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Council okays hold on hike of water rates
Sep 22, 2005 | 327 views | 0 0 comments | 4 4 recommendations | email to a friend | print
It appears Leitchfield's water rates will not take a 20 percent jump, at least not until January 2007.

The council Monday decided to grant the Utilities Commission a temporary waiver letting them hold off on the increases. Monday's action was the first reading of the waiver, but opposition to putting off the increase isn't expected.

Utilities Commission members last Thursday (Sept. 15) heard a report that said the water department was $242,000 in the red, mainly the result of the County Water District's new water plant removing the city's income from sales to the district.

Also, an ordinance passed by the commission in 1993 required an automatic increase in rates when such a deficit occurred.

The commission asked for a waiver in view of other expected increases in ratepayers' bills (natural gas, gasoline, etc.) and decided to ask for the waiver.

A question from Councilman Leon Shaw was directed at the 2007 reconsideration. Will the increase then be double the 20 percent this year? he asked. The answer from City Clerk-Treasurer Kerry White was "not likely, but it might be something like 4 percent more than the current 20 percent."

CPA Dan Drane, an independent auditor, gave the city a "clean opinion" on an audit of the 2004-05 books.

The city reports it took in $5.3 million during the year and spent $4.4 million. The report said total revenues had increased by just over 8 percent, while expenses increased by about 5 percent from the previous year.

One major impact on the budget during the past year was the closure of Bosch Tools Corporation (Vermont American), dropping income to the city from occupational taxes of about $55,000 to $64,000. This loss, the city reported, was offset by growth at Bel Cheese, Inc.

In his report, Drane said the city came to the end of the fiscal year with $7.8 million in assets and $1.1 million in liabilities, giving it a $6.7 million net worth.

In other action, the council:

  • Agreed to borrow a decibel meter from another police agency to test, before buying them for policemen at a cost ranging from $150 to $400.

    The council asked Police Chief Greg Dennison to experiment with the meter so that the council could set a standard reading in -- boom cars vs. regular traffic noise -- in a future ordinance. There was also a request that the final ordinance include a higher fine for noise after dark.

    The council, in the face of renewed complaints about the noise from boom cars, is taking a new look at a possible ordinance. A similar law was tabled two years ago.

  • Agreed to grant a zoning request for 2.5 acres off White Street for Public Institutional use. The property is next to the Watkins Development tract donated by the city for a drug recovery center.

    Councilmen Billy Dallas and Leon Shaw did not vote on the zone change, and Mayor William H. Thomason broke the tie vote with a "yes." (Two council members were absent.)

  • Approved the coming year's tax rates after no one objected in a public hearing. The new rates are 12 cents per $100 on motor vehicles; 14.8 cents per $100 on personal property and 11 cents per $100 on real estate.

  • Granted a Cable TV Franchise to Bluegrass Telephone Company.

  • After a closed session, granted authority to the mayor to negotiate the purchase of two properties that join the city's land.

  • Although it was described as normal city subsidies of park facilities, a report to the council showed the city pool with a $17,300 deficit; the Little League with a $17,300 deficit; the Babe Ruth League with a $4,500 deficit; and the Girls Softball with a $7,400 deficit.

  • Agreed to delay offering city employees dental and vision coverage until questions from the Utilities Commission on its affordability could be answered so that, when provided, it covered all employees.
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