By Mark Hansel
NKyTribune managing editor
The Boone County Fiscal Court voted Tuesday to direct its staff to develop an ordinance that will fund upgrades to the its portion of a regional communications system through the implementation of a dwelling fee.
Binders provide a “heavy duty view” of the complex bids submitted to upgrade the Boone County communications system in Boone County (photos by Mark Hansel).
The fee, which is projected to be about $90 per year, will also fully fund the county’s Public Safety Communications Center, which provides 911 services.
The Fiscal Court approved the motion to draft the ordinance by a 3-1 vote.
Boone County Judge-executive Gary Moore and Commissioners Charles Kenner and Charlie Walton voted in favor of the ordinance. Commissioner Cathy Flaig voted against it.
Flaig had suggested a dwelling fee to fund the upgrades at a previous meeting, but said after Tuesday’s meeting she felt the county should have explored other options.
The annual cost to fund the PSCC and pay for the system upgrades is estimated at $5 million. The cost for just the system upgrades is projects at $800,000 per year for 10 years and after that time, the dwelling fee is expected to be reduced by $15 each year.
A dwelling unit is identified as a physical address and includes residential, commercial, multi-family and industrial facilities.
Currently, the PSCC is funded using a landline fee, but as cell phone use has increased and the number of landlines diminished, the county has had to increasingly supplement that cost. That cost has now risen to approximately $2 million per year.
The landline fee, which is $33.12 per year, would be eliminated as part of the new funding plan, which is expected to go into effect at the beginning of the new fiscal year on July 1.
The net cost to residents and business owners per dwelling unit, when the new plan goes into effect, is estimated at $56.88 per year, which would be reduced to $41.88, when the portion of the fee to fund communications systems upgrades sunsets in 10 years.
Bernie Kunkel of Union was among those who spoke at Tuesday’s Fiscal Court meeting.
Bids for the upgrades are still being evaluated so the final fee could vary slightly, but county officials are confident that would not be more than a few cents either way.
In September, the county met with first responders and elected officials from throughout the region and determined there was an urgent need for communications systems upgrades.
Over the last several months the county has explored several options to pay for the upgrades to the communications system and develop a permanent funding source for the PSCC.
The most controversial of these was a revenue restructuring which would include insurance premium tax rate of up to 8 percent. That option would have funded the upgrades and potentially provided additional revenue to be placed in the capital fund for road and infrastructure needs.
It would also have led to reductions in the real property tax rate and the tangible property tax rate for businesses and the elimination the county motor vehicle tax and the 911 landline fee.
The inclusion of the revenue restructuring proposal as a potential option sparked a grassroots campaign in the community to oppose the funding and contributed to a full house at Tuesday’s Fiscal Court meeting.
As recently as last week Moore indicated the county was still considering a blended option that might have included the implementation of a reduced insurance premium tax rate.
Public comment was permitted during the discussion of options, but when the insurance premium tax rate was eliminated as a source, opposition to the funding plan was reduced.
Moore said public input was an important factor in determining which funding option would be used.
“This is evidence that the process works. This fiscal court has checks and balances and I’m sure the people like that,” Moore said. “We began this process six months ago with putting some options out there and now we have an option that is going to move forward. I don’t know of any other local government that would have gone to the extent that we have to really throw ideas out, listen to the community and come back with a final recommendation.”
The Preliminary Financing Policy Set by Fiscal Court:
At the March 7, 2017 meeting of the Boone County Fiscal Court, the county’s elected body affirmed its support for a regional communications system to support the need of first responders and correct significant deficiencies in the current antiquated system.
Commissioner Cathy Flaig, left, voted against the introduction of an ordinance to use a dwelling fee to fund upgrades to the Boone County communications system. Commissioners Charles Kenner (center) and Charlie Walton joined Judge-executive Gary Moore voted in favor of the proposed ordinance.
Although the county has worked hard to extend the life of the current system, an independent consultant hired at the request of the county’s first responders conducted a comprehensive that clearly demonstrated that the UHF/VHF technology currently being utilized is at end of life, presents significant gaps in coverage and does not allow firefighters and police officers to talk directly to each other.
The three Northern Kentucky counties (Boone, Campbell and Kenton) each had similar reports and moved forward to implement a regional solution.
This is a major initiative which is beyond the ability of the county’s budget to absorb.
A range of options were developed by county staff and presented to the Fiscal Court utilizing the very limited options available to local governments including: property taxes, payroll taxes, insurance premium taxes and direct fees for services.
Beginning in December, 2016, the county has been publicly discussing these options at open meetings, attending community group meetings and receiving input from the community to refine the options based the comments.
A majority of the Court approved a motion endorsing a 911 dwelling unit fee to fund the emergency communications system and the operation of the Public Safety Communications Center and to eliminate all other options. The Court directed staff to prepare a draft ordinance consistent with this direction.
Additional information about public safety communications funding is available on the county website here . It also includes a link to key facts and information about the upgrades.
A first reading of the ordinance is expected at the March 21 meeting with a second reading and a vote in favor of the proposal anticipated April 18.
Contact Mark Hansel at mark.hansel@nkytrib.com
Judge Executive Gary Moore is fond of always telling everyone what a great conservative movement he and his Fiscal Court represent. But one knows from experience and history that the reason he can say that is because an alert citizenry is always stopping Gary’s tax and spend schemes. Consider how Gary Moore lobbied hard for a parks tax, a code enforcement board to attack our property rights, his ridiculous clean needle exchange, his ideas to lock up Western Boone County from future development, his cheerleading for an insurance premium tax just last month, and now his $90 dwelling “fee” on all residences in Boone County. Yes indeed, Gary Moore and his Fiscal Court can only be called conservative because our taxpayers are constantly shooting him down.
He put the parks tax on the ballot to let the public decide. What is wrong with that?