News from January 24, 2008 issue

Local News
The Crittenden Press (PDF)
(Selected pages from Sections A & B)
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Two young men earn Eagle Scout badge
Josh Urbanowski and Cody Dunham are Crittenden County's latest Eagle Scouts.
The two are among about 1.7 million young men who have achieved the highest rank one can achieve in the Boy Scouts of America, which started in 1911.
Urbanowski, 17, and Dunham, 16, are both juniors at Crittenden County High School where they excel as students and participate in a variety of extra-curricular activities. Dunham is a member of the basketball team and Urbanowski plays baseball and football.
Requirements for Eagle Scout include a number of merit badges, service and leadership. Each Eagle Scout candidate is required to plan, fund and complete an extensive community service project. Both of the new Eagle Scouts chose something to help improve the Marion-Crittenden County Park as their project.
"I had lots of help," said Urbanowski, whose project included placement of four swings at the park complex. "You learn a whole lot about team work."
Dunham's project included installation of benches along the park walking trail. He, too, said Troop 30 members were very important in the completion of his project.
"I learned to stick with something even during the tough times," Dunham said, a trait that he finds handy in various other aspects of life.
Urbanowski has been involved in Scouting since second grade. Dunham has been involved with Scouting for about 10 years, too.
Even though the two have achieved the group's highest award, they say there are still some achievements in Scouting that will keep them interested. Additional recognition can be earned through Eagle Palms, Dunham said.
"I think I am going to stay in it," he said.
Urbanowski will also stick with Scouting because it's been such an important part of his life to this point.

Magistrates propose insurance tax
Citing a projected shortfall in the 2008-09 budget, Crittenden County magistrates approved the first reading of a new tax ordinance last week during a special meeting.
Members of Crittenden Fiscal Court voted 4-2 to impose a new tax on county residents. Final passage of the plan will require a public hearing and another favorable vote during a later court meeting.
The proposed new tax will be a four-percent surcharge on private and commercial insurance premiums, but will actually be assessed at 4.6 percent in order to cover the Kentucky Department of Insurance's administrative fee for collecting the tax.
Based on the model ordinance approved by magistrates at Friday's meeting, the tax will be levied on all types of insurance, except workers' compensation and group health insurance of state employees. All other categories of insurance premiums will be affected by the new tax, including life, casualty, health, automobile, boat, farm, fire and allied perils. It will include property, farm and homeowner policies. The life insurance tax is based on four percent of the policy's first-year premium. All other taxes will be calculated from the actual premium amount collected in a given year.
It's unclear if individual health insurance premiums would be subject to the tax. Although Kentucky Revised Statute 91A.080 prohibits license fees or taxes on premiums received on health insurance policies issued to individuals through Kentucky Access insurance, Judge-Executive Fred Brown said many counties and cities across the state do indeed charge an insurance tax on such policies.
Brown said this week that after some reflection on the matter, he would suggest that the county exclude health insurance from the tax. He also suggested that magistrates might consider a lower tax rate than the original proposal of four percent.
The tax will be administered by the State of Kentucky, which also collects its own 1.5-percent tax on many insurance polices. Additionally, the Department of Insurance charges a fee that amounts to 15 percent of the municipality rate for the money it collects for counties or cities. Once the tax is collected, the state will send the money to Crittenden County for use in its general fund. If approved, fees on premiums would be assessed beginning July 1 and Crittenden would get its first payment in October.
The City of Marion already has a four-percent insurance license fee that was first established in 1985. The rate charged is actually 4.6 percent because of the administrative fee tacked on by the state. The city receives only the four percent levy. Anyone living in the city and currently paying that tax will not be subject to the newly proposed county surcharge. However, city leaders are currently considering a hike that is double its current insurance tax rate.
There was virtually no public opposition to the tax plan proposed during last week's fiscal court meeting. Two magistrates, Dan Wood and Greg West, voted against the measure. Magistrates Percy Cook, Curt Buntin, Helen McConnell and Glenn Underdown supported the ordinance.
Judge Brown told magistrates that information he received from the state insurance commission indicates that a four-percent tax would generate about $100,000 to $125,000 of revenue per year for the county.
There is some indication that a four-percent tax would generate even more than that. The City of Marion's four-percent insurance tax rate generates roughly $200,000 annually. Marion has about 3,200 residents, but there are 5,900 people living in rural areas the county. Population figures suggest a similar tax on county residents would generate more revenue than it does in the lesser populated city, even after accounting for the greatly higher percentage of businesses located in the corporate city limits.
Currently, 344 Kentucky cities and 33 counties levy an insurance premium tax on their residents. Rates vary from three to 15 percent while some tax at a flat rate.
Brown told magistrates considering the plan last week that an insurance tax wasn't the only option. However, he urged them to understand that something has to be done in order for the county to make ends meet in the coming budget cycle. Brown said the county could drastically cut services and contributions to local agencies (see chart at right), or it could consider raising property taxes.
If the county starts looking to trim excess from its budget, Brown said planners would find remarkably little to cut.
“I am not advocating we do this,” Brown said, pointing to the idea of implementing a new insurance tax. “I just want to share with you the things we'll have to look at cutting if we don't do something. Most things in our budget, we can't do anything about. Most are expenses set by law and mandated that we pay.”
Brown had highlighted several items in the county's general fund and LGEA (Local Government Economic Assistance) fund which are subject to cuts if the county doesn't find another source of revenue. Among those were support of the Crittenden County Economic Development Corporation, volunteer fire departments, Fohs Hall Inc., a free food program, the Pennyrile Narcotics Task Force, Marion-Crittenden County Park, Soil Conservation District, Fohs Hall Community Arts Foundation, Marion Main Street, the local airport and official travel for elected officials.
“In my opinion right now is a bad time,” Magistrate West said. “It just seems like people are having a hard time getting by right now.”
Wood, the only other magistrate to oppose the idea, said, “I talked to several insurance providers and they don't think this is a very fair tax, if there is such a thing as a fair tax. I just wish we could look as something different.”
Judge Brown said that if the tax is approved, he plans to propose a health insurance program for non-elected county employees starting in January 2009. Some of the money generated from the new tax would help fund that plan, estimated to cost about $40,000. Right now, county employees do not have health insurance benefits.
“That's why I am talking about this," Brown said in his office following the meeting.
Magistrates discussed the fact that property taxes have not risen much in Crittenden County over the past 15 or 20 years. In the mid-1990s, the county's tax rate was 11.3 cents per $100 of assessed property value. Today, it's 12 cents. However, Magistrate Buntin noted that property taxes can be qualified deductions on personal and corporate income taxes, which helps ease the burden.
“We've seen the figures every year,” Buntin said. “I don't think we can continue without doing something. We've gotten to the point that we don't have any money. I hate to be the bearer of bad news, but I think if we start looking at things to cut, we'll just have to cut it all.”
Buntin was referring to all of the cuts suggested by Judge Brown, which would equal about $54,000 annually. However, that would mean no county funds for fire departments or various other economic development and cultural services. It would also likely mean a serious cut to sheriff's department funding for deputies.
Raising property taxes four percent, the maximum allowed without being subject to voter recall, would generate about $16,000 to $20,000. It appears that the county will need more than that to balance its budget starting July 1.
Now that the insurance tax ordinance has been introduced and had its first reading, it will become law if approved during a followup vote in February. The issue will be discussed and a public hearing held on the matter at the fiscal court's next meeting, Feb. 19 at the courthouse. The meeting starts at 9 a.m.
The City of Marion could approve its proposed eight-percent premium tax at its next meeting slated for 6 p.m., Feb. 18.

Insurance tax
in nearby areas
Trigg County 6.0%
Hopkins County 10.0%
Daviess County 4.9%
Dawson Springs 8.0%
Eddyville 10.0%
Fredonia 6.0%
Marion* 4.0%
Morganfield 7.0%
Princeton 5.0%
Providence 7.5%
Sturgis 12.0%
*Proposed increase to 8.0%.

Where to cut costs?
Allocations from Crittenden Fiscal Court that could be on the chopping block for next year.

LGEA Fund
Sheriff Deputy Salaries $36,000
Economic Development $10,000
Fire Departments $6,500
Rescue Squad $1,500
Tipline $400
Narcotics Task Force $2,000
Chamber of Commerce $400
Soil Conservation $12,200
Community Food Program $2,400
City-County Park $12,500
Community Arts Foundation $400
Fohs Hall $400
Marion-CC Airport $4,000
Park Contribution $12,500
General Fund
Official Travel $4,500
Magistrate Travel $2,500
Emergency Management $1,500
Judge-Executive Association $750
Magistrates Association $700