City Manager Nate Pagan on Tuesday said the city should not lower its occupational license fee and insurance premiums after Mayor Tom Watson previously asked the finance department to look into reverting back to the rates present in 2017.
In 2017, the Owensboro City Commission voted to increase the occupational license fee rate from 1.39% to 1.78%. Insurance premium taxes were raised from 8% to 10% respectively.
Pagan noted it would not be in the city’s best interest to revert to the 2017 numbers.
In a normal future casting, Pagan said that the city assumes nominal deficits that would likely be corrected when the year comes, when they would instead showcase profits.
He then said there is the possibility of the Commission exploring larger projects that would ultimately take profits from the budget and push the deficits even lower.
Additionally, with the decrease in tax rates, he said the deficits over time add up quickly.
“The deficits get rather large rather quickly, because of those additional costs in projects … thereby creating a substantial decrease in the revenues,” Pagan said.
Since the topic was not an action item there was no need to vote; however, the mayor conceded to Pagan’s recommendation.
In other business, Commissioners also approved the zone change of 407 East 3rd Street, which will be home to the future bar and multipurpose business Tiki Lab.
The Commission received the ordinance after the Owensboro Metropolitan Planning Commission received an appeal from a resident asking officials to reconsider the approved rezoning.
In a previous OMPC meeting, residents said they opposed allowing Tiki Bar to open by claiming there is a lack of parking, saying how late the business would be open (though no hours were ever announced), and saying alcohol would be in too close a proximity to Friends of Sinners on Clay Street.
The couple looking to opening Tiki Lab previously said the business is around 50% alcohol-centered, but they also plan to hold yoga classes along with a food eating area and a gathering place for community members.
The party appealing the rezoning did not come to the either of the last two Commission meetings to plead their case as to why it should not be rezoned. So, Commissioners ruled unanimously in favor of upholding the rezoning.
Commissioners also ruled in favor of the revised compensation for city employees and non-elected city officers in accordance with the personnel and pay classification plan.
The Kentucky Law Enforcement Foundation Program Fund increased the annual supplement for law enforcement officers and firefighters from $4,000 to $4,300, which forced the City to match that in their budget for the upcoming Fiscal Year.
Commissioners also heard an update on Cravens Pool. Bids for construction be accepted through Aug. 4. Director of Parks and Recreation Amanda Rogers said once they approved a bid, they hope to start construction in September.
