Fiscal Court to vote Thursday on lowering insurance tax

Feb. 17—Daviess Fiscal Court has a busy agenda on Thursday, starting with a 5 p.m. public hearing on the county's request for up to $200,000 in Coronavirus Response Utility Assistance.

Also on the agenda is a vote on lowering the county's tax rate on insurance premiums for property outside the city limits of Owensboro and Whitesville from 8.9% to 7.2%, effective July 1.

And Fiscal Court members will also consider awarding bids for the construction of the planned Horse Fork Creek Park Inclusive Accessible Playground.

Because of the coronavirus pandemic, people will not be allowed to attend the meeting and public hearing.

Both will be available live on Daviess County Fiscal Court's Facebook page.

Last month, Gov. Andy Beshear announced that up to $38 million is available to local governments to help Kentuckians with overdue utility bills.

But none of that money is available for Owensboro.

The city already got its share of the money through its Community Development Block Grant.

Judge-Executive Al Mattingly said if the county gets its $200,000, it can only be used to pay overdue utility bills outside the city limits of Owensboro.

"It'll take a while to get the money," he said. "It won't be available immediately."

Mattingly said Daviess County was among the first to apply for the funds though and that should help.

About 400 local governments are eligible for the funds, he said.

—The county raised its tax on insurance premiums in 2010 from 4.9% to 8.9% to pay off $20 million worth of bonds that were issued to pay its share of the cost of the Owensboro Convention Center.

Fiscal Court members promised to eliminate that part of the tax once the debt was paid in 2030.

In 2014, Fiscal Court refinanced the bonds to save more than $2 million and retire the debt six years early — in 2024.

And now, it is preparing to retire the debt even earlier — next year.

Mattingly said he expects the rate to drop back to 4.9% next year when the bonds are paid off.

"If we leave the rate as it is," he said, "we'll over-collect this year."

Health insurance was exempted from the tax.

The city also increased its insurance premium tax rate from 4% to 8% at the same time.

The county's decision to pay off its debt early does not affect property inside the city limits of Owensboro and Whitesville.

Owensboro residents will be paying the increased rate for another two decades.

City Manager Nate Pagan said the city sold 30-year bonds, rather than 20-year bonds, in 2012 and 2013.

That means part of them will be paid off in June of 2042 and the rest in May of 2043.

The original total principal of the two bonds was $57.1 million.

—The county received a $150,000 grant from the federal Land & Water Conservation Fund for the new handicapped-accessible playground at Horse Fork Creek Park.

And Mattingly said it should be ready in time for the Memorial Day weekend.

Ross Leigh, the county's parks director, said the new park is the first in the county parks system to make everything accessible to everyone.

It will include a rubber surfaced playground, like the one in Smothers Park downtown.

There will be musical instruments, Leigh said, a wheelchair-accessible merry-go-round and swing.

"Chairs can roll onto the swing and sway back and forth," Leigh said.

A large shade umbrella will cover the playground to keep it cooler on hot days.

An ADA-compliant restroom building is also scheduled for the park, Leigh said.

Mattingly said that should also be finished by Memorial Day as well.

Keith Lawrence, 270-691-7301, [email protected]

270-691-7301

[email protected]

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