Mayor proposes budget that would reduce big surplus by spending to fix sewer lines and build more sidewalks

By Anna McAndrew and Lauren McCally
University of Kentucky School of Journalism and Media
               “Our surplus right now is enormous,” Mayor Grayson Vandegrift said Monday evening as he offered the City Council a 2020-21 budget that would reduce the surplus by fixing sewer lines and building new sidewalks.

               Vandegrift said the surplus is “three times bigger than the average” of a U.S. city in terms of months of revenue – a year’s worth rather than four months’ worth. Spending on the infrastructure projects, mainly sewers, will “bring the surplus down to two times bigger than the average, which means eight months’ worth of money instead of one year,” he said. 

             The current surplus is about $1.1 million. The projected surplus is about $900,000 mainly because about $150,000 would be spent fixing sewer lines on the east side of town and $75,000 is budgeted for sidewalks -- $25,000 of which would go to cost-sharing that the city is already doing with property owners.

             The rest would build a sidewalk on the Midway University side of Stephens Street to the entrance to the Homeplace at Midway. Some of the $75,000 is contingent upon a grant. There are so many grants available for sidewalks, Vandegrift said, “I don’t think we should construct any new sidewalks without one.”

              The city has amassed a surplus largely on occupational-tax income from the Lakeshore Learning Materials distribution center in Midway Station and other business expansions.

              In the current fiscal year, the tax was budgeted to generate $650,000, but the mayor said the city is on track to collect $832,000. His proposed budget for next year estimates $825,000. “Most of our revenue numbers are done conservatively,” he said.

               This is the main source of money for the city, about 45 percent of the predicted income total. The proposed budget predicts increases in most other forms of revenue, such as property tax, business licenses, alcohol licenses and franchise fees.

               The surge in occupational tax led the city to cut property taxes more than 30 percent in the last two years. Asked after the meeting if another property-tax cut is in the offing, Vandegrift said, “Maybe that’s coming down the pike, too. It’s possible; there’s been some discussion.” But he added, “People seem happy so you don’t want to do it too much.”

               The mayor plans to hold budget workshops with the council, probably in the next two weeks, to agree on the budget before putting it into an ordinance. “This is something we are going to work on as we always do,” he said. 

               The city has about $290,000 in certificates of deposit that mature this year, starting next week. Noting that the highest interest rate on the three CDs is 0.93 percent, he named three council members -- Sarah Hicks, Logan Nance and John Holloway, as a committee to look at investment alternatives, with Nance as chair.

               Vandegrift announced that the $10,000 grant for a stage in the park, which the city recently gave up, is being held for it by the Bluegrass Community Fund. “They believe that it is such a worthy project that they are going to hold the funds indefinitely while we figure out how to pay for that project,” he said.

               The city gave up the grant after the Parks Board said it didn’t have the additional resources to do the project. Holloway, who is also the unpaid park manager, said last month that some merchants didn’t like the idea because it would create an alternative entertainment venue to Main Street.

               The council approved permits for two events: Race Rise, a 5K run on May 9 to raise money for a nonprofit veterans group that uses equine therapy for mental health, in conjunction with Mental Heath Awareness Month; and a Family Fun Festival to be held in Walter Bradley Park from 10 a.m. to 2 p.m. May 30.

                The festival will be an event for families and will include face painting, rock painting, and pine cone feeders, organizers said, adding that they plan on generating only one cubic feet of waste that cannot be recycled.