The Middlesboro City Council met for their regular monthly meeting on Tuesday night.
The first readings of a consideration of an ordinance of the city of Middlesboro, establishing the ad valorem tax levy on personal property for year 2016 and consideration of an ordinance of the city of Middlesboro, Kentucky, establishing the ad valorem tax levy for year 2015 were approved. According to Middlesboro Mayor Bill Kelley, the tax levy rates are staying the same as they have for the last several years.
The overall tax on personal property is 23.20 cents on each $100 of assessed valuation and the entire amount goes into the general fund. The overall tax on real property is 6.90 cents on every $100 in value of real property subject to taxation by the city and the entire amount goes into the general fund. There has been an imposed bank franchise and local tax at a rate of .025 percent and said money is to be collected and paid in its entirety into the general fund. A discount of two percent will be allowed if the total bill is paid by the end December, 2015. Bills are net in January 2016 and a penalty of 10 percent and interest of one percent per month shall be attached to the the collections of all taxes levied and not paid before 2016.
Finance Chairperson Bo Green was not present at Tuesday night’s meeting, so council member Blake Bowling gave the finance report from last weeks finance meeting. Bowling was present at the meeting and had a copy of Green’s notes.
The report stated the audit that was presented at the subcommittee meeting was deemed as “materially correct”.
Council member Lucas Carter inquired about what type of safety net the city had in the bank. The mayor said the city had an estimated $575,000 worth of CDs in the bank as a safety net. He also pointed out there was in previous years more secured funding in the bank but previous leaders had used that money to pay for retirement and health insurance. The mayor stressed there was no reason to believe there had been any type of breach of compliance with the former leaderships action, there simply was not a way to put the money back into the safety net as he believes the leadership had planned.
In regards to the current safety net, the mayor said in order to be in compliance, before he could access those funds, he would have to bring it in front of the council. He also said he did not foresee any type of scenario where the city would need to access those funds.
The subject of the city possibly gaining control of the Middlesboro Country Club was once again brought up at the meeting. The mayor said there would be a special called board meeting next week in regards to the country club. As of press time, the date of the meeting had not been released.
Reach Reina P. Cunningham at 606-302-9091 or on Twitter @ReinaDailyNews.