The Sturgis City Council has decided not to sell their delinquent taxes to an outside firm. It was the “general consensus” Monday, said Mayor Tommy Holt, not to take action to sell the bad taxes, because the resulting liens against properties could make property development in the city much harder.
The city sought references on a tax-buying company, Taxease, and found many were pleased with the agency. Taxease will purchase delinquent tax balances from the year 2000 to present at an amount of $15,000 or more owed, and collect these taxes at no cost to the city. It was no surprise, however, that cost to taxpayers would increase by some 70 percent per balance, once the bad taxes were sold off.
City Clerk Cindy Carr reported that in 2009, $5,000 in bad taxes was paid back to the city. While no concrete numbers are available for 2010, Carr says the city has seen a “good response” from taxpayers who owe after the first wave of letters were sent out with tax bills this year. In the delinquency notice, the city did threaten to sell the taxes, but no action was confirmed in the March regular meeting.
The council did approve an increase on water rates Monday. Mayor Holt said the city had not taken an increase in water since 2007, when USDA Rural Water recommended a 16 percent increase. The city took a ten percent increase that year.
The approved increase, at 12 percent, puts more burden on larger users, says Holt. Holt stated that the increase was necessary to offset next year’s budget expenses.
“Without the increase, it will be very difficult putting a budget together,” said Holt. “I don’t know anywhere else to cut (the budget) unless we cut employees.” In other matters:
-- The council approved the agreement with Global Express to offer to collect Kentucky Utility payments at the city office. This is a service to citizens, says Holt. Citizens can pay their KU bill at the same time as their city utility bill for no fee. The city earns $.35 per transaction and Global Express provides the equipment and training for the city employees.
-- The mayor and council are considering refinancing all long-term debt. Mayor Holt estimates the city would “free up” approximately $35-40,000 for the general budget. “That would go a long way to work on infrastructure,” agreed councilwoman Fran Woodring.
-- Sean Sheffer reminded the council of the upcoming Planning and Zoning Commission hearing for a zone change at 902 and 908 N. Main Street, Sturgis, on Monday, March 15 at 7 p.m. at the county courthouse. The hearing is open to the public and all property neighbors and interested parties are welcome to present their concerns.
-- Sheffer also gave the council an update on Levee recertification. Sheffer said to expect to see work at the levee all summer long. The cost for the current recertification and repair for Uniontown and Sturgis levees is being sponsored by the County Fiscal Court. The court, on behalf of the cities, has taken a line of credit for the estimated $3 million project, but both cities will be on their own when recertification occurs again in ten years. Sheffer said the city must plan ahead for the approximate $250,000 cost every ten years.
-- City Police Chief John Shofner reported that three more properties have been cleaned up, but the process is “slow.” Two properties on Pike Street and one on Washington were recently cleaned up and papers were served to one resident on Sixth Street. Shofner continues to monitor nuisance properties, as per the council’s direction.
