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HomeMy WebLinkAbout2026-03-8872ORDINANCE NO. 2026-03-8872 AN ORDINANCE AMENDING THE 911 PARCEL FEE ORDINANCE WHEREAS, the City of Paducah previously enacted a Parcel Fee Ordinance to facilitate the funding for the provision of 911 services; and WHEREAS, the City of Paducah and McCracken County are responsible for promoting public safety and the general welfare of the citizens of Paducah, McCracken County, Kentucky; and WHEREAS, the operation of an emergency 911 communications system is one of the most critical of all public services, indispensable and necessary for the safety of the citizens of Paducah, McCracken County, to ensure prompt response to emergencies; and WHEREAS, the City of Paducah and McCracken County have entered into an Interlocal Cooperation Agreement for the provision of joint 911 services; and WHEREAS, new categories to include structures storing residential chattel and governmental/public housing structures are necessary to ensure all "occupiable" parcels are properly assessed; and WHEREAS, it has been determined that medical facilities should be charged a fee commensurate with other similarly -sized commercial facilities; and WHEREAS, to ensure fairness and consistency as to all appeals hearings, the Board of Commissioners finds it necessary to adopt Hearing Rules and Procedures to be utilized by the 911 Joint Appeals Board, and to include a process to appeal Final Orders of the Joint Appeals Board to McCracken District Court; and WHEREAS, it has been determined that a parcel that is occupiable and not just occupied shall be assessed a 911 fee; and WHEREAS, the calculated fee, which is amended each year in accordance with the Consumer Price Index, shall be rounded to the nearest dollar. NOW THEREFORE, BE IT HEREBY ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH THAT THE 911 PARCEL FEE ORDINANCE IS AMENDED AS FOLLOWS: SECTION 1. That there is hereby established, imposed, and implemented an annual parcel fee on all [eeeupied] occupiable individual residential units and all [eeeupied] occupiable individual commercial, religious, charitable, educational, and public use units located within the territorial limits of the City of Paducah, as determined from the records of the McCracken County Property Valuation Administrator's office. The fee shall be used for the delivery of Enhanced 911 emergency telephone service as provided for by KRS 65.760 and the associated maintenance of systems and devices, including but not limited to, operating costs of the Paducah - McCracken County 911 Services Center and purchase and maintenance of E911 equipment. SECTION 2. The Board of Commissioners hereby imposes the following annual parcel fees on all parcels of [eeeupied] occupiable real property as more accurately defined in Sections 3 through [5] 7 of this Ordinance, which are located within the jurisdictional limits of the City of Paducah: A. Super Commercial Unit (parcel contains structures totaling in excess of 25,000 sq. ft.) $1,550 B. Large Commercial Unit (parcel contains structures totaling between 7,500 and 25,000 sq. ft.) $860 C. Medium Commercial Unit(parcel contains structures totaling between 2,500 and 7,500 sq. ft.) $325 D. Small Commercial Unit (parcel contains structures totaling between 1 and 2,500 sq. ft.) $210 E. Parking Lots (which shall include, but not be limited to, parking lots, garages, or other areas designed for the parking of motor vehicles as defined by KRS 186.010(4) whereby the owner, occupant, lessee, or possessor of any portion of the parcel leases, rents, licenses, bails, or otherwise allows the parking or storage of motor vehicles in exchange for consideration) $150 F. Public Use Units (emergency service, governmental, religious, charitable, and educational, excluding medical facilities) $35 G. Residential Units (including residential storage structures as defined in Section 4, and including Governmental/Public Housing Units as defined in Section 7) $45 In the event a parcel is mixed use, the parcel shall be assessed at the highest applicable assessment rate. Mixed-use parcels shall be classified by combining the total square footage of all structures on the parcel, regardless of residential or non-residential use. The aforementioned annual parcel fees are adjusted annually (and have been adjusted annually since this ordinance's inception on October 22, 2024) in accordance with Section 16 below. SECTION 3. An [eeeupied ] occupiable residential unit shall be defined as each residential space designed and/or utilized for occupancy for residential purposes and includes each apartment and/or duplex unit, house, and mobile home as a separate residential unit. SECTION 4. An occupiable residential storage structure shall be a stand-alone structure on a parcel in which the building is used or could be used for the storage of chattel for residential purposes, for example, a garage on a lot separate from a residence. SECTION [415. An [eeeupied ] occu ip able commercial unit shall be defined as a non- residential building space of any size designed and/or utilized for occupancy by [an individual non residential business o ate e ffterprise] a business or private enterprise or chattel relating to a business or private enterprise which involves the manufacture, sale, lease, or rental of goods, or services to the public. A medical facility shall be considered a "commercial unit". A medical facility shall include any parcel having a building in which medical services are provided or individuals are assessed for the potential provision of medical services. A medical facilites be assessed the applicable fee regardless of whether the owner has any special status under the Internal Revenue Code. SECTION [5] 6. An {eeeupied] occupiable public use unit shall be defined as any parcel owned or leased by: A. Any City, County, State, or Federal Government in which the parcel is used for the purposes of conducting the regular business of its government, its police department, or its fire department. B. A Fire District, so long as the parcel is used by the District to deliver fire protection services pursuant to KRS Ch. 75. C. A non-residential building space of any size designed and/or utilized for occupancy for religious activities and/or worship. D. A non-residential building space of any size designed and/or utilized for occupancy for the carrying out of a charitable purpose as determined by Section 501 of the Internal Revenue Code, excluding medical facilities. E. A non-residential building space of any size designed and/or utilized for occupancy for the purpose of education, the administration thereof or extracurricular activities. SECTION 7. An occupiable governmental/public housing unit shall be defined as residential space owned by governmental entity and/or classified as public housing and includes each residential space designed and/or utilized for occupancy for residential pumoses, including each apartment and/or duplex unit, house, and mobile home as a separate residential unit SECTION [g] S. The 911 parcel fee shall be placed upon the City of Paducah's property tax bills prepared by the City's Finance Department beginning with the 2024 tax bill and continuing every year thereafter. The due dates shall be the same as the property tax due dates set by the Board of Commissioners. SECTION [712. For the first year only, being the 2024 tax year following adoption of the original ordinance on October 22, 2024, owners of all occupied residential rental units shall be eligible to claim a rebate of $22.50 per unit against the annual fee due. This rebate which is the equivalent of a 6 -months share of the fee, is granted to allow owners of rental property additional time to recover some or all of the amount of the fee from tenants. The adoption of this amendment shall not extend, renew, or reestablish eligibility for this first-year rebate. In subsequent years, the full amount of the annual 911 parcel fee shall be paid for all [eeeapied] occupiable residential rental units. [in order to be eligible for this rebate, the propeFt. . of the eeeupied feRtal unit(s) shall eemplete and submit the form, attaehed hefeto, to the City of Padueah Finanee Department, whieh shall be reeeived by the Fhiafiee Department an or be TT d..«d1T] i SECTION [8110. The Board of Commissioners, in conjunction with McCracken County, Kentucky, shall amend the Interlocal Agreement for Provision of Emergency 911 Services to create a "Joint 911 Parcel Fee Appeals Board" to address all appeals of parcel fee assessments. SECTION [)] 11. Any property owner may appeal the classification of their property under the terms of this Ordinance. However, an appeal shall not affect the date the parcel fee is due. A property owner wishing to appeal a classification shall file an appeal by delivering a notice of appeal to the Paducah City Clerk by no later than December 1 st of the year for which the fee is due. The appeal shall be forwarded to the City Finance Department or the McCracken County Finance Department, whichever is applicable. The relevant staff shall consider the information provided in the appeal and make a determination as to whether the property should be reclassified without requiring the property owner to present further evidence. If it is determined that the property should be reclassified, the property owner shall be notified of the reclassification and be provided appropriate relief, including, but not limited to, a refund of all or a portion of the parcel fee paid during the applicable tax year. If no change in classification is deemed warranted, the appeal shall be forwarded to the Chairman of the Joint Appeals Board who shall set a date for a meeting at which time the property owner can present evidence and otherwise be heard on the issue of classification. The property owner shall bear the burden of proof that the property has been incorrectly classified by clear and convincing evidence. The applicable Finance Department shall also have the right to present evidence of proof that the classification is appropriate. If the property owner presents sufficient [proof of 1aek ,.r,.,.,...,., ne y and/or evidence to indicate that the parcel was inappropriately classified, the Joint Appeals Board shall provide relief to the party by a majority vote, including, but not limited to, a refund of all or a portion of the parcel fee paid during the applicable tax year. The attached Hearing Rules and Procedures are hereby adopted and incorporated herein by reference and shall be utilized by the Joint Appeals Board in relation to all appeals it considers. SECTION 12. Following a hearing before the Joint Appeals Board, the appellant may appeal the Board's decision by filing a Notice of Appeal with the McCracken District Court within 30 days of the Final Order of the Board. SECTION [10] 13. All real estate parcel fees shall be collected by the City of Paducah's Finance Department. SECTION [44114. The real estate parcel fees collected shall be accounted for and kept separate and apart from other accounts and may only be used for the funding of emergency 911 services as permitted by state law and as more fully set forth in the Interlocal Cooperation Agreement between the City of Paducah and McCracken County. SECTION [42115. The failure of any owner of real property to pay the fee as set forth in this Ordinance shall be punishable as a Class A Misdemeanor and/or by civil collection process. SECTION [43] 16. As more fully set forth in the Interlocal Agreement for the Provision of Emergency 911 Services entered into by the City of Paducah and McCracken County, the 911 Board shall review the fee imposed by this Ordinance and by no later than April I st of each year make a recommendation to the City of Paducah as to any adjustments to the then -effective parcel fee to ensure adequate funding of the Joint 911 services. SECTION [474] 17. Unless otherwise determined by the Paducah Board of Commissioners, commencing April 1, [2823] 2026, and on April 1 of each successive year thereafter, all parcel fees set forth in this Article shall be automatically adjusted based on the Urban Consumer Price Index for the South Region as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the prior January. After calculation, the parcel fee shall be rounded to the nearest dollar. SECTION [1-5] 18. The provisions of this Ordinance are declared to be severable. If any section, phrase or provision shall for any reason be declared invalid, such declaration shall not affect the validity of the remainder of this Ordinance. SECTION [-16] 19. This Ordinance shall be read on two separate days and become effective upon summary publication pursuant to KRS Chapter 4 GEORGE BRAY, MAYOR ATTEST: — CVL'� Lindsay Parish, ty Clerk Introduced by the Board of Commissioners, February 24, 2026 Adopted by the Board of Commissioners, March 24, 2026 Recorded by Lindsay Parish, City Clerk, March 24, 2026 Published by The Paducah Sun, March 29, 2026 4921-4441-1779 ATTACHMENT 911 PARCEL FEE APPEALS BOARD HEARING PROCEDURE 1. When a person or entity has appealed his/her/its property classification under the 911 parcel fee assessment (hereinafter "Appellant") as set forth in the applicable City and County ordinances, and the issue cannot be resolved administratively, the 911 Parcel Fee Appeals Board (hereinafter "the Board") shall schedule a hearing. Not less than ten (10) days before the date of the hearing, the Board shall notify Appellant of the date, time, and place of the hearing. The notice may be given by regular first-class mail; by certified mail, return receipt requested, by personal delivery; or by leaving the notice at the person's usual place of residence with any individual residing therein who is eighteen (18) years of age or older and who is informed of the contents of the notice. 2. If an Appellant fails to appear at the hearing, a default judgment shall be issued and the 911 parcel fee assessment shall be deemed appropriate, with a Final Order issued by the Board. Notice of the Final Order shall be provided to Appellant by regular first-class mail; by certified mail, return receipt requested; by personal delivery; or by leaving the notice at the person's usual place of residence with any individual residing therein who is eighteen (18) years of age or older and who is informed of the contents of the notice. 3. Hearings shall be conducted informally, and the Board Chair shall make determinations regarding the admissibility of evidence. Formal rules of evidence shall not apply, but fundamental due process shall be observed and shall govern the proceedings. The Board Chair shall limit evidence to that which reasonably relates to property classification only. 4. All testimony shall be taken under oath and audio or audio/video recorded. The Board Chair shall swear in witnesses prior to the giving of testimony, and all witnesses must be available for cross-examination or have their testimony stricken from the record. All witnesses must first be recognized by the Board Chair prior to speaking to ensure they have been properly sworn in before testifying. 5. The Order of Presentation shall be as follows: ORDER OF HEARING PRESENTATION: 1. Sworn witness testimony and/or presentation of evidence by Appellant. 2. An offer to the City of Paducah or McCracken County to cross-examine Appellant's witnesses. 3. An offer to the Board Members to question Appellant's witnesses. 4. Upon the completion of Appellant's sworn witness testimony and/or presentation of evidence, an offer to the City of Paducah or McCracken County to present sworn witness testimony and/or evidence. 5. An offer to the Appellant to cross-examine the City of Paducah's or McCracken County's witnesses. 6. An offer to the Board Members to question the City of Paducah's or McCracken County's witnesses. 7. Upon the completion of the City of Paducah or McCracken County's sworn witness testimony and/or presentation of evidence, an offer to the Appellant to present rebuttal sworn witness testimony and/or evidence. 8. An offer to the City of Paducah or McCracken County to cross-examine Appellant's rebuttal witnesses. 9. An offer to the Board Members to question Appellant's rebuttal witnesses. 10. Board may deliberate in executive session. 11. Board votes in open session. 6. If Appellant is an organization or corporation, it must be represented by counsel at its own expense, so as to avoid the unauthorized practice of law. If Appellant is an individual, Appellant may be represented by counsel, at his/her own expense. 7. The City or County shall be represented by an attorney. Each applicable governmental agency shall be responsible for its own attorney's fees. The Board may be represented by an attorney if it so chooses. The Board's legal counsel may attend the Board's deliberations in executive session. The County Attorney shall represent the Board when the Board considers City appeals. The City's Attorney shall represent the Board when the Board considers County appeals. The applicable governmental agency shall be responsible for all attorneys' fees associated with representation of the Board. 8. Once the parties have rested their respective cases, the Board shall determine whether Appellant proved by clear and convincing evidence that the property was inappropriately classified. For purposes of this hearing, an Appellant meets the burden of proof by "clear and convincing evidence" by presenting evidence substantially more persuasive than a preponderance of evidence, but not beyond a reasonable doubt. If Appellant presents sufficient evidence to indicate the property was inappropriately classified, the Board shall provide relief to Appellant by majority vote, including, but not limited to, a refund of all or a portion of the parcel fee paid during the applicable tax year. 9. If the issue presented is whether the real property is "occupiable" as that term is defined in the applicable Ordinances, the Board shall consider the following evidence in making its determination: 1. For Residential Units (including Residential Storage Structures): a. Whether the building or space was designed and/or utilized for occupancy for residential purposes; b. Whether the physical condition of the building or space is suitable for human occupation or the storage of chattel for residential purposes; c. Whether utility connections are present, not necessarily connected or active; d. Whether the building or space is currently being marketed for sale for occupancy; and e. Whether the building or space can be physically accessed. 2. For Commercial Units: a. Whether the building or space was designed and/or utilized for manufacture, sale, lease, or rental of goods or services to the public; b. Whether the building or space is suitable for human use or storage of chattel; c. Whether utility connections are present, not necessarily connected or active; d. Whether the building or space is currently being marketed for sale for occupancy or storage for commercial purposes; and e. Whether the building or space can be physically accessed. 3. For Public Use Units: a. Whether the building or space was designed and/or utilized for purposes of conducting the regular business of a government, a police department, or a fire department; b. Whether the building or space was designed and/or utilized for religious activities and/or worship; c. Whether the building or space was designed and/or utilized for the carrying out of a charitable purpose as determined by Section 51 of the Internal Revenue Code; d. Whether the building or space was designed and/or utilized for the administration of education or the extracurricular activities thereof; e. Whether the building or space is suitable for human use or storage of chattel; f Whether utility connections are present, not necessarily connected or active; g. Whether the building or space is currently being marketed for sale for occupancy or storage for commercial purposes; and h. Whether the building or space can be physically accessed. 10. Every Final Order of the Board shall be reduced to writing, which shall include the date the Order was issued and the findings and conclusions reached. If the amount of the assessment is changed or the assessment is vacated in its entirety, the Order shall direct the City or County to issue a refund to Appellant. 11. The City or County shall issue all refunds within sixty (60) days of the date of the Final Order. Adopted by the 911 Parcel Fee Appeals Board on 2026. James R. Coltharp, Jr. 911 Parcel Fee Appeals Board Chairman