City OKs tax rate increase; revenue to be same

-A A +A
By Becky Barnes

With very little discussion, the Cynthiana City Commission voted unanimously Tuesday to approve a 17.4 cent tax rate on every $100 of assessed real and personal property for property owners in the city.
Last year’s rate was 17.1 cents on every $100 assessment.
An example of the difference between the 2011 rate and the 2012 rate for city property owners is that if a home in Cynthiana was assessed at $100,000, the property owner paid $171 in 2011 and the owner will pay $174 on the $100,000 2012 assessment.
The city opted for the compensating tax rate, which generates close to the same revenue as it did the previous year.
The 2011 revenue from taxes amounted to $489,247, according to Charleen McIlvain, city clerk. The proposed 2012 tax rate, which requires a second reading, will generate $490,249.
The city has three options when it comes to setting tax rates. It can cut taxes, it can take the compensating rate or set a rate that will generate 4 percent more revenue than the previous year. The increase requires a public hearing.
In 2011, the commission proposed the 4 percent increase, but voted it down following the public hearing.
The commission also set the tangible property tax rate at 19.37 cents/$100. Last year it was 20.10 cents/$100. The motor vehicle ad valorem tax rate was set at 16 cents on every $100 of assessed property.
Each of these received approval on first reading and will require a second reading before being passed.
In other business, the commission:
•Recognized members of the Cynthiana Rod Run committee and applauded their efforts to make the Aug. 25 event a huge success.
•Approved the second reading of an ordinance repealing the 2005 Planning ordinance and adopting the 2012 ordinance.
•Heard Commissioner Billy Grayson report that the new gym floor for City Hall has been delivered and will be installed possibly as early as next week.
•Announced that a recognition and thank-you event will be held Sept. 6 at River Road Park at 6 p.m. for all who worked on the A-Keller Dam repair project.
•Approved a preliminary inter local agreement with the county to establish a Parks and Recreation Department.
Mayor Steve Moses raised issues that were not specifically addressed in the ordinance.
He asked if the Farmers’ Market will fall under the newly established department, who would pay for a commission-required audit, and how funds would be divided should the inter local agreement be dissolved.
Those issues will have to be addressed in the agreement before final approval.
•Announced that three soccer fields should be available for fall at Flat Run Veterans’ Park.
•Announced that Elizabeth  Faulkner has earned certification as a municipal clerk.
•Changed the classification of telecommunicator Jennifer Alcorn from part time to full time.
•Heard Commissioner Roger Slade report that if residents bag leaves the bags will be removed the same day they are placed at the curb. However, those who choose to rake their leaves for the vacuum are asked to keep those at the back of the sidewalk to reduce the chances of those getting into the storm sewer.
•Transferred Eric Hutchison from public works to meter reader.
•Authorized the mayor to sign a letter to the state that will initiate the Main Street Program.