Beech Tree News Network

 

Morgantown City Council held their monthly meeting on Thursday night.  The council voted 5-0 to approve the second reading of the Insurance Premium Tax, was provided updates on Kentucky Copper, and hear from Meredith Robinson concerning a grant opportunity to develop a Kentucky Build Ready Certified Site.

The council unanimously approved the second reading of an ordinance that would set across-the-board tax rates on insurance premiums. Council member Allen Meredith made the motion to approve the proposed ordinance and council member Russell Givens provided the second.  The motion passed unanimously on a 5-0 vote with council members Sharon Johnson, Ronald Givens, and Dionne Merritt all supporting the measure.  Gary Southerland was absent from the meeting.

The insurance premium tax (2016-01) has an 8 percent tax across five categories: casualty, automobile, inland marine, health and life insurance.  Certain restrictions apply to the taxation of health and life insurance policies, according to state law. Individual health plans and high-deductible health plans cannot be taxed, according to city officials. The tax will take effect in July of 2016.

The tax is expected to generate between $200,000 to $250,000 annually. According to Mayor Billy Phelps the additional money is needed to cover anticipated expenses with Kentucky Copper and provide diversity in the City’s revenue. In September of 2015 the council approved (6-0 vote) an increase in property taxes also to diversify the City’s revenue.

"Kentucky Copper plans to auction off the contents of the building around April 11th.  The City will assume the monthly payment of somewhere between $22,000-$25,000 starting in May or June of this year,” said Mayor Phelps.

The outstanding balance on the Kentucky Copper building is $1.35 million with approximately $437,000 being a TVA loan and $914,000 with Morgantown Bank & Trust. Hopefully, the building can be sold/rented relieving the City of the debt.

Meredith Robinson, of the Bowling Green Area Chamber, shared details of applying for InvestPrep, a matching grant program offered by the Tennessee Valley Authority (TVA) for 22 acres at the Industrial Park South.  The City is applying for the grant, which is a 70/30 match, to develop a Kentucky Build Ready Certified Site including a graded pad (50,000 square feet) plus a 150-foot gravel drive. The estimated total cost of the project is $165,400, with $115,780 covered by TVA and $49,620 local match.

CLICK HERE FOR COMPLETE PRESENTATION: KY Certified Build Ready.pdf

In other business the Council heard from auditors Gilbert & Gilbert, interim Police Chief Paul Burden, Morgantown Fire Chief Dustin Embry, and City Administrator Jerrod Barks. Stay connected to Beech Tree News for a follow-up story on these topics discussed at last night's Morgantown City Council meeting.