PRESTONSBURG – The Floyd County Fiscal Court has been working diligently to circumvent the revenue shortage that is inevitable due to the decrease of Coal and Mineral Severance Funds Floyd County has relied on for years. The Fiscal Court held a special meeting on Monday to serve as the second reading for two ordinances it hopes will help generate a portion of the funds needed to balance the budget for the upcoming year.
Ordinance number 16-003 states the Floyd County Fiscal Court has enacted an ordinance establishing a recreation, tourist and convention commission, in that KRS. 91 A.390 states that a county may pass a Special Transient Room Tax not to exceed three percent. The ordinance 16-003 was established to promote the growth of tourism and the attraction of visitors to Floyd County.
“Ordinance number 16-003 states that all money must be used on parks and tourism-related services,” Floyd County District One Magistrate John Goble. “Currently, we pay salary and upkeep of county parks out of the general fund. We expect the 3 percent tax to generate approximately $150,000 a year that we are currently using out of the general fund. That money can remain in the general fund to be used on other things.”
Ordinance number 16-004 was also on the agenda and states due to the decreased revenue from Coal and Mineral Severance Taxes, Floyd County finds it necessary to implement an insurance premium on all insurance companies who wish to conduct business in Floyd County. The ordinance establishes a license fee or tax upon insurance companies at the rate of six percent of the first year premiums collected for life insurance and six percent of the premiums collected for all other types of insurance. Ordinance number 16-004 is expected to generate revenue in excess of $500,000 for the county. The first payment will be due on October 1.
Matt Moore from the Kentucky Highway Department addressed the court with recommendations the state hopes to accomplish in 2017. He advised the court that additional recommendations for improvements on secondary roads can be submitted to the Kentucky Highway Department. Ronnie Akers, District Four Magistrate, asked for an update on when work will be completed on Kentucky Route 680. No update was available.
Andrea Saddler is a reporter for The Floyd County Times. She can be reached at (606) 886-8506.