The possibility of raising the property tax in Campbell County 4% plus the compensating rate was discussed at a public hearing at the County Administrative Building in Newport on Wednesday evening.
Residents showed up to voice their concerns on the matter, most believing that the Fiscal Court did not need to raise its property tax rate to generate revenue because the County had built up a healthy enough reserve to make up the difference it would need to come up with additional funds.
Judge/Executive Steve Pendery explained that the property tax accounts for about 20% of the County’s budget. Last year’s property tax rate was 15.4 cents for every $100 of value, while this year’s rate will be 16.2 cents for every $100 of value. The difference, Pendery said will translate to about $10 more for the average Campbell County household.
Wilder resident Kevin Gordon said that while he applauded the Fiscal Court’s contingency funds in reserves to have money available to pay for the unexpected, he felt that the surplus was large enough not to raise the property tax.
“Every year we have a surplus; I can’t remember the last time the County did not have a surplus. With that being said, even though we throw these contingencies in there, we keep raising the rate and we keep expecting that we’re going to have a deficit, but rather than come in a little bit higher, expenditures come in a little bit lower so we keep winding up with a surplus. To quote somebody a few years ago, there is a time to spend and there is a time to save. I think this is the time to save,” Gordon said.
Judge Pendery explained that some of the money in the budget is earmarked for capital projects like the expansion of the jail which will cost somewhere around $7-8 million. He pointed out that when the county asks for a loan to pay for projects like the jail expansion, the bond rating they get on that loan is greatly improved with healthy reserves in the budget.
“So the moment you go out to borrow another $7 million or whatever the amount happens to be, you want to have reserves sufficient to suggest in respect of bond holders and rating agencies that you have enough money to cover if you had an emergency financial situation and if you do, you get a lower interest rate which translates to an expenditure that in 20 or 30 years is less and can be dramatically less,” Pendery said.
When it came time to vote on the tax rate, Commissioner Charlie Coleman voted against the proposed increase, citing many of the same reasons that Gordon did.
“I would like to keep the rate the same as it is. We have the $10 million reserve fund and if we need it in the fourth quarter or the next fiscal year, I think we can take money out of our reserve fund. The tax payers deserve a break,” Coleman said.
Commissioners Tom Lampe and Brian Painter both voted for the tax rate proposal. Lampe said that the recent heroin crisis that has gripped the region has already increased expenses. Painter said that it was an easy vote for him because the increase would provide money to re-pave County roads that have not been kept up the way they should have been.
“During the recession, we were only getting 8 to 10 miles of roads paved and we need about 19. We started to turn that around. Last year we did 13, this year we’re about 13 miles again,” Painter said.
He then pointed out the lost revenue the county will suffer—as will the other counties in Kentucky—due to the decrease in funds the state’s gas tax generated thanks to low gas prices.
“What that did was put less money in the state road fund, which is basically our money, so we’re going to get $160,000 less because of it. So the additional rate will bring in enough money to replace what the state took out of our road fund,” he said.
The property tax rate was increased after the official vote on the matter.
Other notes:
Northern Kentucky Health Department Director Lynn Sadler presented testimony concerning the 2016 tax rate of the Campbell County Local Board of Health. The Local Board of Health serves to limit the outbreak of disease, provide disaster preparedness, operate health centers, among other services.
The tax rate designated for the Local Board of Health is 2.2 cents for every $100 of valuation which is the same rate as last year. The annual amount generated from this tax amounts to almost $1.5 million.
Because the Local Board of Health is a Special Interest Government Entity, it must come before the Fiscal Court to explain what there tax rates are and what the money is used for. Sadler provided a listing of expenditures her agency spent last year and Commissioner Coleman had questions about some select expenditures.
First, Coleman asked if the Local Board of Health provides referrals, counseling or resources to women seeking an abortion. Sadler said that it was not a federal or state requirement to do so.
Next Coleman sought explanations of why two bars were being funded to provide condoms. Saddler said that the bars were frequented by gay men who are the most at-risk population for the spread of HIV. She said that health centers also provide condoms to those in need.
Other expenditures brought up dealt with seminars that the organization held at Receptions, flowers that were sent to staff members who had family members pass recently, and even veterinarian costs incurred to control and analyze rabies in infected animals.
Saddler explained that much of the funding that pays for these services come from grants and federal money that is designated to pay for the requirements set in place by the federal and state government, which means it is not local tax payers footing the bill for most of the costs.
Some good economic news came when it was said that The David J. Joseph Company, a non-ferrous metal company, has agreed to relocate in Campbell County from Cincinnati. The company estimates putting 38 jobs in the County with a total payroll of $3.3 million. The large metal recycling plant the company owns is not relocating with the other departments. County Administrator Matt Elberfeld personally thanked the Economic Development Officer Seth Cutter for seeing the process through with bringing David J. Joseph to the County.
Written by Bryan Burke, associate editor