By Jeff Noble / Staff Writer
The 2013-14 budget for the City of Corbin is projecting an increase in revenue from taxes, and one big factor is from the taxes collected from the sale of alcoholic beverages in the city.
Total budget revenues for 2013-14 are projected at nearly $9.3 million, up from $8.8 million in 2012-13. The total’s made up of the resources and appropriations in the city’s General Fund, Municipal Aid Fund, LGEA (Local Government Economic Assistance) Fund and the Arena Fund.
Tax revenue this year is estimated at $3.2 million, up from $2.8 million in the 2012-13 fiscal year. Of that, occupational tax receipts are projected at over $1.3 million, while property taxes are forecast to bring in a little over $1 million for the 2013-14 fiscal year.
When sales from package liquor, package beer, the retail beer tax revenue and ABC (Alcoholic Beverage Control) income from alcohol sales in restaurants are added together, the projected revenue this year comes to nearly $734,000. That’s up from $476,395 in revenue in last year’s budget.
For the new fiscal year, sales of package liquor is projected at just over $211,000. It was not in the budget last year due to the first package liquor sales not made until late September of 2012.
Sales of package beer is forecast at $161,000, slightly up from $150,000 from the previous year. Package beer sales began in Corbin in June of 2012.
Retail beer tax revenue is also up for this year’s budget, projected to be $261,000 which is an increase from an estimated $250,000 last year.
As for ABC income from alcohol sales in restaurants, it’s estimated at $100,000 for 2013-14, up from nearly $76,000 a year ago.
Tax revenue is used in the city’s General Fund. For this year’s budget, projected General Fund revenues are listed at $7.6 million, an increase of almost $330,000 from a year ago.
Projected revenue is down from licenses and permits at around $1.5 million, compared to $1.6 million last fiscal year. Almost all of it comes from municipal insurance licenses projected to be $1.3 million this year.
The budget estimates business license revenue to be down $135,000 for the new fiscal year. The reason for the drop was an ordinance that reduced the business license cost by 50 percent, which went into effect in January. City officials said last December the tax on alcoholic beverages would make up the difference in this year’s budget.
Fees for municipal services is up slightly for the 2013-14 budget, projected to be just over $1.5 million. Garbage collection fees are far and away the biggest contributor in those services with a projected $1.2 million this year — almost the same as last year.
Money received from the state is up some, almost $35,000 more than a year ago. Sources of income include $170,000 from the Municipal Aid Fund, $73,250 from the Local Government Economic Assistance, or LGEA Fund, and various sources such as grants and state-base court revenue.
No income is listed from franchise fees for the new fiscal year. Last year, $25,000 was listed from the Kentucky Off-Track Betting franchise in Corbin. The OTB parlor closed in June of this year, due to the declining handle of betting at the Corbin, Jamestown and Maysville locations.
Projected Arena Fund revenues for 2013-14 are listed at $1.6 million, an increase from last year’s $1. 5 million.
Of those revenues, a projected $835,000 came from taxes. What’s referred to as the Expo Center Restaurant Tax makes up almost all of it at an estimated $800,000, up slightly from last year. The remainder comes from the room tax on motels, up $15,000 from last year. Arena rent income increases in the budget, with nearly $234,000 forecast for this year, an increase of just over $128,000 from 2012-13. Miscellaneous revenues are also up with this year’s amount at over $302,000, up from last year’s $246,000. Concessions and merchandise make up the largest revenue sources.
For this year’s budget, police expenses add up the most. Of their projected $1.9 million budget, up slightly from a year ago, $1.6 million goes for personnel costs like salaries, health insurance and retirement benefits. Another $211,000 is budgeted this year for supplies, materials and fuel.
Public Works expenses come in second, out of their $1.7 million budget for 2013-14, up from a year ago. Like their police counterparts, much of it goes for salaries, retirement benefits and healthcare insurance. Contractual services, such as insurance, rental of the dumping ground and the transfer station, make up $362,000, while fuel, supplies and materials are budgeted at $267,000.
Expenses for the fire department are third, out of their $1.2 million budget this year, slightly up from last year. The vast majority of their budget expenses go to salaries, healthcare insurance and retirement benefits. Another $71,550 is budgeted this year for fuel, materials and supply costs.
General Government expenses are fourth, out of their projected budget of over $842,000, down from a year ago. For those who work at City Hall, almost half of the total is for personnel costs, such as wages, benefits and insurance. Contractual services plus supplies and materials costs round out almost the rest of their budget.
Compared to last year’s budget of $663,000, Parks and Recreation’s expenses are projected to be down almost $145,000 this year. Personnel costs are barely up this year at $310,650, but supplies and materials are up at $164,600. A big reason for the smaller budget is the capital outlays expenses. A year ago, expense from a recreational trails grant was at $201,800, while this year, it’s only $10,000.
Corbin Recycling Center’s expenses are up, out of their projected $402,000 budget this new fiscal year. Over half of it, $258,332, goes to salaries and wages, along with insurance and benefits. Allowing for increased fuel prices and a $70,000 special outlay from a CRC grant also brought their budget expenses up from a year ago.
Expenses for Special Projects were up, estimated to be $287,304 in 2013-14. Of that total, $162,000 was for expenses to the Corbin Arena from a fund transfer, almost even from last year. Another large expense added this year was $75,000 for sidewalk construction and maintenance.
The Building Inspector’s Office also showed an increase in expenses out of their projected budget this year at $133,350. Like the other departments shown earlier, salaries, healthcare insurance, retirement benefits and training make up for the bulk of the expense at $103,200.
Expenses for the Downtown Corbin program (formerly Main Street Corbin) had a slight increase this year at a forecasted $130,495. The cost of materials and supplies, such as advertising, dues, phone expenses and an architectural review of Main Street, was the biggest chunk of the budget at $78,450.
Expenses budgeted to Municipal Aid and LGEA departments remained the same this year with $170,000 coming from the Municipal Aid and $73,250 from LGEA funds. The LGEA expenses go to maintain city streets and for animal control, along with insurance for the Corbin Tech Center and Southern Kentucky Chamber of Commerce. Also, $24,000 of the money is donated to the Corbin Senior Citizens organization. Municipal Aid expenses help maintain city streets and bridges, as well as being used for paving, drainage, signs and equipment.
Contractual services are the biggest expense in the Arena Fund’s budget, which is projected at nearly $798,000 for the new fiscal year, up over $31,000. Of that, the Arena loan payment to the Kentucky League of Cities is the highest at $433,350, down from last year’s $476,000. However, penalty and interest expense went up from $284,000 in 2012-13 to $357,546 in 2013-14.
Personnel costs came in second in the Arena Fund’s budget, with over $596,000 projected for the new fiscal year, up from last year’s $495,250. Salaries and wages were by far the largest expense with $480,000 budgeted for this year, up $103,000 from last year.
Third were supplies and material costs coming in this year at $235,728, a little down from last year. Utility expenses and sales tax expenses were the two top costs combining for an estimated $131,000, which was the same as last year.
One expense missing from the budget is from the “OTB Economic Development” account.
Last year, $25,000 coming from the Kentucky Off-Track Betting parlor in Corbin went there to be used by the Corbin Industrial Development Agency (CIDA). After the OTB parlor closed last month, the city cut the money from this year’s budget.
The budget will appear in its entirety on the Times-Tribune website at www.thetimestribune.com.