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From YouTube: Interim Joint Committee on Local Government (7-24-23)
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A
C
D
A
Looks
like
we're
got
a
quorum
and
Dooley
constituted
to
do
business,
but
before
we
get
started
a
few
housekeeping
measures
first,
does
any
of
our
members
have
a
guess,
they'd
like
to
introduce
yeah,
not
seeing
that
we
have
one
other
item:
that's
not
listed
on
the
agenda,
but
we
would.
We
would
like
to
recognize
one
of
the
lrc
staff
that's
been
with
us
for
36
years
and
we're
very
proud
of
that
and
saddened
that
he's
getting
ready
to
retire
but
Joe.
A
If
you
don't
mind
Joe
pesinski,
if
you'll
stand
up,
he
is
he's
just
an
amazing
guy,
he's
I'm
sure
you've
got
a
lot
of
stories.
If
you
think
about.
If
these
walls
could
talk,
we'll
have
to
keep
him
locked
down,
so
he
don't
tell
all
the
secrets,
but
Joe,
it's
been
an
honor
to
serve
with
you.
My
five
years
here
in
the
in
the
house
and
I
I
would
really
like
to
turn
the
floor
over
to
you.
If
you
like
to
say
a
few
words.
E
A
Appreciate
your
years
of
service,
he
is
a
dedicated
employee
and
honestly,
it's
the
lrc
staff
that
holds
this
place
together,
they're
the
glue
and
we
we
get
the
privilege
of
serving
with
them
in
and
out
for
a
few
years
during
our
terms,
but
they're,
the
ones
that
really
put
in
the
hours
co-chair
meals.
Would
you
like
to
say
anything.
D
A
With
that
we
do
have
a
hectic
schedule.
It
is
packed
full
we've
got
I'll,
give
the
speakers
the
minutes
they
have
if
they
want
to
set
a
timer
on
their
phone.
But
first
up
is
the
property
tax
overview
Kentucky
Department
of
Revenue
Melissa
Klink.
If
you
don't
mind
to
come
to
the
table
and
introduce
yourself.
D
F
I
think
Marx
was
gonna,
bring
it
up
and
I
Melissa
Kling
I'm,
director
of
the
division
of
local
support
under
the
office
of
property,
evaluation
and
Department
of
Revenue
and
Tom.
Crawford
would
normally
be
here
to
do
this
presentation,
but
he's
on
vacation
this
week.
So
I
get
the
pleasure
of
coming
and
doing
this
first
off
we'd
like
to
thank
you
all
for
inviting
us
to
provide
you
with
the
information
on
the
overview
of
the
property
tax
Collections
and
how
those
affect
the
local
governments.
F
Perfect,
thank
you
all
right,
as
you
all
are
aware,
where
the
property
tax
calendar
is
mandated
by
statutes,
and
this
is
so
that
we
can
provide
continuity
of
service
to
all
local
governments
and
we
have
divided
the
property
tax
calendar
into
three
sections
so
that
you
can
see
how
the
pvas
clerks
and
sheriffs
play
a
role
in
The
Collection
process.
F
So
this
section
here
is
all
the
pva's
duties.
The
PVA
is
the
primary.
Their
primary
role
is
to
assess
the
property,
all
property
equitably
in
their
County.
A
couple
of
dates,
I
would
like
to
point
out.
Is
they
do
submit
a
first
recap
to
us,
the
Department
of
Revenue
on
the
first
Monday
in
April,
and
this
we
take
this.
We,
we
calculate
all
the
numbers,
and
then
we
provide
them
with
a
approval
letter
saying
that
they
have
met
the
level
of
assessment
for
their
County,
and
at
that
point
they
begin
the
tax
calendar.
F
Then
we
also
receive
the
final
recap
after
they've
had
their
inspection
period
And.
If
they
deal
with
any
appeals,
they
submit
a
final
recap
to
us,
and
this
is
their
total
numbers,
and
this
is
what
we
certify
them
on
and
once
they
are
certified.
We
send
this
information
to
dlg
and
that's
where
the
tax
rate
setting
process
begins.
F
So
this
is
the
tax
calendar
for
the
sheriffs.
These
are
all
the
duties
that
the
sheriff
is
responsible
for.
The
sheriff
is
the
collector
of
the
taxes,
so
they
collect
all
the
taxes
on
personal
property,
real
property
and
everything
and
most
counties
start
collecting
October
1st
some
begin
in
November
either.
One
of
those
is
fine
that
keeps
them
on
the
tax
calendar.
F
If
they
begin
on
October
1st,
then
tax
property
owners
are
allowed
to
pay
at
the
two
percent
discount
until
November
1st
and
that's
by
Statute
I
know
it
seems
a
little
weird
most
most.
The
dates
are
the
first
to
the
30th
or
31st,
but
the
if
they
do
start
on
October
1st.
They
have
until
November
1st
to
pay
it
at
the
discounted
price
and
then
finally,
we
get
to
the
clerk's
duties
and
basically
on
April
15th.
F
All
the
bills
are
turned
over
from
the
sheriff
to
the
clerk
and
from
there
the
clerk
handles
all
of
the
delinquent
bills
and
the
certificates
of
delinquency.
They
have
a
lot
of
Duties
that
fall
in
that
they
have
to
advertise
the
delinquent
tax
bills.
They
have
to
register
third
parties
and
they
also
have
to
conduct
the
tax
sales
and
the
tax
sales
are
held
between
July
14th
and
October,
and
August
28th.
F
F
This
is
the
front
page
of
the
recap,
and
basically
it
summarizes
all
the
assessments
that
they've
done
the
column.
One
is
their
final
numbers
from
their
first
recap.
Column
two
are
any
increases
that
they've
made
since
their
first
recap.
F
Column.
Three
is
any
decreases
that
they've
happened
to
me
during
that
time
and
then
column
four
is
actually
from
any
appeals
that
were
filed.
If
any
appeals
were
filed
by
property
tax
owners,
the
PBA
is
required
to
submit
the
property
owner's
value
that
they're
claiming
on
their
appeal
and
then
once
the
appeal
process
is
finished,
then
they
can
update
that
number.
But
that's
how
they're
required
to
submit
the
information
and
then
on
the
back
page
is
a
record
of
their
Homestead
exemptions,
any
additional
simulations
that
they
have
and
so
forth.
F
So
there's
just
an
example
of
a
you
know.
Bourbon
County
has
Bourbon
County
Schools
as
well
as
Paris
City
Schools.
Then
this
is
a
copy
of
the
certification
that
we
we
calculate
and
send
out,
and
this
goes
to
all
the
local
Oak
local
officials,
the
county
county,
clerks,
the
pdas,
the
sheriffs,
County
attorneys,
judge,
executive.
Everybody
in
the
county
gets
a
copy
of
this
certification
and.
F
I'm
sure
yeah,
then
the
next
sheet
we
send.
This
is
the
actual
sheet
that
we
send
to
local
government,
and
this
also
includes
the
public
service
numbers
that
are
not
initially
included
on
the
county,
because
they
don't
initially
need
that
information,
but
the
local
government
does,
and
so
this
is
the
sheet
that
local
government
receives
and
once
they
receive
this
from
us
and
they
begin
the
tax
rate
setting
process
and
on
the
same
token,
we
send
a
certification
to
the
Department
of
Education.
F
F
Then,
like
I
said,
there's
one
for
just
an
example
of
the
county
and
the
independent
school
certification.
Then
we
get
to
local
Collections,
and
this
is
the
collect
local
collections
for
All
Counties,
all
local
local
governments
that
receive
money
from
property
taxes.
F
G
Thank
you
Mr.
You
have
a
question
about
the
tax
appeals
boards,
yes
ma'am
historically
they've
been
behind
and
while
those
processes
are
going
on,
property
owner
only
pays
taxes
on
their
opinion
of
value
correct.
Can
you
update
the
committee
on
that
backlog
and
maybe
how
long
it
takes
to
complete
the
process?
It.
F
F
F
Now
some
of
your
personal
property
I
don't
know
exactly
how
long,
but
some
of
the
bigger
businesses
can
take
a
while,
because
they'll
actually
take
it
to
the
Circuit
Court
level,
but
as
far
as
property
tax
owners
and
their
real
property
it's
handled
pretty
quickly,
but
I
and
I
can
I
can
get
back
to
you
I
better
answer
once
I
mean
I
talk
to
Tom
about
that
and
get
a
better
answer
on
that,
but
that's
all
I've
got
right
now.
Thank
you.
Sorry.
H
Much
we
had
a
something
come
up
the
other
year
about
doing
aerial
assessments
and
I.
I.
Simply
don't
remember
where
we
left
that
subject
exactly.
F
They
I
think
they
did
say
that
it
was
okay
for
the
pvas
to
utilize
that
aerial
technology
to
find
differences.
If
they,
you
know
a
lot
of
times,
they
can
fly
over
and
they
can.
They
can
late.
There's
there's
a
layover
and
they
can
see
where
additions
to
homes
have
been
made,
and
things
like
that
so
that
they
can.
They
know
they
need
to
go
out
and
physically
see
that
house
and
reassess
it
so
I
believe
that's
where
they
left.
That
was
that
they
could
use
it
for
that
kind
of
information.
Gotcha.
A
Next
up,
we
have
Mr
horde
insurance
program
manager,
Department
of
Insurance.
If
you
will
come
to
the
table
and
introduce
yourself.
E
Thank
you,
Mr
chair,
my
name
is
John.
Hoard
I
am
with
the
Kentucky
Department
of
Insurance.
I
am
the
local
government
premium
tax
program
manager
and
first
I'd
like
to
say
thank
you
for
inviting
me
to
speak
this
morning
and
I
look
forward
to
being
able
to
assist
you
with
anything
that
I
may
now
or
in
the
future.
E
E
The
local
government
premium
tax
may
be
a
pass-through
tax.
It
is
a
tax
on
insurance
companies
or
Surplus
lines
Brokers.
However,
they
may
pass
that
through
to
policyholders
if
they
wish
to
attack
local
government.
Premier
taxes
are
enacted
at
the
local
level,
they're
done
by
local
ordinance.
The
local
jurisdictions
set
the
rate
they
may
if
they
wish,
include
additional
exclusions
to
their
local
government
premium
tax
and
again
that
is
done
by
local
ordinance,
whether
through
the
city
or
county
taxes
are
based
on
fiscal
year.
We
just
started
fiscal
year,
23
24.
E
on
July
1,
all
the
new
or
all
new
local
government,
premium
taxes
or
amended.
Taxes
must
be
submitted
to
the
Department
of
Insurance.
Within
a
hundred
days
of
July
1st
85
days
prior
to
July
1st,
the
department
of
insurance
will
post
all
resources
that
are
required.
That
includes
the
new
tax
Schedule.
We
post
a
bulletin
annually
tax
code,
description
resources,
the
payee
and
addresses
resource
which
will
assist
with
being
able
to
make
sure
that
the
taxes
are
remitted
to
the
appropriate
place.
E
Taxes
are
imposed
on
risk
located
within
a
local
government.
One
of
the
things
we
need
to
ensure
when
looking
at
the
local
government
premium
tax
is
when
they're
determining
which
jurisdiction
should
go
to
whether
that
risk
location
is
within
a
city
limits,
and
if
not,
you
know
up
the
the
correct
County
that
that
risk
location
is
in
a
physical
address
is
required.
When
determining
the
local
government
premium
tax.
You
may
not
use
a
zip
code
if
a
risk
location
may
have
a
mailing
address,
just
to
use
an
example
of
Scott
County.
E
They
may
have
a
Georgetown
mailing
address,
however,
not
be
physically
located
within
the
city
limits
of
Georgetown.
Therefore,
they
would
not
be
subject
to
the
city
of
Georgetown
tax,
so
it's
imperative
that
insurance
companies
and
surplus
lines
Brokers
are
utilizing
what
we
use,
what
we
call
a
verified
risk
location
Vendor
by
Statute.
If
an
insurance
company
has
more
than
2
000
locations
in
the
previous
calendar
year,
they're
required
to
use
one
of
our
vendors.
If
a
insurance
company
has
less
than
that,
they
may
use
an
alternative
method.
E
One
of
those
is
the
Kentucky
Incorporated
cities
map.
That
is
a
a
tool
that
is
Commonwealth
about
this
technology
puts
together
to
it
works
somewhat
like
a
Google
Earth
you
can
put
an
address
in
it
will
tell
you
whether
or
not
it
is
located
within
the
city
limits
or
not,
and
if
not,
then
you
can
look
at
the
the
county
that
the
risk
location
was
in
again.
E
That's
really
one
of
the
most
important
and
imperative
issues
when
dealing
with
local
government
premium
tax
is
ensuring
that
that
location
is
or
is
not
within
a
city
limits.
E
Quarterly
payments
are,
the
taxes
are
done,
are
required
to
be
remitted
within
30
days
of
the
end
of
the
quarter
that
the
premium
was
collected
in
those
local
government
for
new
taxes
are
remitted
directly
to
the
jurisdictions.
So
it's
collected
during
that
calendar
quarter
at
the
end
of
the
quarter,
a
insurance
company
or
Surplus
lines
broker.
Will
then
remit
that,
by
check
to
the
appropriate
jurisdictions,
they'll
have
a
company
cover
letters
that
go
with
it
document
forms
one?
Is
an
LGT
141
form?
E
Basically,
it's
a
demographic
form
to
detail
who
the
insurance
company
was,
who
the
broker
was,
and
it's
a
breakdown
across
different
lines
of
business,
of
how
much
premium
was
collected
and
how
much
local
government
premium
tax
was
collected
in
that
quarter
and
that's
remitted
again
directly
to
the
city
or
the
county.
There
is
an
LGT
142
form
what
that
is
in
situations.
Currently,
there
are
nine
counties
that
have
what
are
determined
to
be
designated
as
tax
code
a
jurisdictions.
E
This
is
the
case
when
a
city
in
a
county
both
have
local
government
premium
tax
and
impose
it
in
this
situation.
The
city
has
a
lower
tax
than
the
county.
So
if
your
risk
location
is
within
a
city
and
for
example,
say
the
city
has
a
five
percent
and
the
county
has
a
10
percent.
The
city
is
going
to
get
five
percent
and
that
five
percent
of
the
city
is
going
to
be
a
credit
towards
the
county,
so
the
county
will
not
get
its
10
percent.
E
It
will
only
get
five
percent
again,
that's
a
tax
code,
age,
jurisdiction
and
that
happens
in
nine
counties
currently
with
certain
cities
within
that
County.
Excuse
me:
we
do
also
have
grandfathered
jurisdictions,
which
are
tax
code
B.
There
are
three
counties
in
four
cities
which
that
currently
and
will
only
be
going
forward.
Those
were
jurisdictions
that
were
prior
to
House,
Bill
524
in
19,
I,
believe
1990..
E
So
in
those
situations
the
city
will
receive
its
entire
local
government
premium
tax
and
the
county
will
receive
its
entire
local
government
premium
tax
at
the
end
of
the
year.
So
again,
the
just
the
department
of
insurance
does
not
participate
in
the
quarterly
collecting
or
remitting
of
the
tax
that
is
done
directly
to
each
jurisdiction.
E
However,
at
the
end
of
each
year,
all
insurance
companies
and
surplus
lines
Brokers
are
required
to
file
a
annual
reconciliation,
LGT
140
form,
and
that
is
basically
a
summation
of
all
local
government
premium
taxes
collected
in
the
previous
calendar
year
and
that
is
reported
to
the
Department
of
Insurance
online
through
e-services.
It
is
due
prior
to
March
31st
every
year
and
a
hard
copy
paper
or
a
paper.
E
That
is
a
basically
a
very
quick
overview
of
the
local
government
premium
tax
and
how
the
Department
of
Insurance
assists
with
navigating
both
the
insurance,
assisting
with
the
insurance
companies
and
also
Surplus
lines
Brokers
and
making
sure
that
it
is
correctly
collected
and
remitted
and
I'm
open
to
any
questions,
or
that
makes
sense
of
it.
Thank
you.
A
Thank
you
very
much.
Thank
you,
Mr,
chair
any
other
with
that.
We
appreciate
it
we'll
before
we
call
the
next
presenter
up.
We
do
need
to
get
a
motion
to
accept
the
minutes
of
the
last
meeting.
A
I
have
a
motion,
and
a
second
with
that
all
in
favor
say
I
those
opposed.
We
get
that
out
of
the
way.
I
know
that
we
have
other
committee
meetings
starting
at
9
30
we'll
have
some
of
the
members
filtering
in
and
out.
So
if
you
see
a
lot
of
movement,
there's
a
lot
going
on
today,
so
just
to
to
give
you
that
update
next
up,
we
have
Sean
orm
the
executive
advisor
for
the
Department.
I
A
J
Good
morning,
thank
you
Chairman's,
Bridges
and
Mills.
My
name
is,
and
members
of
the
committee,
my
name
is
Larry
Klein
I'm,
one
of
the
founding
members
and
past
president
of
Kentucky
occupational
license
Association.
We
originated
in
2001
in
an
effort
to
try
to
create
an
education,
Network
training
Network
for
City
County
and
School
District
tax
administrators
across
the
state
and
our
organization
also
helped
to
create
some
new
legislation
in
0405
and
06.
That
became
law
with
the
we
helped
representative
Carolyn
Belcher,
then
of
Bath
County.
J
That
was
made
occupational
attacks
more
business
friendly.
So
at
the
request
of
the
cola
board
of
directors,
Scott
and
I
are
here
to
speak
with
you
today
about
occupational
license
tax
and
we're
honored
to
do
so,
and
Cole
appreciates
the
opportunity
to
present
this
information
and
inform
the
committee
on
the
members
on
the
scope
and
significance
of
Occupational
texts
to
cities
and
counties
and
school
districts.
J
When
you
start
talking
taxes,
people,
usually
you
know
their
eyes
gloss
over,
but
this
occupational
text
is
the
lifeblood
of
local
governments
in
Kentucky,
I
guarantee
you
far
surpassing
property
tax.
It's
how
we
pay
for
essential
Services
police
fire
ambulance
roads.
J
We
only
have
15
minutes
a
day.
We
can
speak
to
you
for
hours
on
this,
but
you'd
probably
fall
asleep
by
then,
and
so
would
we
so
but
and
understand
that
coal
is
a
small
organization
and
as
such
we
don't
have
all
the
data
that
was
requested,
but
a
lot
of
this
can
be
gleaned
from
the
small,
the
Secretary
of
State
website,
we're
only
going
to
scratch
the
surface
today.
So
what
we're
going
to
give
you
today
is
just
kind
of
a
high
level
overview.
J
Information
provided
by
the
Kentucky
League
of
cities
will
will
tell
you
that
occupational
license
sex
is
the
number
one
Revenue
source
for
kit
for
cities
per
the
Kentucky
Association
of
counties.
It's
a
number
one
license
number
one
Revenue
source
for
counties.
So
basically
the
occupational
license
tax
is
kind
of
an
umbrella
term.
Some
either
a
net
profit
or
gross
receipts.
Tax
is
paid
by
the
business.
The
payroll
tax
is
paid
by
the
employee.
J
J
Each
city
and
county
and
School
District
collects
their
own
occupational
tax,
but
there
are
some
centralized
collection
agencies
in
the
state.
There
are
four
dual
tax
jurisdictions
and
there
are
several
multi-tax
jurisdictions.
You
can
see
I
work
part-time
as
part-time
tax,
compliance
officer
in
the
city
of
Crestview
Hills,
which
is
in
Kent
County
and
Kent.
J
I
did
a
job
for
10
years
before
I,
collecting
taxes,
I
thought,
I'd,
move
on
to
something
easier
being
a
city
manager
but
I
think
attack
reflecting
taxes
was
was
simpler
and
easier,
but
anyway,
so
all
these
jurisdictions
have
over
the
years
mutually
agree
that
it's
in
their
best
interest
to
kind
of
combine
collections
for
for
ease
of
administration
and
where
it
benefits
the
business
Community,
rather
than
getting
multiple
forms
from
multiple
cities
within
the
county.
Let's
do
it
all
in
one
form.
J
So,
as
you
can
see,
this
is
a
brief
slide
on
city
of
cursive
Hill
statistics
we're
a
small
City
3
200
people,
but
that
can
be
a
little
misleading.
We
actually
serve
a
population
at
least
three
to
four
times
that
that
number
we
have
an
office
Park.
We
have
a
university,
we
have
a
Crestview
Hills
Town
Center.
We
have
two
interstate
highways
in
our
city,
I-275
on
I,
believe
I-75.
So
we
have.
J
We
have
a
population
daytime
population
that
we
serve
with
police
fire
and
ambulance
and
Rhodes
that
far
exceeds
that
number
and
and
how
we
pay
for
that
is
with
the
occupational
tax.
As
you
can
see,
we
have
a
small
budget,
4.4
million
dollars,
the
payroll
tax
and
gross
receipts
tax
is
65.
Almost
66
percent
of
our
total
revenue
of
our
city
by
reference
property
tax
is
only
18
percent,
but
of
that
65.82
percent
employees
pay,
54
percent
of
total
budget
revenue
and
businesses
pay
about
11
11
percent.
Our
payroll
tax
rate
is
1.15
percent.
J
With
a
FICA
cap,
once
you
hit
that
you
stop
paying
our
payroll
tax,
our
gross
receipts
tax
on
businesses
is
75
cents
per
thousand,
but
once
you
hit
a
forty
thousand
dollar
tax
liability,
that's
the
cap,
as
I
said
before.
One
of
15
cities
in
the
the
Kent
County
multi-tax
jurisdiction
system
and
we'd
be
doing
that
for
about
25
years
and
all
that
is
by
mutual
agreement,
and
that
system
works
well,
because
it
allows
local
governments
to
maintain
control
of
their
tax
rates
and
and
remain
business
friendly
to
our
businesses.
J
K
K
I've
been
administering
occupational
license
tax
on
behalf
of
local
governments
in
the
Commonwealth
for
15
years,
the
first
eight
years,
I
served
as
manager
of
the
audit
division
at
the
Louisville
Metro
Revenue
Commission.
In
the
past
seven
years,
I've
served
as
the
executive
director
of
The
Georgetown
Scott
County
revenue
Commission.
K
K
The
Scott
County
judge
executive
and
the
superintendent
of
Scott
County
Schools,
the
city
and
county
tax
rates
on
net
profits
and
gross
wages
are
one
percent
per
jurisdiction
and
the
school
board
tax
rate
on
net
profits
and
gross
wages
is
one
half
of
one
percent.
There
are
no
offsets
tax
revenue.
Disbursements
are
issued
by
the
revenue
commission
to
the
three
jurisdictions
twice
monthly.
K
One
of
the
metrics
from
the
audit
that
I
present
to
my
Commissioners
is
the
Georgetown
Scott
County
revenue
commission
return
on
investment
for
the
last
audited
year
that
I
have
stats
on
fiscal
year.
End
6,
30
2022.
Our
total
revenue
collections
for
the
year
were
48.4
million
dollars.
The
revenue
commission's
all
in
expenses
are
825
000.
K
That's
a
98.3
percent
return
on
investment
for
every
one
dollar
in
tax
revenue
collected
1.7
cents
goes
to
the
total
revenue
commission
operations
and
remember,
since
this
is
a
jointly
funded
agency,
the
city
only
pays
40
percent
of
that
the
county
pays
40
percent
of
those
expenses.
The
school
board
pays
20
percent,
which
means
for
every
dollar
collected
the
city's,
paying
slightly
less
than
seven
tenths
of
one
penny.
The
counties
paying
slightly
less
than
seven
tenths
of
one
penny
and
the
school
board
is
paying
slightly
more
than
three
tenths
of
one
penny.
K
The
Georgetown
Scott
County
revenue
commission
has
a
very
lean,
effective
and
efficient
Tax
Administration
operation.
In
the
seven
years
as
an
executive
director,
we
have
collected
312.3
million
dollars
in
occupational
license
tax
revenue
for
the
city,
county
and
School
Board.
That's
the
revenue
impact
of
occupational
license
tax
in
just
one
community
in
the
Commonwealth
312.3
million
dollars.
K
I
won't
go
through
all
these
details,
other
to
show
you
that
each
of
these
collection
years
we've
seen
increases
in
some
years.
The
last
three
years
multi-million
dollar
increases
in
our
collections.
One
anomaly
is
fiscal
year:
2020,
due
to
covid
the
tax
year,
filing
deadline
of
April
15th
was
moved
to
July.
So
those
revenues
which
normally
would
have
occurred
in
the
2020
fiscal
year
did
not
occur
until
the
2021,
so
the
41.2
Million
number
is
artificially
low
and
the
2021
number
is
a
little
artificially
lie
a
little
a
little
high
I'm.
K
Sorry,
although
it
just
ended
24
days
ago,
the
fiscal
year
that
just
ended
June
30th,
we
have
collected
53.5
million
dollars,
that
is
the
largest
single
year
collections
in
the
18
and
a
half
year
history
of
the
revenue
commission,
that
is,
a
5.1
million
dollar
increase
over
the
prior
year,
and
it's
the
first
time
we've
ever
exceeded
50
million
dollars.
So
there's
a
lot
of
growth
in
our
community
as
well.
For
some
perspective.
In
the
last
seven
years
our
average
annual
collections
are
44.61
million
dollars.
K
The
payroll
tax
to
net
profit
ratio-
this
is
adjusted
for
financial
inducement
payments
for
fiscal
year
2022
that
was
8812.,
which
means
88
percent
of
the
occupational
license.
Tax
revenue
collected
was
from
payroll
tax.
That
number
is
42.6
million
dollars.
The
net
profit
tax
was
12
percent,
12
percent
is
5.8
million,
so
the
employees
who
have
this
tax
withheld
from
their
paycheck
are
paying
88
percent
of
the
occupation
license
tax
and
the
businesses
that
operate
in
our
jurisdiction
are
paying
12
percent
I
mentioned
growth.
Earlier.
K
Just
due
to
the
collections,
we've
also
seen
in
fiscal
year,
2022
1099
new
business
accounts
opened
in
Scott
County.
That's
the
largest
number
of
business
accounts
we
have
registered
in
the
18
and
a
half
year
history
of
the
revenue
commission.
Our
prior
five-year
average
is
870.
New
accounts
opened
every
single
year,
which
is
also
a
respectable
number.
L
L
back
then,
people
had
to
go,
make
three
stops
or
mail,
three
envelopes
to
the
courthouse,
the
city
hall
and
the
school
board,
and
that
was
one
of
the
first
bills.
I
got
passed
so
there's
a
lesson
here.
Folks,
even
even
freshman
legislators
can
make
a
difference.
It
can
happen
that
was
interesting
times.
Democrats
controlled
the
house
representative
Reggie
Meeks
lit
my
bill
up
with
a
senate
committee
substitute
that
nearly
tanked
the
bill.
L
L
My
my
bit,
it's
great
to
hear
that
the
collections
are
going
well,
but
I
have
a
really
big
concern,
as
do
a
lot
of
homeowners
in
Scott
County
about
the
huge
increases,
an
assessed
value
by
our
PVA,
which,
unless
the
Fiscal
Court
takes
action,
is
going
to
result
in
a
massive
tax
increase
for
anyone
who
owns
property
in
Scott,
County
I
have
spoken
to
my
good
friend,
the
judge
executive
and
several
members
of
the
Fiscal
Court
and
urge
their
consideration.
L
I
know
that
a
lot
of
the
the
growth
we're
seeing
is
because
of
the
the
population
growth
and
the
number
of
businesses.
The
Scott
County
is
the
fastest
growing
County
in
Kentucky.
Although
I
think
the
senator
from
Bullitt
who's
sitting
right
in
front
of
me,
they
they
may
say
that
they're,
the
fastest
growing
County
but
I,
know
we're
right
there
neck
and
neck
and
I
believe
Georgetown
just
passed
Richmond
and
is
now
the
sixth
largest
city.
Yes,
sir
in
Kentucky,
so
sorry
about
that
representative,
Frazier,
Gordon
everybody's
moving
to
Georgetown.
L
L
And
a
Skyline
Chili
and
a
Dunkin
Donuts,
so
which
apparently
for
those
who
drink
coffee
is
a
big
thing.
So
I
I
wondered
if
you
could
comment
I'm
concerned
that
our
our
fiscal
Court's
going
to
have
more
money
than
they
know
what
to
do
with,
unless
I
can
convince
them
to
cut
taxes.
K
Well,
with
all
due
respect,
Senator
I
I
don't
have
anything
to
do
with
the
property
taxes.
We
just
do
the
occupational
license
tax
and
frankly,
when
I
make
those
disbursements
twice
a
month
what
they
do
with
the
money
after
that
is
also
not
I'm,
not
in
my
Lane
there
and
speaking
to
that.
So
I
really
am
not
in
a
position.
I.
K
L
I'm
all
about
Job
Creations
yeah.
So
yes,
thank
you
so
much
for
the
great
job
that
you
do.
I
know
with
with
the
growth
we're
seeing
and
all
the
new
businesses
coming
in.
It's
it's
put
an
even
bigger
burden
on
you
and
your
team
and
you're
doing
a
great
job
thanks
very
much.
A
M
Thank
you
very
much.
I
actually
have
had
a
question
from
the
city
of
Covington,
which
is
not
in
my
district,
but
it
is
at
the
top
of
the
state
and
and
it's
around
the
issue
with
reliable,
high-speed
internet
telecommuting,
hot
desking
working
from
home
and
a
lot
of
them
aren't
ever
coming
back.
M
Are
there
clear
jurisdictional
boundaries
in
current
statute
that
addresses
who
collects
these
taxes
and
and
that's
both
in-state
and
Interstate,
because
one
of
their
issues
was
Interstate
collection
of
taxes
on
that?
So
are
you
having
jurisdictional
issues,
because
I'm
telecommunity
from
home
and
I
might
never
come
into
the
office
or
I
might
come
in
once
a
week
or
twice
a
week
in
hot
desk
without
other
employees?.
D
K
In
general
last
year,
legislation
was
passed
so
that
we
could
share
information
on
these
employee
refunds
where,
because
what
happens
is
with
covid,
the
employers
kept
withholding
as
if
they
were
still
in
your
jurisdiction,
because
nobody
knew
where
this
was
going
and
then
they
file
a
refund
with
us
and
I'm.
The
person
that
processes
these
refunds
in
Georgetown
so
I
see
all
of
them.
K
If
they
choose
to
now
that
we're
past
coveted,
it
appears
that
what's
happening
is
it's
it's
kind
of
cemented
in
in
a
lot
of
cases,
so
some
companies
are
offering
people
to
you
to
work
two
or
three
days
a
week
from
home
as
far
as
occupational
license.
So
so,
and
let
me
go
a
little
bit
further
with
that.
So
that
means
that
the
employers
should
be
withholding
properly
if
they
know
that
they're
going
to
be.
You
know
they
should
be
two
days
in
Covington
three
days
in
Boone,
County
or
wherever
they
live.
K
Are
there
clear
jurisdictional
lines?
Yes,
an
occupational
license
license
tax
has
always
been
based
on
where
the
work
is
performed.
So
if
a
company
in
your
jurisdiction
sends
everybody
home
and
home
is
not
in
your
jurisdiction,
you've
got
a
problem
now.
I
can
tell
you
I
analyze
this
for
my
Commissioners
in
Georgetown,
and
there
was.
There
was
an
impact
we
we
did
have
some
people,
because
the
growth
that
Senator
Thayer
talks
about
60
of
the
growth
that
we
have
enjoyed.
K
There
is
people
moving
there,
but
60
of
them
aren't
working
there,
they're
working
in
Lexington
or
Frankfurt
or
someplace
else,
so
we
weren't
getting
the
occupational
license
tax
on
that.
But
now
maybe
those
tables
have
turned
this
year
will
be
very
interesting
when
I
look
at
the
2023
fiscal
year
and
give
it
to
the
Commissioners
what
I'm
telling
what
I
told
them
last
year
was.
There
was
an
impact.
It
was
under
200
000
between
the
city
and
the
county
of
people
working
outside
of
the
community
I
I
suspected
all
along.
K
It
would
not
be
as
much
of
an
issue
for
us
in
Georgetown,
because
you
cannot
build
a
Toyota
Camry
in
your
dining
room
in
Nicholasville.
You
have
to
come
to
Georgetown,
so
we've
got
that
going
for
us,
but
that
doesn't
mean
some
of
the
engineers.
You
know
the
North
American
engineering
headquarters
is
also
in
Toyota
and
Georgetown.
They
travel
a
lot
and
now
a
lot
of
them
are
working
from
home
as
well.
K
A
H
H
All
right,
I'll
be
very,
very
brief.
Then
Mr
chairman
I
have
one
quick.
Actually
it's
praise
to
to
you,
because
I
think
it's
been
a
tremendously
helpful
agenda
today,
A
lot
of
times
we
deal
with
the
theoreticals
of
government
in
Frankfurt
and
not
a
lot
of
the
wrench
turning
and
the
the
machinations
that
actually
make
it
happen,
and
so
this
has
been
really
enlightening.
I
think
on
all
the
levels
I
wish.
H
The
folks
from
DOI
and
dor
were
here
to
kind
of
take
the
compliment
as
well,
but
thank
you
for
a
good
agenda
today.
It
was
first
second
welcome
to
Larry
Klein
who's,
who
was
a
masterful
city
manager
in
Covington,
through
some
significant
ups
and
downs
that
that
City
saw
and
and
wrote
them
through
all
of
them.
H
So
I
just
wanted
to
to
say
that
welcome
to
Larry
as
well
and
then
by
way
of
question,
if
we
do
have
jurisdictions
who
are
raising
concerns
about
occupational
licenses
and
Collections
and
stuff,
it
is,
is
potentially
looking
at
a
state
level,
centralized
collection,
a
better
model
in
the
21st
century,.
K
For
the
same
reason,
you
would
not
think
it
was
a
good
idea
for
the
IRS
to
come
in
and
take
over
a
collection
of
state
taxes,
because
you
know
best
at
the
state
level
how
to
collect
your
funds.
You
know
how
to
disperse
it,
that's
basically
our
Approach
at
Cola
too.
It's
it's
the
same
way
at
the
local
level.
Larry
mentioned.
D
K
Of
the
collaborative
relationships
we
have
we're
able
to
expedite
things
for
businesses
many
times,
because
we
have
relationships
with
Planning
and
Zoning
Chamber
of
Commerce
the
building
and
codes
permits.
We
all
work
together
in
community
with
a
lot
of
Partnerships.
A
lot
of
that
is
lost,
I
can
see
where
there
would
be
some
efficiencies,
but
we
would
lose
local
control.
We
would
lose
control
and
have
concerns
about
cash
flow
and
things
of
that
nature.
K
So,
unless
Larry
wants
to
add
anything
to
it,
I
think
our
position
pretty
firmly
would
be
no
as
far
as
doing
that
at
the
Statewide
level.
Right,
because
at
the
local
level
we
know
best,
just
as
you
know
best
at
the
state
level.
How
to
do
that
and
an
outside
entity
should
not
be
the
one
collecting
that.
J
Scott
Scott
today
is
some
great
reasons,
and
we
could
give
you
reasons
all
day
long,
but
over
the
years
we've
heard
this
argument
many
times,
but
I
think
the
most
the
the
most
the
best
argument,
I've
ever
heard,
is
if
I'm,
a
small
local
business
owner
in
Crestview,
Hills
and
I
have
a
problem
with
my
occupational
tax.
Do
I
want
to
call
the
city
or
county?
J
Do
I
want
to
call
Frankfort
I
want
to
deal
with
the
people
whose
faces
and
names
I
know
and
our
small
businesses
are
the
backbone
of
our
our
state
and
National
economy.
So
I
think
that
local,
you
know
dealing
with
local
people
who
know
you
who
know
your
business
that
that's
critically
important,
maintaining
it
rather
than
calling
some
1-800
number
in
Frankfurt
or
whoever
and
talking
to
someone
that
you
don't
know
and
doesn't
know
you
or
your
business
or
how
important
your
business
is
to
that
Community.
I
Thank
you,
chair
and
I'll.
Be
brief
as
well.
I'm.
Sorry
I
can't
see
you
both,
but
thank
you
for
your
presentation.
Lexington's
grateful
for
the
sharing
of
information.
It
makes
a
big
difference,
giving
the
regional
Hub
and
how
much
people
come
into
you
know.
Over
52
of
our
Workforce
comes
in
every
day
to
Fayette,
County
and
out,
and
so
more
people
are
doing
remote
working
I
was
just
curious.
I
I
was
at
a
seminar
recently
talking
about
remote
working
and
occupational
Tech,
specifically
New
York's
legislation
that
is
required
that
if
they're
headquartered
in
New
York
and
you
spend
one
hour
a
year,
the
entire
remittance
of
that
year
goes
to
New,
York
and
so
I
was
just
curious.
If
Co
was
following
National
policies
and
state
Trends
on
those
issues.
K
No,
we
we
follow
whatever
the
existing
law
is
KRS
and
then
our
local
ordinances.
So
if,
if
somebody,
for
example,
I
mentioned
the
Toyota
engineer,
so
if
they're
working
they're
based
in
Georgetown,
but
they
may
go
to
Canada,
they
may
go
to
Mexico
the
company.
If
it's,
if
it's
it's
a
one-off
they're,
never
going
to
keep
up
with
that.
K
If
it's
they're
working
from
home
two
or
three
days
a
week,
that's
a
different
story,
so
the
company
will
typically
withhold
based
on
as
they
spent
all
their
time
in
Georgetown
when
they
get
their
W-2
and
they're
doing
their
federal
and
state
income
tax
returns.
They
also
send
a
return
to
me
and
that
time
that
they're
outside
of
the
jurisdiction
we
give
them
a
refund.
K
But
if,
if
where
they're
working
in
Canada
we're
I'm
not
going
to
send
anything
to
Canada
or
Mexico
I,
don't
know
what
their
or
even
other
states,
but
my
my
fellow
Partners
in
the
Commonwealth,
yes
I'll,
send
it
to
those
cities
and
those
counties,
and
they
can
do
with
that
data.
Whatever
they
choose.
Okay,.
K
I
Guess
my
greater
point
is:
other
Estates
are
taking
policy
efforts
that
impacts
us.
If
my,
if
there's
someone
who
lives
in
Lexington
who
works
for
a
new
york-based
company
and
they're
in
sales
or
marketing
or
whatever
else,
and
they
are
right
now
paying
Lexington
fees
and
occupational
attacks,
but
go
to
New
York
once
in
that
year
that
whole
Year's
remittance
is
going
to
be
to
New
York.
That
does
have
an
impact.
D
I
A
Point.
Thank
you.
We
appreciate
your
presentation.
We
are
a
little
behind
schedule,
I'm
going
to
ask
for
our
next
presenters
to
come
up.
I'm
gonna,
both
Keiko
and
KLC,
are
going
to
testifying
this
hour
and
then
in
the
next,
so
I'm
going
to
reverse
orders
on
the
next
one,
but
first
Jim
Henderson
with
Keiko.
If
you
could
come
forward
and
thank
you
thank.
K
N
Absolutely
straight
yeah
got
to
stay
ready
here
in
this
community
move
the
agenda.
So
that's
great.
Let
me
get
the
slide
up
here.
N
N
Well,
good
morning,
good
morning,
chairman
Bridges
lieutenant
governor.
Excuse
me
chairman
Mills.
Congratulations,
that's
a
high
honor
for
anybody
to
be
considered
as
a
lieutenant
governor
candidate.
So
congratulations,
I
know.
You've
had
a
busy
last
few
days,
so
Senator
Elkins
it's
great
to
have
a
member
of
this
committee
that
it's
a
former
Fiscal
Court
member
and
understands
County
government
very
well.
So
it's
great
to
have
you
here,
thanks
for
having
us
me
here
today,
us
we're
kind
of
spread
around
there's
several
committees
today,
as
you
earlier
mentioned.
N
Oh,
we
appreciate
the
opportunity
to
tell
the
county
story.
Whenever
we
get
the
chance
chairman
Bridges,
you
asked
me
to
focus
on
County
government
revenues
and
the
major
expenditures
of
County
government.
My
colleague
Todd
Ruckel,
the
head
of
the
judges,
Association
and
judge
Matt
Wireman,
are
going
to
talk
a
little
bit
more
about
the
county
budgeting
process.
Earlier
the
testimony
from
Cola
Department
of
Insurance
Theo
a
deal
dor
all
covered
a
lot
of
the
topics
that
effect
both
counties
and
cities.
I'll
try
to
point
out
a
little
bit
of
the
differences
with
respect
to
revenue.
N
Excuse
me
revenue
and
expenditures.
I
do
think
sometimes
people
assume
both
the
counties
and
cities
have
all
the
same
of
both
and
we
do
have
some
differences.
That
that'll
be
obvious
here,
probably
after
mine
and
JD's.
Testimony
I
do
want
to
focus
on
Statewide
numbers.
Mostly
I
will
drill
down
some
onto
County
specific
numbers
where
it
makes
sense,
but
let's
first
there
we
go
talk
about
the
total
County
revenues
again
Statewide.
N
So
most
of
my
data
here
is
pulled
from
the
fourth
quarter,
financials
that
are
reported
to
the
department
for
local
government
by
counties,
so
the
most
recent
ones
are
not
all
in
yet
and
easy
to
access
from
fiscal
year
23.,
so
everything
I've
got
is
from
fiscal
year.
22
and
again,
I,
usually
apologize
and
qualify
this
every
time
and
I
just
almost
have
to,
but
most
of
our
information
excludes
Jefferson
and
Fayette,
because
the
numbers
are
so
big
and
the
entities
are
so
different
that
it
would
really
skew
the
totals
too.
N
So
again,
these
numbers
exclude
Jefferson
and
Fayette
in
terms
of
the
the
totals
so
across
Kentucky
and
fiscal
year
22
year
ending
there
were
2.2
billion
dollars
in
County
revenues
reported
across
118
counties.
That's
a
pretty
big
number
right
honestly
in
preparing
for
this
testimony
that
that
kind
of
hit
me
like
wow,
that's
a
big
number,
and
so
I
should
say
that
in
this
particular
fiscal
year,
as
you
all
know,
there
was
a
lot
of
federal
dollars
that
came
into
counties
so
about
328
million
of
that
2.2
billion
is
the
second
round
of
arpa
funding.
N
So
again
that
skews
it
just
a
little
bit,
but
you
you
want
to
notice
on
this
particular
slide
here.
I
think
something
interesting
is
that
when
you
look
at
the
source
of
revenues
for
counties,
we're
very
dependent
up
on
state
and
federal
dollars
for
the
operations
and
I
think
that
has
a
lot
to
do
with
the
distinction
of
counties
being
constitutional
creatures,
political
subdivisions
of
the
state
and
and
having
State
mandated
functions
as
a
part
of
what
we
do
at
the
county
level,
so
we're
very,
very
reliant
on
that
relationship
with
the
state.
N
But
the
federal
dollars,
even
that
counties
get
are
most
often
still
filtered
through
the
state,
somewhat
State
controlled,
but
again
in
terms
of
source
of
Revenue
again
a
little
over
50,
56
percent
of
that
is
from
or
excuse
me,
44
state
and
federal
56
percent
of
that
County.
Let
me
click
there.
N
Okay,
and-
and
so
you
heard
the
earlier
conversation
about
the
the
three
big
taxes
and
those
are
the
three
significant
tax
sources
for
counties,
and
so
88
percent
of
all
County
tax
revenues
generated
come
from
these
big
three.
Now
there
are
a
number
of
counties
that
don't
have
all
have
all
three.
Some
don't
have
two
of
the
three
everybody
of
course
has
property
tax
and
so
I'll
point
out
some
of
those
distinctions
here
just
in
a
second,
but
going
into
that
I
think
it's
important
to
see.
N
Which
counties
do
have
these
particular
taxes.
There
are
84
counties
that
have
occupational
license
fee
or
payroll
taxes.
The
cola
folks
were
talking.
N
You
can
just
see
those
counties
there
and
then
47
counties
that
have
an
insurance
premium
tax
and,
as
the
gentleman
mentioned
earlier
in
most
of
those
counties
all
but
nine
and
I
know
there's
another
task
force
about
annexation
in
City,
County
revenue
issues,
but
it's
I'd
be
remiss
if
I
didn't
mention
that
in
in
the
insurance
premium
tax
jurisdiction,
specifically
again,
as
the
gentleman
mentioned
earlier
in
all,
but
nine,
primarily
the
insurance
premium,
taxes
that
the
County's
Levy
can't
be
collected
in
the
city,
the
way
that
the
the
law
is
today
because
of
the
offsets
and
again,
as
you
all
know,
from
previous
testimony
in
counties
over
30
000,
except
for
the
few
examples
like
Scott,
County
and
Georgetown
that
was
mentioned
earlier,
there's
also
a
credit
or
offset
in
those
counties
on
occupational
tax
so
again
on
County
tax
revenue.
N
Again,
you
can
see
on
this
slide
here
now.
This
is
just
in
the
in
the
tax
revenue
portion,
88
of
all
tax
revenue
at
the
county
level
comes
from
payroll
property
or
insurance
premium
tax
and
here's
the
breakdown
of
the
three
Statewide
representative,
Meredith
I,
know.
We've
looked
at
some
of
these
numbers
over
and
over
over
the
past
few
years,
in
the
conversation
about
other
ways
that
maybe
counties
and
cities
could
tax
with
a
change
in
the
Constitution.
N
But
the
payroll
tax,
as
was
earlier
said,
does
represent
the
largest
portion
of
tax
revenue
collected
at
the
county
level,
44
percent,
nearly
373
million
dollars,
property
tax
revenue
just
behind
it
at
34
percent
of
all
the
taxes
collected
at
the
county
level,
290
million
and
then
insurance
premium
tax,
just
under
10
percent,
at
nearly
80
million
dollars.
N
And
as
I
said
you
know,
if
you
look
at
these
numbers
Statewide,
you
would
assume
this
is
kind
of
similar
in
every
County,
but
with
counties
that
don't
have
some
of
these
or
you
have
some
outlier
counties.
You
should
know
that
some
of
these
are
way
more
significant
within
that
county,
for
example,
on
the
low
side
in
payroll
tax,
Davis
County
only
has
about
10.6
percent
of
their
total
revenues
that
come
from
payroll
tax
in
large
part.
N
That's
because
of
their
offset
issue
being
over
thirty
thousand
same
thing,
with
Warren
County
13
and
a
half
percent
of
their
total
revenues
come
from
payroll
tax,
flip
side,
Hancock,
County,
Central
Mills,
not
too
far
away
there,
a
small
County
on
the
river
big
employer
there,
87
percent
of
its
County
tax
revenues,
come
from
occupational
tax,
primarily
from
a
large
employer
there
and
much
the
same
in
Carroll
County,
with
82
percent
of
their
budget
dependent
upon
occupational
tax.
N
So
huge
swings
on
the
dependency
property
tax
same
thing,
almost
a
flip,
if
you
would
assume
Carroll
County
3.9
percent
of
its
total
taxes
come
from
property
taxes.
So
again,
it's
obviously
because
they
have
such
a
high
Reliance
on
payroll
tax
and
again
Hancock
County
is
the
the
low
on
that
at
5.2
percent
on
the
high
Hardin
County,
70.8
percent
of
its
entire
taxes
comes
from
property
tax.
They
don't
have
a
payroll
tax
or
an
insurance
premium
tax.
Neither
does
Christian
County
with
68
percent
of
its
total
budget
coming
from
property
tax.
N
So
again
you
see
these
big
swings.
So
when
you
see
these
Statewide
numbers,
you
talk
about
the
percent
of
the
budget
for
counties.
It's
really
important
to
know
that
in
particular
counties
it's
a
huge
number,
both
ways-
I
just
wouldn't-
want
that
to
get
lost
on
the
other
taxes
you
know
the
12
or
so
that's
levied
from
other
sources.
That's
about
100
million
dollars,
Statewide
some
examples
of
that.
That
might
be
things
that
you
all
would
know.
N
9-1-1,
surcharge
fees,
911
taxes
that
are
levied
on
the
landlines,
the
landline
telephones,
still
a
significant
number
Statewide
22
and
a
half
million
dollars.
That's
a
restricted
fund,
as
you
all
would
assume
that
can
only
be
used
for
that.
That's
the
the
portion
that's
collected
at
the
county
level
that
does
not
include
what's
collected
at
the
state
on
cell
phones,
that
goes
into
the
CR
cmrs
board
and
then
is
redistributed
out
to
the
911
centers
real
estate
transfer
tax
is
another
one
of
those
other
taxes
that
exist
at
the
county
level.
N
Chairman
Bridges
and
Realtors
around
the
the
room
understand
that
tax,
it's
about
20.8
million
dollars,
Statewide
the
Bank
franchise
tax,
is
another
significant
one.
There's
been
conversation
about
that
in
recent
years,
and
just
so
you
know
that's
a
a
pretty
significant
tax
revenue
for
County
7,
19.6
million
the
hotel
motel
tax.
You
hear
people
in
that
industry.
Talk
about
that
tax.
You
know
not
being
a
tax
on
people
locally.
N
A
I'm,
sorry,
I'm,
sorry,
I'm,
sorry,
I
thought
I
was
I,
thought
I
was
hitting
there
and
when
we
start
up
with
questions,
I'll
ask
JD
to
come
up
while
we're
taking
questions
to
Jim
good.
N
So
let's
do
slide
seven
real,
quick,
so
there's
where
we
spend
our
money
at
the
county
level.
That's
that's
easy.
You
can
see
it
all
there
on
one
slide:
largest
expenditures
and
County
budgets,
not
surprisingly
jails
and
roads.
Those
are
the
two
largest
budget
items
within
any
County
budget.
As
a
rule,
total
jail,
hey
Jim,.
A
I,
don't
believe
we
do
we'll
we'll.
Have
you
back
up
perfect
and
JD
Cheney
with
KLC,
welcome
to
the
table
and.
O
Mr
chairman
I'll
introduce
myself
JD
Cheney
I'm,
the
executive
director
CEO
of
the
of
the
league
of
cities,
looks
like
maybe
we
lost
some
font
issues
there
mark
with
the
with
the
PowerPoint,
but
that's
okay,
the
bulk
of
my
time
when
it
comes
to
revenues,
I
believe
the
committee
requested
that
we
spend
most
of
our
time
talking
about
everything
else,
besides
property
insurance
premium
and
occupational
taxes,
but
just
to
highlight
for
Kentucky
City's
overall
Statewide
those
three
types
of
taxes
that
were
presented
on
by
the
by
the
Department
of
Revenue
Department
of
Insurance
and
cola.
O
That
is
the
primary
method
by
which
city
governments
are
funded.
From
a
general
fund
perspective
from
a
city
perspective,
59
percent
of
general
fund
tax
revenues
come
from
occupational
taxes
based
on
their
uniform
financial
reporting,
information,
25
of
Municipal
revenues
based
on
the
property
tax
and
14,
based
on
the
insurance
premium
tax.
Other
two
types
of
taxes
that
can
be
levied
account
for
two
percent
they're
tourism
related
Insurance,
not
Insurance,
Transit,
room
tax,
hotel,
motel
tax
and
and
the
restaurant
tax
in
a
select
number
of
cities.
O
Otherwise
everything
else
is
a
user
fee
or
a
general
or
a
generally
dedicated
fund.
So
those
are
the
three
most
common
common
Revenue
options
to
fund
General
General
government
there
are,
there
are
a
number
of
other
fees
and
that's
what
I'm
I
want
to
talk
about
here.
Several
cities
collect
alcohol
beverage,
a
regulatory
fee,
that's
available
in
certain
cities
and
certain
certain
counties:
hotel
tax,
the
restaurant
tax,
which
is
only
available
in
a
in
a
limited
number
of
jurisdictions
that
were
previously
classified
as
fourth
and
fifth
class
cities.
O
Of
course,
we
did
a
decade
ago
did
away
with
our
classifications,
so
certain
cities
can
do
that.
That's
subject
to
litigation.
Right
now,
in
Franklin,
in
Franklin,
Circuit
Court,
we
had
a
County
government
and
a
city
government
decide
if,
if
they
couldn't
have
it,
nobody
could
have
it.
So
it
looks
like
we're
going
to
challenge
the
whole
constitutionality
in
circuit
court
on
the
restaurant
tax
and
franchise
user
fees
are
the
other
other
common
we've
said
this
a
million
times.
Some
of
you
are
new
to
the
committee.
O
Our
Constitution
limits.
The
types
of
revenues
that
local
governments
can
collect.
Cities
can
collect
section
181
of
the
Kentucky
Constitution
only
is
is
not
just
a
restriction
on
City
governments,
but
is
a
restriction
on
this
legislature.
It
restricts
what
the
legislature
can
authorize
cities
to
do.
We
usually
beat
the
table
of
home
rule,
let
local
control
local
control
when
it
comes
to
tax
setting.
O
That
is
clearly
within
the
purview
of
the
general
assembly,
even
at
the
local
level,
the
general
assembly.
We
do
not
have
home
rule
when
it
comes
to
local.
When
it
comes
to
local
taxation,
the
general
assembly
can
only
authorize
cities
to
collect
occupational
taxes,
insurance
premium
taxes,
a
type
of
Occupational
tax,
the
net
profits
gross
receipts
and
the
payroll
tax
occupational
taxes
that
was
talked
about
have
alarm
taxes
on
real
and
personal
property
and
franchise
fees.
O
If
you
look
at
the
collections,
2.2
2
billion
and
some
and
some
change-
43
million
the
top
three
taxes
account
for
that
for
General
general
fund.
O
When
you
look
across
this
in
fiscal
year,
2021
we're
using
fiscal
year
2021
data
because
I
we
have
certainty
that
that's
the
most
complete
with
with
regard
to
to
the
revenue
options,
as
we
mentioned
before,
cities
can
also
collect
bank
deposit
franchise
fees,
like
the
counties
mentioned,
the
alcoholic
beverage
licenses
and
Regulatory
fees,
Hotel
Transit
room
tax,
dedicated,
though
that
is
dedicated
to
funding
tourism
within
the
jurisdiction,
restaurant
tax
and
then
the
franchise
fees
which
is,
which
is
for
the
privilege
of
using
the
rights
of
way
within
a
municipal
government,
whether
that's
electric
utilities,
Natural
Gas,
Utilities,
water,
Wastewater
and
others.
O
Those
bring
in
relatively
less
Revenue
compared
to
the
top
three
and
they're,
usually
dedicated
to
how
they
how
they
are
used.
Here's
here's
the
Statewide
examples.
If
you
look,
the
bank
deposit
franchise
fees
about
25
million
was
collected
for
City.
Governments
are
by
City
governments
in
fiscal
year,
21
ABC
licenses
and
Regulatory
fee
about
21
million
Hotel
Transit
room
tax.
You
may
say
well
that
six
million
dollars
doesn't
make
a
lot
of
sense.
We
didn't
have
that
many
cities
report
on
collection.
O
That
is
because
a
number
of
jurisdictions
have
their
tourism
commissions
collect
or
their
Joint
City
County
agencies.
So
these
are
the
cities
that
collected
directly
and
sent
that
to
the
tourism
commission.
Restaurant
taxes
accounted
for
about
28
million
in
revenues
for
city
government.
Again,
that's
a
dedicated
Revenue
source
for
funding
funding
tourists,
tourism
activities
only
in
those
jurisdictions
that
are
authorized
based
on
the
previous
classification
system
and
then
franchise
fees
for
the
privilege
of
using
rights
away
within
the
jurisdictions
accounted
for
72
72
million
dollars
right
around
in
there
in
fiscal
year,
2021.
O
Here's
the
breakdown
of
franchise
fees,
electric
37
million.
You
can
see
natural
gas,
water,
Wastewater,
other
franchise
fees
in
terms
of
what
was
reported
and
how
that
how
that
breaks
down
for
municipal
governments,
other
sources
of
revenue
for
cities
included
intergovernmental
transfers.
We
get
money
from
the
state
where
there
is
an
ability
to
revenue
share,
even
though
section
181
of
the
Constitutions
limited
on
that.
If
the
state
share
is
for
a
Statewide
purpose,
so
you
look
at
Municipal,
Road
Aid,
the
law
enforcement
citation
fee,
federal
and
state
grants.
O
You
may
account
for
the
arpa
money.
The
cares
money
that
comes
through
that
process.
We
put
those
under
intergovernmental
transfers.
The
law
enforcement
citation
fee
was
created
back
in
2004,
that's
actually.
The
first
bill
I
lobbied
was
to
replace
what
they
call
Base
Court
Revenue,
where
we
used
to
have
local
local
courts
and
we
and
when
they
did
away
with
that
in
76,
this
law
enforcement
citation
fee
replaced
base,
Court,
Revenue
resources
for
City
governments,
and
the
Municipal
Road
Aid
fund
is
one
that
we've
talked
quite
a
bit
about
needing
to
get
get
fixed.
O
I'll,
just
give
you
a
few
examples
from
the
city
perspective
which
we're
highlighting
inequities.
Today
the
state
collected
773
million
dollars
in
in
gas
taxes,
342
million
of
that
shared
with
local
governments.
City's
got
49
million
of
that
County's
got
125.7
million
and
then
167
went
to
Rural
and
secondary
road.
So
it's
about
a
27-73
split
between
city
and
county
governments
with
regard
to
the
way
local
local
Municipal,
Road
Aid
is
going.
I
O
Million
coming
to
cities
with
a
Municipal
Road
Aid
fund,
we
spent
310
million
so
about
80
percent
or
better
of
Road,
and
Street
maintenance
comes
out
of
City
General
funds
rather
than
that
Revenue
sharing.
We
also
collect
I'm
nervous
about
mentioning
this
one
parking.
It's
a
leader
there,
parking
fees,
Parks
and
Recreation
fees
for
rental
and
other
things
like
that.
Other
permits,
licensure,
transit
systems
that
we
operate,
investment
earnings,
those
generate
revenue
and
utility
operations,
which
is
a
whole
other
Enterprise
operation
and
accounted
accounted
for
separately.
O
You
can
look
at
this
about
13
million
those
are
user
fees
for
the
privilege
of
either
metered
parking
using
using
City,
Run
parking
garages
or
or
other
types
of
parking
lots
or
other
parking
fees,
Parks
and
Recreations
generated
about
40
million
Statewide
with
cities
other
permits
and
licensures,
which
would
be
Animal
Control,
building
electrical
inspectors,
plumbings
development
impact
fees,
other
types
of
local
fees,
again,
user
fees
dedicated
to
funding
that
specific
service.
Kentucky
law
says
that
your
user
fees
can
only
be
calculated
in
the
amount
to
generate
the
cost
of
providing
the
service.
O
So
these
are
not
Revenue
generators
for
the
purpose
of
funding.
Other
types
of
operation
but
they're
collected
in
order
to
fund
the
service,
that's
being
being
utilized,
19
million
on
investment
earnings
you
all
back
a
few
years
ago,
expanded
their
investment
options.
That's
been
productive
with
that
legislation
that
passed
about
19
million
on
investment
earnings.
O
You
look
at
utility
operations,
water,
sewer,
electric
natural
gas,
telecommunications-
that
in
terms
of
Revenue,
in
order
to
provide
those
Services
again,
cities
can't
take
utility
operations
to
fund
General
operations
that
has
to
be
used
to
pay
the
debt
service
on
our
City
Utilities
to
operate
the
utilities
or
pay
the
debt
service
on
that
or
other
operational
costs.
That
does
not
go
into
the
general
fund
of
Municipal
governments
at
all.
I.
O
C
O
A
H
B
M
B
M
O
D
O
O
O
A
We're
going
to
come
back
into
the
meeting
and
I'm
going
to
turn
it
over
to
the
judge,
executive,
Association,
Todd,
Ruckel
and
Matt
Wireman.
P
Q
Know
Matt
Wireman,
golflin,
County,
judge
executive
and
you
may
ask
what
McLaughlin
County
judge
executive
is
going
to
be
here
for
how
we
got
how
I
got
selected
I'm
a
lifelong
accountant
and
budget
person
having
spent
three
years
in
the
United
States
Army
as
a
finance
specialist
in
over
22
years
in
the
as
a
school
finance
officer,
so
budgets
and
accounting
is
what
I
do.
Okay.
A
P
It
yes
thanks
thanks
chairman
Bridges
chairman
Mills
and
committee
members
for
the
opportunity
to
run
down
through
the
county
budget,
we'll
try
to
be
very
really
brief,
but
Department
of
local
government
takes
three
hours
to
go
over
County
budgets.
We're
going
to
try
to
do
that
in
about
10
minutes,
so
just
bear
with
us,
but
been
a
former
mayor
and
County
Judge.
We
put
together
put
together
a
few
budgets,
so
I'll
try
to
be
very
very
brief,
though.
P
P
You've
got
10
counties
now
the
median
budget
County
budgets
11.1,
but
that
excludes
Jefferson
Fayette
because
it
excuse
the
number
so
much
so
I'll
get
into
the
county
budget,
prep
and
I'm
just
going
to
kind
of
run
down
through
the
timeline
and
then
turn
it
over
to
judge
Weimer
to
kind
of
cover.
You
know
what
he
goes
through
as
far
as
a
county
budget
putting
it
together,
but,
as
you
can
see
there,
we
approved
the
sheriff
and
county
clerk
budgets
by
January
15th.
P
P
I
think
it's
line
four
and
line
11
on
on
those
respectively
and
then
in
February,
the
County
judge,
executive,
County,
Treasurer
finance
officer
will
attend
those
budget
workshops
hosted
by
dlg
and
they'll
start
compiling
the
budget
information
in
February
in
March,
the
County
judge,
executive
County
Treasurer
in
Jailer
by
Statute,
will
prepare
the
jail
budget
that
will
be
submitted
to
the
Fiscal
Court
by
April
1st
by
May.
P
The
1st,
the
entire
County
budget
must
be
submitted
to
the
Fiscal
Court
and
they
must
advertise
for
the
local
government,
economic
assistance
funds
and
the
county
road
Aid
proposed
use
hearings.
They
have
to
advertise
for
those
by
June
1st,
let's
see
by
June
1st,
the
Fiscal
Court
will
meet
to
consider
proposed
budget
ordinance
and
make
a
detailed
investigation
of
each
of
those
activities.
For
Which
accounting
funds
are
to
be
expanded,
expanded
also,
they
will
at
this
point,
hold
those
lgea
and
CRA
proposed
hearings.
P
They'll
have
the
first
reading
of
the
budget
ordinance
and
the
County
judge
will
then
make
the
changes
to
the
budget
as
directed
by
the
Fiscal
Court
members.
This
is
all
done
in
June
by
June
1st.
Then
it
will
be
forwarded.
The
state,
local
finance
officer
at
dlg
to
be
approved
as
to
form
a
classification
and
return
to
the
county.
P
P
Then
we
we
publish
the
budget
ordinance
and
forward
a
copy
of
the
state,
local
finance
officer
within
15
days,
filing
adoption.
It's
a
quick
rundown
of
the
timeline.
As
you
can
see,
January
through
July
1.
We
have
to
do
the
entire
budget
and
then
and
then
the
budget
will
take
take
place
there,
starting
July
1..
So
with
that
I'm
going
to
turn
it
over
to
judge
Wireman
to
run
down
through
his
budget.
Q
Good
morning,
everyone
thank
you
for
the
opportunity
to
be
here.
Man
and
it's
it's
trying
to
teach
Accounting
in
about
five
minutes
is
not
going
to
go
over
very
well,
but
I'm
going
to
do
the
best
I
can
do
and
generally
what
I'm
going
to
do
is
just
say
that
the
the
summary
of
all
of
our
funds
you
see
on
the
on
the
screen
there.
This
is
a
pretty
uniform
all
across
the
state.
Q
We
may
have
some
there
that
other
counties
don't
they
may
have
some
that
we
don't,
but
you
can
see
our
primary
fund
is
our
general
fund,
which
is
the
only
discretionary
fund
that
we
have
in
our
budget.
You
can
see
mine's
at
3.1
million.
That's
a
600
000
increase
this
year
because
we
decided
the
sheriff
and
I
and
the
Fiscal
Court
to
fee
pool
the
sheriff's
new
sheriff
coming
in
struggles
on
day.
Q
One
he's
got
zero
and
he's
been
struggling
for
the
past
couple
of
months,
trying
to
make
payroll
and
to
do
the
things
that
he
needs
to
do
to
enforce
the
law
in
our
community
and
we've
decided
to
start
feedpooling
so
that
increased
our
budget.
Pretty
significantly,
you
see
our
road
fund,
the
road
fund
is
2.3
million,
but
from
a
golflin
county
only
about
1.3
of
that
is
coming
from
State
funds.
Q
The
remainder
of
that
is
either
federal
or
transfers
in
from
our
general
fund
and
the
reason
we
do
that
we
have
to
account
and
book
all
those
things
that
we
get
throughout
the
year
above
and
beyond
as
a
County
government.
If
we're
trying
to
maintain
our
roads
and
in
mcgoffin
County
I've
got
over
900
County
Roads
that
stretch
over
300
miles,
my
County,
Rural,
Aid
and
and
truck
license
fee
is
about
1.3
million.
Q
My
14
staff
members
that
I
have
cost
me
over
six
hundred
thousand
dollars,
so
that
leads
a
little
over
six
hundred
thousand
dollars
to
try
to
maintain
those
roads
and
we've
seen
an
increase
in
our
fuel
cost
over
the
past
two
years
go
from
120
000
over
a
quarter
of
a
million
dollars
a
year.
We
also
see
our
materials
costs
going
up
significantly
tiles
and
to
replace
Bridges
has
went
up
significantly
and,
as
you
know,
in
Eastern
Kentucky
we've
seen
massive
massive
amounts
of
rainfall.
Q
Magoffin
County
was
one
of
those
counties
that
was
hit
with
the
floods
last
summer,
but
we
were
fortunate
in
a
sense
that
it
only
got
the
southern
end
of
my
County.
Had
the
rain
line
went
another
10
miles.
North
I
would
have
been
right
there
with
not
and
Perry
and
Brittany
counties
as
far
as
damage,
but
I'm
still
trying
to
recover
in
it,
and
you
see
that
reflected
in
there
because
of
the
FEMA
dollars.
Q
We've
had
the
budget
from
the
year
before
that
in
21
flooding
you
see
our
jail
fund,
our
our
jail
final
Goffin
county
is
one
of
those
that
have
a
Regional
Jail
I
only
get
about
eight
a
little
over
eighty
thousand
dollars
in
state
funding
that
five
hundred
thousand
dollars
that's
going
into.
That
is
a
transfer
out
of
my
general
fund,
so
my
local
taxes
is
paying
for
the
jail
cost.
That
includes
those
arrested
by
the
state
police,
the
county
and
the
cities.
Our
LGA
fund
is
our
co-severnance
fund.
Mcguffin
county
is
one
of
those.
Q
That's
been
fortunate
to
reap
the
benefits
of
the
coal
Severance
tax,
but
we
fell
off
as
far
as
a
producer
in
the
past
couple
of
years.
So
all
we're
getting
a
single
light
item
and
what
you're
seeing
there
is
projects
that
we
plan
to
do
in
the
upcoming
year.
Our
next
financial
Solid
Waste
fund,
that's
primarily
state
grants
that
we
get
to
do
litter
abatement
and
those
kind
of
things,
but
we
also
offer
a
recycling
program
which
is
a
money
loser.
Q
Q
We're
seeing
a
lot
a
lot
of
things
going
on
with
this
economy
and
with
inflation,
and
it's
just
not
in
mcgoffin
County,
whether
it's
Magoffin
County,
Eastern,
Kentucky
or
Carlisle
County
and
Western
Kentucky.
This
is
a
problem
all
across
the
state.
I
had
a
staff
member
come
in
the
Friday
I'm
saying,
judge,
I,
love
you,
but
I'm
gonna
have
to
find
something
else
he's
making
13
an
hour.
I
said:
well,
you
realize
it
with
your
benefits,
you're
making
over
fifty
thousand
dollars
a
year,
but
he
said
that
that's
not
money
in
my
pocket.
Q
I
know
I
could
go
into
a
lot
more
being
an
accountant
and
a
bean
counter.
I
could
sit
here
and
bore
you
to
tears
and
talk
right
down
to
the
environmentals,
but
I
just
wanted
to
go
over
and
just
cover
the
different
types
of
funds
and
some
of
the
things
that
we're
seeing
that
in
just
a
matter
of
minutes
out
here
in
our
in
our
rural
communities.
Thank
you.
A
Anyone
have
any
questions.
I
do
want
to
share
this.
We
do
appreciate
you
and
the
purpose
of
this
meeting
just
to
get
everyone
in
front
of
you,
so
they
know
your
face.
They
make
phone
calls
for
follow-up
questions
and
everything.
So
with
that,
we'll
move
on
to
JD
Cheney
will
be
up
with
the
city
budget.
Preparation.
Thank.
O
At
least
Mr
chairman
we're
getting
the
exercise
today
and
I
need
it.
You
can
tell
that,
but
let's
see,
there's
KLC
we're
back.
O
Had
it
right
there,
where
it
needed
to
be
and
I
messed
it
up,
didn't
I,
there's
a
budgetary
process,
so
you
asked
us
to
generally
outline
which
is
a
little
bit
different
than
the
state
process.
O
Obviously,
in
the
county
process
on
how
cities
go
about
adopting
their
budget,
we
get
to
do
this
every
couple
of
years
after
city
city
elections
and
educate
those
newly
elected
officials
on
how
the
budget
process
works,
because
most
people
that
go
into
city
office
are
doing
it
on
a
volunteer
volunteer
basis,
they're
not
doing
it
for
the
pay
average
pay
pay
of
Mayors
in
Kentucky
is
about
six
thousand
dollars
a
year.
If
that
tells
you
they're
not
doing
it
for
power
pay,
Prestige
fortune
or
fame.
O
So
we
got
our
dental
hygienists
and
our
school
bus
drivers
and
their
and
their
retired
lawyers
and
bankers
in
there.
So
we
spend
quite
a
bit
of
time
doing
educational
elements
not
just
up
here
at
the
legislature.
I
know,
chairman
Mills
went
through
that
when
he
was
on
the
mayor,
Pro
tem
in
Henderson
and
educating
their
City
officials,
and
so
this
is.
O
This
is
a
snippet
summary
of
the
two-hour
class
that
we
do
on
budgeting
for
City
governments,
I
think
in
a
10
minute,
10
minute
view
the
Kentucky,
Constitution
and
Kentucky
statute
requires
cities
to
adopt
an
annual
budget
by
way
of
an
ordinance.
So
that
has
to
be
an
ordinance
document.
That's
local
local
legislation,
two
readings
on
separate
days,
published
in
a
newspaper
or
published
on
an
alternative
website.
O
City
budgets
by
Statute
have
to
cover
a
fiscal
year
just
like
the
state
process,
July
1
to
June
30th.
Likewise,
under
the
Kentucky
Constitution,
our
city
budgets
have
to
balance
expenditures
in
any
one.
Fiscal
year
cannot
exceed
the
revenues
in
any
one
fiscal
year.
If
a
city
government
in
Kentucky,
we
do
have
a
safety
Clause,
we
don't
shut
down
cities.
If
there's
a
failure
to
get
the
budget
adopted.
O
If
cities
fail
to
get
the
budget
in
place,
the
ordinance
enacted
by
July
1
in
any
fiscal
year
there's
a
savings
Clause
under
State
Statute.
It's
not
a
constitutional
provision,
but
under
State
Statute
this
the
city
has
to
continue
to
operate
under
the
previous
fiscal
Year's
budget
as
if
it
had
been
re-adopted.
O
O
The
budgetary
process
begins
with
the
executive
Authority
and
that's
going
to
be
different
from
City
to
say,
I'm.
Looking
up
here,
just
at
the
composition
of
this
committee
with
Lexington,
you
have
a
separate
executive
Authority
in
Nicholasville
representative
Lockett
you're,
run
by
a
city
commission
with
no
separate
executive
Authority,
and
there
are
well
Richmond
left
Diana
left,
but
Richmond
has
a
city
manager,
form
of
government,
so
that
all
depends
on
how
the
city
government's
organized
the
vast
majority
of
cities
are
organized.
Under
the
mayor
council,
former
government
there's
a
separate
executive
Authority.
O
The
mayor
is
the
CEO
in
most
cases
and
most
Kentucky
cities
that
the
mayor's
the
CEO
of
the
city
and
the
mayor
is
responsible
for
proposing
much
like
the
governor
does
to
you
all,
proposing
a
budget
to
the
city,
legislative
body,
the
council
at
least
30
days
prior
now.
In
practice.
Getting
the
proposed
budget
June
1st
for
a
July
1
budget
doesn't
really
work
in
most
cases.
O
This
is
done
in
March
or
April,
where
the
executive
Authority
will
make
the
proposed
budget
and
include
a
budget
message
that
has
a
description
of
all
the
governmental
goals,
goals
that
are
fixed
by
the
budget.
The
important
features
of
the
budget,
the
statement
of
the
reason
for
any
changes
from
the
previous
fiscal
Year's
budget
and
all
of
that
much
like
the
governor's
budget
address
to
the
legislature.
O
Every
two
years
when
the
governor
proposed
the
budget
proposes
a
budget
so
proposed
budget
document
message
can
be
written,
delivered
orally
and
generally
that's
in
April,
but
it
has
to
be
done.
30
days
prior
to
July
1.,
once
the
legislative
body,
the
commission,
Board
of
Commissioners
or
the
council,
gets
that
proposed
budget,
then
they
can
do
whatever
they
want
to
do
with
it.
Just
like
the
general
assembly
can
do
that
to
a
Governor's
budget.
If
you
want
to
water
it
up
and
throw
it
in
the
trash,
then
the
council
can
do
that.
O
It's
up
to
the
council
at
the
end
of
the
day.
I
know
mayor
mayor
representative,
Chester
Burton
went
through
that
process
as
mayor
of
Shively,
where
she
proposed
the
budget
and
the
council.
The
council
came
in
not
that
they
threw
your
proposed
budget
away.
They
took
her
proposed
budget
in
its
full
form,
but
the
budget
ordinance
has
to
have
two
readings
published
in
the
newspaper.
We
talk
about
that
another
another
day
about
newspaper
publication,
but
the
budget
ordinance
can
be
amended
at
any
time.
O
So,
unlike
the
general
assembly,
when
you
all
enact
the
state
budget
and
you
adjourn
signee
die
where's
your
amendment
process,
you
all
can't
come
back
together
and
amend
that
that
budget,
unless
you're
called
into
a
special
session,
City
legislative
bodies
continue
to
go
so
by
ordinance.
They
can
enact
an
ordinance
at
any
point
in
time
and
amend
the
budget
ordinance
if
they
need
to
City
budgets
run
the
gamut,
as
you
may
imagine,
414
cities
now
I
think
remaining
in
Kentucky.
O
We
had
one
dissolve
according
to
dlg
a
couple
weeks
ago
that
they
dissolved
under
under
chairman
mills's
bill
414
cities.
Some
of
them
are
tediously
line
item
where
they'll
go
through
and
and
and
legislative
bodies
will
want
to
manage
the
the
number
of
paper
clips
and
others
are
broad,
departmental
having
the
police
department,
but
the
it
has
to
be
by
Fun
type,
but
the
city
legislative
body
can
design
that
process.
However,
they
want
to
and
be
a
specific
or
as
broad
as
they
as
they
want
to.
O
Once.
That's
adopted
much
like
what
you're
familiar
with
from
the
state
level
agency.
The
administration
of
the
budget
goes
back
to
the
executive
Authority
and
the
executive
Authority
has
to
operate
within
the
the
ordinance
budget
ordinance
adopted
by
the
city,
and
that's
the
mayor
in
the
mayor
council,
former
government,
under
the
city
manager,
former
government.
That's
a
city
manager
does
that
administratively,
if
you're
in
a
commissioned
form
of
government
like
like
Nicholasville,
hopefully
you
have
a
city
administrator.
O
If
not
all
five
members
of
the
commission
are
responsible
for
meeting
and
administering
the
budget,
the
executive
Authority
has
to
provide
ongoing
updates
to
the
legislative
body.
Legislative
body
makes
the
Appropriations
decisions
they
control
the
checkbook,
even
though
the
executive
Authority
is
administering
that
the
legislative
body
has
to
come
back
or
the
executive
Authority
has
to
come
back
at
least
quarterly
and
provide
a
statement
of
the
budgetary
comparisons
for
each
fund
adopted
in
the
budget
at
least
once
every
year.
O
Some
cities
demand
that
every
every
month
on
a
monthly
basis,
if
they're,
smaller
and
then
state
law
addresses
how
we
have
to
account
for
that
accounting
system
that
cities
use
has
to
conform
to
state
law.
All
these
state
law
requirements
we're
talking
about
and
gasby
gasby
standards.
We
have
to
do
gasby
accounting.
So
that
means
all
these
new
gasby
rules
that
come
up.
We
do
not
do
statutory
accounting
basis.
The
statute
says
we
are
to
use
gasby
in
our
process.
O
City
funds
can
only
be
spent
in
accordance
with
what
was
in
the
budget
ordinance
if
the
mayor
goes
out
and
makes
a
contract
outside
that
budget
ordinance
or
makes
any
kind
of
expenditure
of
any
City
employee.
Outside
of
that,
then
guess
what
the
contract's
voidable,
not
avoidable,
contracts,
void,
and
it's
recoverable.
Personally.
This
is
one
of
the
few
times
where
you
see
City
officials
with
personal
personal
liability
exposure
on
making
expenditures
outside
outside
of
the
budget
ordinance.
O
Likewise,
attacks
imposed
and
collected
and
spent
on
something
other
than
the
purpose
that
it's
specified
for
is
also
recoverable,
so
contracts
can
be
voided.
Employee
can
be
held
personalized,
so
so
there's
a
strong
incentive
for
the
budget
administrator
the
executive
authority
to
follow
the
ordinance.
Precisely
and
that's
why
you
see
a
lot
of
cities
amend
their
budgets
frequently,
especially
those
that
get
really
line
items
councils
get
excited
about.
This
is
a
good
way
to
control.
The
mayor
is
to
be
really,
let's
tell
them
how
many
paper
clips
they
can
have.
O
They
get
really
excited
about
that,
but
then,
when
they're
having
to
have
special
meetings,
three
or
four
times
three
or
four
times
to
amend
the
budget
ordinance
because
they
were
so
specific,
it
gets
to
be
irritant.
So
most
cities
kind
of
meet
in
the
middle,
where
they're,
where
there
is
not
a
ton
of
line.
Item
line,
item
budgeted,
there's
no
line
item
veto
for
the
executive
Authority
in
the
process
at
all.
O
It's
either
approved
the
whole
budget,
ordinance
or
or
veto
the
whole
budget
ordinance
if
you're
in
the
mayor
council
form
of
government,
but
that's
generally
the
price
generally.
The
process
that
cities
utilize
locally
driven,
that's
the
rubric
that
it
goes
under,
hopefully,
I
got
got.
Maybe
I
went
12
minutes,
but
that's
usually
a
two
hour
discussion.
Any
questions
about
our
process
well,.
O
O
You're
really
good
all
right:
let's
keep
rolling
Municipal
expenditure.
So
what's
in
those
budget
ordinances,
what
are
City
spending
spending
money
on?
We
break
things
down
in
air
reports
into
three
major
Municipal
expenditure
areas,
salaries
and
wages,
General
operations,
capital
outlays
and
then
into
functional
areas
of
General
government,
public
safety,
Public
Services,
community
services
and
utilities,
of
course,
of
being
the
those
those
functional
areas.
O
So
if
we
look
at
cities
Statewide
based
on
their
reporting
salaries
and
wages,
1.3
billion
dollars-
if
you
look
at
that
and
that
that
does
not
include
fringe
benefits
or
unemployment,
so
health
insurance
costs,
it
does
include
pension
contributions
and
other
costs
are
out
of
that.
So
that
is
the
most.
O
Other
operations
include
all
other
costs,
materials
supplies,
contractual
Services,
miscellaneous
costs,
two
2.1
billion
and
then
Capital
outlay,
which
are
for
items
that
that
are
over
a
thousand
dollars
that
have
three
years
or
greater
life,
one
one
billion
one
billion
dollars,
looking
at
it
Statewide
and
then
breaking
down
we
have
had.
O
We
have
had
some
great
experience
since
we
separated
the
County
Employees
Retirement
Systems
from
the
State
Retirement
Systems,
but
the
the
pension
contributions
are
a
huge
huge
cost
for
local
governments
that
participate
in
cers
you'll,
see
there
for
non-hazardous,
142
million
164
for
hazardous.
We
have
several
cities
that
maintain
their
own
Lake,
we'll
call
them
Legacy
pension
plans
for
police
and
fire
health
insurance,
172,
a
million
dollars
other
employment
types
of
benefits,
119
million
dollars.
O
When
you
break
that
down
now
we
have
a
few
examples
here,
as
well
of
across
the
five
across
the
five
functional
areas.
From
from
a
few
cities,
we
have
Henderson
Paducah,
Brownsville,
Lexington
coal
run,
Village
Senator
Willard
didn't
show
up,
but
we
put
coal
run
in
there
for
him
and
then
city
of
Berea
for
representative
bray.
To
get
a
few
of
you
all
on
the
on
the
committee
to
kind
of
have
a
comparison.
You
look
at
Lexington
compared
to
General
government
wages.
O
Now
General
General
government
wages
includes
City,
Hall,
expense,
elected
official
expense,
public
buildings,
General
insurance
coverage
bond
insurance
costs.
Those
things
are
covered
under
under
a
general
government
for
Public
Safety.
O
Community
services
are
are
less
prevalent
in
a
number
of
Kentucky
cities,
but
those
include
things
like
Parks
and
Recreation
comes
out
of
that.
Any
public
transport
transit
public
health-
if
the
local
governments
make
any
City
governments
make
any
contribution
to
that
housing.
A
lot
of
City
operate.
Cities
operate,
housing
authorities
would
come
out
of
that
Community
Services
Program,
so
just
visually.
Without
going
down
each
number,
you
can
kind
of
take
a
look
and
see
how
that
varies
from
Community
to
community
and
what
their
priorities
are.
O
The
legislative
body
in
that
budgeting
process
gets
to
the
side
whether
or
not
you're
going
to
create
the
new
park.
Are
you
going
to
create
and
invest
in
that
in
a
particular
budget
year?
It's
just
like
it
it,
except
at
a
more
micro
level
and
I
know.
Senator
Bledsoe
made
his
Bledsoe
oversaw
this
at
Lexington.
It's
just
like
here,
except
more
on
a
micro
level
in
terms
of
those
elected
leaders,
those
legislative
body
members
making
decisions
on
how
they're
going
to
spend
their
funds
so
I'll.
O
Just
let
you
all
look
at
those
for
purposes
of
brevity,
so
you
can
compare
them
across
and
see
how
different
Kentucky
cities
cities
are
in
terms
of
how
they
raise
their
revenue
and
how
they
spend
their
revenue,
and
those
are
local
decisions.
They're
best
made
at
the
local
level
and
those
local
priorities
are
are
set
there.
I
would
be
happy
to
answer
any
questions
about
the
expenditure
categories,
budgeting
process
or
otherwise
Mr
chairman.
But
if
not
I'll
conclude.
A
I,
don't
see
any
questions,
but
we
do
appreciate
the
time
put
into
this
and
the
educational
purposes
we're
we're
gaining
from
this
knowledge.
So
we
we
do
appreciate
you
JD
and
KLC.
If
anyone
does
I'm
sure
we
feel
like
we're
drinking
out
of
fire
holes,
but,
as
we
take
a
few
days
to
to
turn
this
around,
have
questions
with
I
would
encourage
you
to
reach
out
to
Jody
he's
really
good
at
keeping
you
up
to
date
and
keeping
you
informed.
Thank.
N
Oh
perfect,
I
apologize,
I
misunderstood
the
the
flow
earlier
and
I
was
just
trying
to
get
right
into
the
expenditures.
Piece.
I
was
nearly
done
so
I
apologize
at
the
last
slide.
I
threw
up
there,
it's
only
the
one
slide
and
I
mentioned
it
as
I
was
kind
of
wrapping
up.
N
Just
because
that's
that's
it
I
mean
that's
where
where
do
counties
spend
their
money,
and
this
little
word
picture
essentially
shows
scale
of
of
the
larger
the
the
name,
the
more
significant
the
expenditures
are,
as
I
started,
to
say,
as
I
jumped
ahead
of
myself
earlier,
the
two
largest
areas
of
expense
expenditures
within
counties
across
the
state
are
in
our
road
maintenance
and
jails.
Again,
not
surprisingly,
to
most
of
the
members
of
this
committee.
N
You've
heard
us
testify
many
times
long
before
I
was
even
in
this
role
at
caco
County
officials,
County
judges
have
talked
about
the
jail
costs.
There's
a
committee
going
on
in
another
room
about
jails,
a
task
force
to
study
that
in
fiscal
year,
22
322
million
dollars
Statewide
among
counties
which
was
expended
on
jail
operations
and
as
I
talked
about
that
that
match
of
state,
federal
and
and
local
generated
dollars.
Earlier.
N
You
know,
there's
a
heavy
dependency
with
the
state
with
the
county
jails
on
the
state
because
of
the
relationship
we
have
on
on
Housing
State
inmates
and
those
per
diems,
and
so
a
lot
of
that
money
comes
from
the
state
in
in
that
total,
but
about
125
million
is
supplemented
from
the
County's
tax
revenues
for
the
jails
and
then
the
road
I
mentioned
the
road
fund
is,
is
the
largest
single
fund
within
a
county,
a
budget
355
million
and,
as
JD
explained,
the
sources
of
that
earlier
with
the
motor
fuels
tax
and
how
that's
distributed
again.
N
The
Lion's
Share
of
roads
and
maintenance
of
Roads
rest
with
counties
across
the
state
over
half
of
the
road
miles
in
the
state
or
County
maintained
roads
and
a
third
of
the
bridges.
So
again,
not
surprisingly,
that
a
large
amount
of
money
is
spent
on
County
Roads.
You
know
when
you
get
outside
of
those
things,
other
things
kind
of
fall
off
in
terms
of
their
total
of
the
county
sheriff
and
the
county
clerk.
As
the
previous
presentation
kind
of
highlighted,
those
budgets
are
kind
of
tricky.
N
Some
counties
do
blend
those
budgets
with
fee
pooling,
as
judge
Wireman
was
talking
about
in
his
County,
but
most
counties
don't
so.
You
have
a
separate
budget
for
the
sheriff
and
the
county
clerk
where
there
are
dollars
that
are
moving
over
from
the
County's
general
fund.
But
those
two
offices
are
a
lot
of
fees
about
90
million
plus
does
go
into
to
our
sheriffs
and
and
law
enforcement
roles
with
the
sheriff's
office
from
the
general
tax
revenues.
But
remember
the
sheriff's
role
is
much
bigger
than
law
enforcement
for
the
county.
N
The
sheriff
serves
as
the
chief
collector
of
taxes
for
all
taxing
jurisdictions.
The
sheriff
is
the
person
who
is
responsible
for
making
sure
that
if
you
want
to
have
somebody
served
with
papers
that
all
goes
to
the
Sheriff's
Office,
the
sheriff's
required
to
provide
provide
security
for
the
judicial
facility
and
the
judge
is
there
so
again,
it's
broader
than
law
enforcement.
In
fact,
many
Sheriff's
law
enforcement
is
not
the
primary
responsibility
that
they
have
because
of
the
small
budgets
they
have
in
these
small
counties.
Ems.
N
Another
big
one,
you've
maybe
heard
us
talk
about
before
not
every
county
is
in
the
EMS
business,
but
where
there
is
no
private
provider
or
other
option
the
county.
Ultimately,
that
falls
to
the
county
to
do,
and
so
54
million
Statewide
spent
on
EMS
judge
Wireman
talked
about
the
huge
amount
of
money
in
his
budget
allocated
for
9-1-1
dispatching
another
54
million
dollars
in
County
budgets
to
do
dispatching
across
the
state
about
18
million
in
Animal,
Control
I
probably
got
more
calls
about
dogs
when
I
was
judged
and
any
other
issue.
N
So
maybe
that's
where
we
should
spend
more
money
based
on
the
amount
of
attention
you
get
on
a
topic,
but
about
18
million
on
Animal
Control
elections,
another
big
one
that
Counties
have
coroner's
office,
PVA
support,
County,
attorneys,
fire
fire
departments,
most
counties
don't
have
a
county-wide
or
paid
fire
department,
but
they
do
provide
a
lot
of
of
support
to
the
rural
volunteer
fire
departments.
Chairman
Bridges.
The
list
is
long
but
again
that's
just
a
snapshot
of
all
those
expenditures.
I'm
trying
to
be
brief
than
normal.
So
again,
I'm
happy
to
answer
questions.
A
Schedule
that's
been
packed
full,
but
the
the
knowledge
is
imminent
that
we
be
aware
of
all
this
and
I
appreciate
that
appreciate
both
Keiko
and
KLC.
They
have
done
extra
business
and
I'm.
Sorry
I
think
maybe
Senator
Berg
may
have
a
question.
A
You
sure,
okay,
okay,
I'm
sure
she's
got
your
numbers
on
speed
dial,
so
we'll
follow
up
that,
but
I
would
encourage
any
members
that
even
those
that
may
have
tuned
in
late
or
whatever,
if
they
have
any
questions
reach
out
to
all
the
ones
that
have
spoke
today,
they're
they're,
very
knowledgeable
and
can
get
you
up
to
speed
on
all
the
needs
that
we
have
throughout
local
government.
With
that
one
quick
announcement,
the
next
meeting
of
the
committee
will
be
August
the
24th
at
the
state
fair.