members directed Tate to see what similar cities have done and report back at their March council meeting.

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