HomeMy WebLinkAbout02/05/08384
FEBRUARY 5, 2008
At a Regular Meeting of the Board of Commissioners, held on Tuesday, February 5,
2008, at 5:30 p.m., Mayor Paxton presided, and upon call of the roll by the City Clerk,
the following answered to their names: Commissioners Coleman, Kaler, Smith, Watkins
and Mayor Paxton (5).
WORKSHOP
REVISE BUSINESS LICENSE TAX FROM GROSS RECEIPTS TO NET
PROFITS
At a previous commission meeting, Commissioner Watkins requested to change the
current business license tax system from gross receipts to net profit. City Manager
Zumwalt explained in the state of Kentucky there are two systems: Gross receipts and net
profit. Currently there are 32 cities that operate their tax license system under gross
receipts. The City's system brings in approximately $4M of revenue annually. He stated
that the Finance Department recommends no change to the current system. However, he
did present the following alternatives:
Alternative #I -no change
Alternative #2 -Change Immediately to Net Profits -Rate ????
Safe --.04
Alternative --.02 (Cut operating budget by $2M)
Alternative #3 -Hire a Consultant to Do a Year Study
• Collect Year's Data From New Requirement for Businesses to Submit
Federal Tax Form
• Identify More Clearly Who Are Winners/Losers
• Predict Unintended Consequences
• Recommended Breakeven Rate
• Maybe Recommend Changes to Current Gross Receipts System
Mayor Paxton called for public comments.
Carl Adams, representing the Paducah Board of Realtors, reported that the Realtors'
Board of Directors is 100% in favor of changing to the net profit system.
Jenny Collier, West Towne Pharmacy, stated she is in support of the change to net profit.
City Manager Zumwalt offered that should the City stay with gross receipts the
Commission may want to look at changing some of the classifications.
Scott Bridges, business owner, is in favor of study of modernizing tax.
Sheila Puckett, business owner, would like to see the feasibility of a graduated tax
percentage on income.
After much discussion the Commission did not come to a consensus to change the tax
license system to net profit but did agree that the current system does need to be studied
and possibly revised. The City Manager suggested the Board direct staff to find 2 to 3
consultants that the Commission could interview and pick one to complete a study of
gross receipts vs. net profit and perhaps prepare changes to the present gross receipts
system. Mayor Paxton suggested that a couple of the commissioners might want to sit in
with the staff for those interviews and then come back to the full commission with a
recommendation. Commissioner Kaler asked that CPAs from local accounting firms be
considered as the consultants for this project.
PRESENTATION
FIREFIGHTER'S BOOT DRIVE FOR MUSCULAR DYSTROPHY
Renee Goodman, Director of the Local Muscular Dystrophy Association, presented a
plaque of appreciation to Fire Chief, Redell Benton, IAFF Union President, Barry Carter,
and the other firefighters who participated in the annual boot drive. Collected donations
totaled $4,231.00.
Mayor Paxton left the meeting.
385
FEBRUARY 5, 2008
MUNICIPAL ORDERS
APPROVE APPLICATION FOR KENTUCKY TRANSPORTATION
ENHANCEMENT FUNDS FOR THE GREENWAY TRAIL
Commissioner Coleman offered motion, seconded by Commissioner Kaler, that a
Municipal Order entitled, "A MUNCIPAL ORDER AUTHORIZING THE
APPLICATION TO THE KENTUCKY TRANSPORTATION CABINET FOR
REIMBURSEMENT FUNDS IN THE AMOUNT OF $500,000 FOR A 2008
KENTUCKY TRANSPORTATION ENHANCEMENT PROGRAM FOR THE
GREENWAY TRAILS PROJECT," be adopted.
Adopted on call of the roll, yeas, Mayor ProTem Coleman, Commissioners Kaler, Smith,
and Watkins (4). M.O.#1365; BK 7; PG
Martha Emmons, representing local walkers, runners and bicyclers, thanked the Parks
Services Department for their hard work. She and the people she represents are in
support of this application and are anxious to see the Greenway Trail completed.
APPROVE ENGINEERING DESIGN MOU WITH JJR, LLC FOR
RIVERFRONT DEVELOPMENT PHASE I -TRANSIENT BOAT LANDING
DOCK PROJECT
Commissioner Kaler offered motion, seconded by Commissioner Coleman, that a
Municipal Order entitled, "A MUNCIPAL ORDER AUTHORIZING THE MAYOR TO
EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF
PADUCAH AND JJR, LLC FOR THE RIVERFRONT DEVELOPMENT PHASE I —
TRANSIENT BOAT LANDING DOCK PROJECT," be adopted.
Adopted on call of the roll, yeas, Mayor ProTem Coleman, Commissioners Kaler, Smith
and Watkins (4). M.O.#1366; BK 7; PG
ORDINANCES — ADOPTION
APPROVE MEMORANDUM OF UNDERSTANDING FOR HOOPER'S
Commissioner Smith offered motion, seconded by Commissioner Watkins, that the Board
of Commissioners adopt an ordinance entitled, "AN ORDINANCE OF THE CITY OF
PADUCAH, KENTUCKY, APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF PADUCAH, KENTUCKY,
FREEDOM CAPITAL, INC., (BUYER) AND DEAN E. CHERRY AND L. CRAIG
SIMS (GUARANTORS), WITH RESPECT TO A PRIVATE PROJECT AND
AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS RELATED TO
SUCH MEMORANDUM OF UNDERSTANDING." This ordinance is summarized as
follows: The City hereby approves the Memorandum of Understanding between the
City, Freedom Capital, Inc., Dean E. Cherry and L. Craig Sims to defray the costs of the
acquisition, renovation, redevelopment, installation, and equipping of the property being
located in downtown Paducah; authorizes an Advertising Grant in the amount of $5,000
through Paducah Main Street; authorizes a Purchase Money Loan to Buyer in the amount
of $320,000 and authorizes the Mayor to execute said Memorandum of Understanding
and all other documents necessary to complete the transaction.
Adopted on call of the roll, yeas, Mayor ProTem Coleman, Commissioners Kaler, Smith
and Watkins. (4) ORD.#2008-2-7391; BK 31; PG
APPROVE CONTRACT WITH FINANCIAL ANALYST FOR THE TAX
INCREMENT FINANCING DISTRICT
Commissioner Watkins offered motion, seconded by Commissioner Smith, that the Board
of Commissioners adopt an ordinance entitled, "AN ORDINANCE AUTHORIZING
AND DIRECTING THE MAYOR TO EXECUTE AN ENGINEERING SERVICE
CONTRACT WITH C. H. JOHNSON CONSULTING, INC. FOR PROFESSIONAL
SERVICES ASSOCIATED WITH THE TAX INCREMENT FINANCING DISTRICT
IMPLEMENTATION". This ordinance is summarized as follows: That the Mayor of
the City of Paducah is hereby authorized and directed to execute an Engagement Letter
with C. H. Johnson Consulting, Inc., in the amount of $56,500.00 for professional
services associated with the Tax Increment Financing District Implementation and
FEBRUARY 5, 2008
completion of Task 1 and Task 2 as outlined in the Engagement Letter dated December 6,
2007.
Adopted on call of the roll, yeas, Mayor ProTem Coleman, Commissioners Kaler, Smith
and Watkins (4). ORD.#2008-2-7392; BK 7; PG
CITY MANAGER REPORT
• Calendar Items
• Commission meeting for February 12th will be cancelled due to the Mayor, few
commissioners and several department heads attending the Chamber of
Commerce's, West Kentucky Thank You Night event in Frankfort, Kentucky.
• Discussion of Personnel Actions — no discussion
• Steve Doolittle — Hotel Proposals for Downtown
Originally the City had advertised for proposals to be received in January. Due to
the holidays, time was extended to February 4. The City has received 3 proposals
of interests.
• Requested a brief executive session for discussion of hotel.
EXECUTIVE SESSION
Commissioner Coleman offered motion, seconded by Commissioner Kaler, that the
Board go into closed session for discussion of matters pertaining to the following topics:
A specific proposal by a business entity where public discussion of the subject matter
would jeopardize the location, retention, expansion or upgrading of a business entity, as
permitted by KRS 61.810(1)(g).
Adopted on call of the roll, yeas, Mayor ProTem Coleman, Commissioners Kaler, Smith
and Watkins (4).
Upon motion meeting adjourned.
ADOPTED: February 26 , 2008
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City Clerk