KLCD

irec

tA

Ken

tuck

y L

eagu

e o

f C

itie

s P

ub

lica

tio

n

May / June 2005 vol . 7 i ssue 4

The Bottom Line on Session 2005

(Plus a Forecast on Session 2006)

IN THIS ISSUE

2City Chronicles

4

6

From the President

Big Ideas/Innovations

NLC NEWS

1In order to get new ideas and

legislation passed in Frankfort,it often takes several sessions.This year, although state issuesand tax modernization were thefocus, legislators did recognizethe importance of key localissues - for which KLC hasbeen case building for years.

With the help of some keylegislators, cities have benefitedfrom positive legislation duringthe 2005 session. Much of this

was the result of some long term effort by theKentucky League of Cities, KLC members and cityleaders. In particular, KLC has been working onbrownfields and historic tax credits issues for years.Now, laws allowing real, locally based solutions forbrownfield development, as well as real incentivesfor rehabilitating historic property can begin towork for our cities. This legislation takes a broad“global” view of the issue - addressing an age oldproblem with a solution that will not only help citiespreserve and redevelop their unique or older areas,but also and more importantly, build on what'salready there. It was common sense in action.

Bigger changes are also on the horizon. With theguidance of our board of directors, KLC is workingwith our members, our legislative committee andlegislators to create options that will address the

worsening threat tocities. We mustaddress a dangerous,continuing trend, asexpenditures in Kentuckycities outpaced revenuesby an average of three percent this year. Why?Cities still don't have the options they need togenerate revenue - and even worse; there aredistressing signals that cities may even lose autonomyin choices such as provision of health insurance.

We all want to help promote the Kentucky“Unbridled Spirit” brand around the country andaround the world in order to attract wealth to ourstate. But here at home, cities, like businesses, needto be “unbridled” and unburdened of the manyrestrictions they have, and be given the tools tothrive and create wealth from the inside to achievequality of life for citizens today - and for the future.

In the meantime, hopefully, what is happening inFrankfort is a sign that our efforts are indeedworking. We are thrilled to see results in areas suchas historic tax credits and brownfield legislation.And, we are encouraged that Democratic andRepublican legislators, as well as our executivebranches, are realizing that the overwhelmingmajority of Kentuckians live in incorporated cities.They are making the critical connection that thesuccess of the Commonwealth overall is directlytied to the success of its cities.

FRONT PAGE NEWS

The Bottom Line on Session 2005(Plus a Forecast on Session 2006)

C O N T E N T S May/June 2005

FRONT PAGE NEWSThe Bottom Line on Session 2005 1

CITY CHRONICLESSylvia’s Diary for KLC Direct 2

CITY POSTCARDSA Look at the City of Munfordville 3

FROM THE PRESIDENTSlowly, But Surely 4

MEET ME AT KLCStaff Profile: Matthew Parsons 5

BIG IDEAS/INNOVATIONSCOOL Way to Grow 6

KLCD

irec

tA

Ken

tuck

y L

eagu

e o

f C

itie

s P

ub

lica

tio

n

Premium Option forInsurance MembersIn 2003, the KLC Insurance Agency

formed the Kentucky League of CitiesPremium Finance Company, specificallydeveloped to benefit KLC insurancemembers. With it, KLCIS liability, propertyand workers’ comp customers can choosecustomizable billing options for annualinsurance premiums. This helps cities, whosebudgets continue to shrink, benefit fromflexible billing cycles, budget paymentsthroughout the year, enhance cash flow tohelp meet other financial obligations, andbenefit from equitable, competitive rates,regardless of city size. It ultimately helps allKLCIS customers by dramatically increasingtimely customer payments, keeping costsdown for everyone.

In the first two years of operation, the KLCPremium Finance Company has successfullyfinanced 218 members’ insurance premiums.

If you have cash flow concerns, please considerusing this valuable member service. For moreinformation on the premium finance options,contact Amy Loftus at 800-876-4552, ext. 3783or email aloftus@klc.org.

KLC changed their lock box

address last year. Please

make sure your records are

updated to ensure proper

crediting for your KLC

payments!

All payments relating to

KLC, KLC Insurance

Services, KLC Workers'

Compensation Trust and

KLC Unemployment

Trust should be mailed to:

Kentucky League of Cities

PO Box 34128Lexington, KY 40588-4128

Please send ONLY KLC Premium

Finance payments to:

KLC Premium Finance

PO Box 73100Cleveland, OH 44193

Don't get caught sending your check

to the wrong address. Thanks for your

assistance!

THE CHECK’S IN THE MAIL:

Please update KLCPayment Addresses

As city needs continue to increase while revenuesources remain limited, the resources of KLCFinance remain an attractive option.

The reason is twofold. KLC Finance offerscompetitive rates that are routinely better than whatbanks offer, and the interest earned is reinvested inserving Kentucky cities rather than applied to profitmargin.

In 2004, KLC:

Issued $10 million for two housingauthorities through the Capital Funds LoanProgram.

Issued $50 million in tax-exempt bonds forthe last KLC bond pool, which providedborrowers with an average interest rate ofunder 2 percent.

Loaned $24.5 million to 21 cities andagencies.

Financed projects that included a city-ownedcable system, utility projects, water and sewerprojects and city hall renovations.

"Like the rest of the League, our goal in financialservices is to help cities thrive in every way we can,"says Nancy Wylie, KLC's municipal financeadvisor. "Giving them the best possible rate notonly allows them to begin needed projects, thesavings can help them take on more projects thanthey might otherwise be able to assume."

KLC offers both variable and fixed rates withterms up to 30 years.

"We also have low closing costs, and often nonewhatsoever," notes Garrett Drakeford, director offinancial services. "Add such things as rapidturnaround time on loans and no prepaymentpenalties on most loans, and we think we offeradvantages for cities that few if any outsideinstitutions can provide."

For additional information on KLC financial services,call 1-800-876-4552 or 859-977-3700. Information,a contact form, and online applications are also availableonline at www.klc.org.

Financial Options for Your City

Take Advantage of aSpecial NLCMembership Offer!

Join for one year at 25 percent off or twoyears at 35 percent off!

The National League of Cities (NLC)provides Kentucky leaders with theopportunity to share and learn with cities ofall sizes across the nation on meeting theneeds of their communities and addressingthe day-to-day challenges of municipalgovernance. As your city prepares its FY2006 budget, please consider joining theNational League of Cities and remember toinclude your NLC dues.

Visit www.nlc.org for a membership applicationor to view NLC's dues scale.

>>>See all the Legislative Session Summaries on the special KLCDirect flap!

“ ”The difficulty in life is the choice.

-- George A. Moore, from The Bending of the Bough (act IV)

By Neil Hackworth, KLCDeputy Executive Director

3Mayor: John T. JohnsonPopulation: 1,563Location: Halfway betweenLouisville and Nashville offInterstate-65, Munfordville lies inHart county, situated on the banksof the Green River.

History: Munfordville is perhapsbest known for its role in theAmerican Civil War between 1861and 1865. The battle ofMunfordville took place inSeptember of 1862, whenConfederate forces invaded aUnion garrison that wasprotecting the valuable railbridge over the Green River.

After a three day siege, the Unionarmy surrendered the bridge,cutting off a major transportationcenter and supply channel.Festivals: Today, Munfordvillestill celebrates its historic traditionby hosting the Hart County CivilWar Days in September. Thefestival includes a battle re-enactment, arts and crafts, a parade,live music, and a Blue and Grey Ball.The 26th annual Civil War Dayswill be held September 9 - 11, 2005.

(The Civil War mural seen in the postcardwas sponsored by the Munfordville TourismCommission, and is located right downtownacross from the courthouse.)

2

This monthly column is not necessarily new, just recast in an ever evolving effortto communicate better with all of you. Each month we’re doing our best to bringyou news of events and happenings and a glimpse of upcoming milestones.

April was a great month and one in which many of KLC’s annual initiatives reallybegan to pick up speed. The planning for the annual convention, the budget and theboard meeting in June is keeping us quite busy. The board meeting is June 10 and11 in the city of Maysville, home of KLC President Mayor David Cartmell.

In April, we celebrated the Governor’s Tax Modernization plan and the fact thatBill Nighbert has been named secretary for the Transportation Cabinet, EllenWilliams as vice-chair of the Kentucky Public Service Commission and Darrell

Brock as chairman of the Republican Party of Kentucky. Each have attained new status in their roles withstate government and we thank them for their many contributions. Additionally we met with Teresa Hill,the new executive director of Boards and Commissions - Office of the Governor.

I’ve been speaking on behalf of KLC and the NewCities Foundation to spread our message amongothers. These engagements have taken me to Campbellsville, Somerset, Owensboro, United Way ofFranklin and the city clerks annual conference in Lexington.

Our NewCities Foundation board of directors met during April and considered several initiatives. Wehope to make announcements of major initiatives in the near future.

We celebrated Earth Day with winning entries from several of our cities. At this celebration we unveiledthe first KLC report on recycling titled The Good, the Bad, the Green: Recycling’s Impact and Potential forKentucky. There will be more of these to come including an edition on city fiscal distress.

While Mayor Cartmell and I stayed behind to celebrate Earth Day, Neil Hackworth led a delegation ofour leadership to the Southern Municipal Conference (SMC) in Alabama with 1st Vice President, BradCollins, as well as Past President, Tom Holocher. Mayor Holocher is also the vice chair of the SMC andwe are so proud of his efforts!

Leaders of our executive board traveled to Washington, D.C., with me and Joe Ewalt, director of policydevelopment, to visit with the Kentucky delegation. On this trip, we scored a coup, meeting with everysingle member on issues such as on going funding for CDBG and transportation.

Meetings are the name of the game as KLC held our Funding Trust meeting in April. Neil and I metwith KLC’s 2nd Vice President David Willmoth, mayor of Elizabethtown. Then, Neil, Mayor Cartmelland I met with Brad Cowgill, state budget director, and finally, we met with and reacquainted ourselveswith David Adkisson, the new president of the Kentucky Chamber. Many of you may remember David asthe former mayor of Owensboro and we welcome him back “home”.

Our staff continues to discuss issues pertaining to the development of our legislative agenda, particularlyon tax reform.

Our big news is that we’ve just learned that Mayor David Cartmell will be going to China along with theNLC delegation in late June, all expenses paid thanks to NLC!

Sincerely,

Sylvia L. Lovely, KLC Executive Director/CEO

OFFICERSDavid W. Cartmell

Mayor of Maysville, President

Bradley H. CollinsMayor of Morehead, First Vice President

Mayor David L. WillmothMayor of Elizabethtown, Second Vice President

Karen L. CunninghamMayor of Madisonville, Immediate Past President

Sylvia L. LovelyExecutive Director/CEO, KLC

EXECUTIVE BOARDJerry E. Abramson

Mayor of Louisville Metro

Charles Beach, IIIMayor of Beattyville

Glenn V. CaldwellMayor of Williamstown

Robert A. ColemanCommissioner of Paducah

David C. FowlerCity Attorney of Owensboro

Thomas L. GuidugliMayor of Newport

Mike HaydonMayor of Springfield

Teresa Ann IsaacMayor of Lexington

Gregory T. JarvisCity Manager of Covington

Connie LawsonMayor of Richmond

Richard G. LiebeMayor of Hopkinsville

Robert E. ShubertMayor of Jenkins

J. P. Wiles Mayor of Somerset

The voice of Kentucky cities

KLCDirect is published monthly by the Kentucky League ofCities (KLC). KLC is a voluntary association of nearly 400 cities and provides amultitude of services to assist in improving local government. Please address anycorrespondence to KLC Direct, Kentucky League of Cities, 101 East Vine Street,Suite 600, Lexington, Kentucky 40507-3700. Phone (859) 977-3700 or1-800-876-4552. Fax (859) 977-3703. www.klc.org.

EDITORIAL STAFFPublisher, Sylvia L. Lovely

Editor, Terri Johnson

Design/Layout, Ulysses C. Hayes

Senior Writer, John McGill

Director of Communications, Bobbie Bryant

For a full list of KLC staff visit www.klc.org.

By providing pertinent information, the Kentucky League of Cities does notnecessarily endorse the views, services, programs or initiatives described in thelisted references or websites, nor is the Kentucky League of Cities responsible forany statements or material contained therein. This publication providesinformation and links as a service to readers for their consideration.

® 2005 Kentucky League of Cities

KLCDirectCITY CHRONICLESSylvia’s Diary for KLC Direct

CITY POSTCARDA Look at the City of Munfordville

Congratulationsto KLC Executive Director/CEO, Sylv ia L . Love ly ,

named Kentucky Communicator of the Yearby the Thoroughbred Chapter of the Public Relations Society of America.

Sylvia L. Lovely with PRSA President,

Jacqueline Allen of Lexmark, Intl.

5

4City issues haven't

always gotten the attentionthey deserve in the statelegislature. But I have afeeling our elected officialsin Frankfort are slowlywaking up to theeconomic, cultural andsocial importance of citiesin the Commonwealth.Cities are where jobs are

created, ideas spawned, and amenities offered.Fortunately, the 2005 General Assembly sessionoffers a bit of hope that cities will be taken moreseriously in the future.

In addition to its major accomplishment of givingthe state a formal budget, coupled with some muchneeded adjustments to our tax structure, theGeneral Assembly passed several bills that will helpcities. But the most important thing to come out ofthe most recent session was a broad recognition thatKentucky needs to keep investing in itsinfrastructure, services and educational institutionsto succeed. That means investing in cities.

Several reinvestment items were included in theexecutive branch budget that emerged from the

session. Most significantly, the budget includes $50million in bonding for city streets and roads. Thebonds are to be paid off by continuing the pennyper gallon increase on the gas tax. Half of the $50million will be distributed to cities using theformula for municipal road aid, while the other halfwill be allocated through an application process. Asdetails on the application process become available,KLC will share them with you through this andother League publications.

The legislature also allocated $2 million for theRenaissance Kentucky program, which has been soimportant to revitalization efforts in cities of all sizes.Hopefully, cities will be able to leverage these andother funds to continue their campaigns to bringeconomic vitality back into our downtown areas.

None of this would have happened without thehard work put in by my fellow mayors and othercity leaders across the state. I am very proud of thededication shown by everyone. When a city officialcomes to Frankfort to meet with a state legislator orgive testimony before a legislative committee, he orshe is usually doing it on his or her own time, andoften paying for expenses out of his or her ownpocket. That kind of commitment can't be praisedtoo often.

I'm also proud of the good work done by theKLC staff, the tireless energy that our ExecutiveDirector Sylvia Lovely puts into the legislativeeffort, and the impressive understanding of thepolitical process that Neil Hackworth brings to thetask. The KLC staff really does take the interests ofcities to heart. When our crackerjack lobbying teamhits the halls of the Capitol, they are viewed assincere advocates, not just hired guns. Jerry Deaton,Bert May and Phil Huddleston all deserve a vote ofgratitude, as do the legal advisors, and research andcommunication teams that back them up.

In the final analysis, though, it's the cityrepresentatives themselves who tip the bucket.Nothing gets the job done like a local electedofficial going toe-to-toe with a state elected official.I'm thrilled to see so many mayors, council-members and commissioners getting involved. Wereally are making a difference, a difference that willonly grow in the years to come.

Sincerely,

Mayor David CartmellCity of Maysville, KLC President

The Kentucky League of Cities waspleased to join Governor Ernie

Fletcher, the KentuckyEnvironmental Quality Commission

and the Kentucky Associationof Counties to recognize 12communities for initiatives that

exemplify principles of sustainability.

2005 Earth Day Award Winners:

FROM THE PRESIDENTSlowly, But Surely

CITY BEAUTIFULCelebrating Earth Day in Our Corner of the World Recycling

On Point!Read the KLC

Policy Development’spremiere issue of KLCOn Point: Research andTrends of Key KentuckyIssues entitled "TheGood, The Bad, TheGreen: Recycling'sImpact and Potential for Kentucky." This first ina series of timely research reports focuses on thestate of recycling across the Commonwealth.Download a pdf version of the report online atwww.klc.org/publications/general publications.

Strodes Creek Watershed Action Plan, City of Winchester

Elkhorn City Adventure: Where Nature Meets Culture,Elkhorn City

Carnation/Nestle/Silgan Mitigation and RedevelopmentProject, City of Maysville

Paducah Lower Town and Artist Relocation Program

Greenbelt System, Bowling Green

Partnership for a Green City, Louisville

Lexington Clean Indoor Air Ordinance

Regional Community Stewardship, Northern Kentucky

Preston Project, Bath County

Kentucky Artisan Heritage Trails, Eastern Kentucky University

KP Hall and the Concerned Citizens, Logan County

Brownfield Initiative, Kenton County

1. Mayor David Cartmell of Maysville accepts a KentuckyEarth Day Award from KLC Executive Director/CEOSylvia L. Lovely 2. Sylvia presents Gary Epperson, ClaireSipple and Kenny Book with an Earth Day Awardhonoring the Strodes Creek Conservancy 3. The ElkhornCity Adventure - Where Nature Meets Culture washonored with an Earth Day Award. (l-r) StephanieRichards of Artists Collaborative Theatre and Pike CountyExtension Agent for Fine Arts; Patty Wallace, EQCCommissioner presenting the award; Elkhorn City MayorRichard Salyers; and Timothy D. Belcher of Elkhorn CityArea Heritage Council 4. University of LouisvillePresident James Ramsey (right), Metro Louisville DeputyMayor Joan Reihm and Jefferson County Public SchoolSuperintendent Dr. Stephen Daeschner (left) accept a2005 Earth Day Award from Lindell Ormsbee, EQC forthe Green City Partnership 5. Mayor Teresa Isaac (l) andDr. Melinda Rowe (r) accept an Earth Day Award fromBetsy Bennett honoring Lexington’s Clean Air Ordinanceto protect indoor air quality.

1

2

3

4

5

Staff ProfileMatthew ParsonsDatabase ManagerJoined KLC June 2002

After graduating fromIndiana University in May of2002, Matt Parsons joinedKLC a month later. His role

as the Database Manager/Developer for theInformation Technology department gave him theopportunity to be a force for positive change in adynamic environment. By streamlining thereporting and organization of institutional data,Matt helps lead the KLC staff to better and moreinformed decision making.

However, Matt’s continual pursuit as“Renaissance Man” will lead him away from KLC.

In July, he will enroll in the University of KentuckyCollege of Law where he aims to use his technologybackground to focus on Intellectual Property Law.Matt’s extensive IT knowledge and entertainingsense of humor will be missed. Best of luck to Mattas a new Wildcat!

Matt enjoys tennis, golf, skiing, travel andreading.

MEET ME AT KLC

6Retail business growth is critical tomaintaining healthy neighborhoods andbusiness corridors. Louisville Metro MayorJerry Abramson created the Corridors ofOpportunity in Louisville (COOL) program,which encourages and facilitates retaildevelopment business along Louisville'scommercial corridors to enhance the quality of

life of the citizens of Louisville, and createhealthy, thriving neighborhoods withrestaurants, coffee shops, and small drugstores.

COOL staff works with residents tounderstand their needs and wants, as well aswith landowners, retailers, developers, realestate professionals, lenders, governmentagencies and others to encourage and facilitateretail development to identify and promotesites, recruit retailers, and provide informationabout the toolkit of incentives available throughLouisville Metro including loans forimprovements and gap-financing for businessstart-ups. It's a venture that is working well forLouisville Metro, and more importantly, for thecity's citizens and businesses.

For more information about COOL, visitwww.LouisvilleRetail.info.

FROM THE FIELDGeorgetown's “Raid” Recognized for

its Authenticity as Living History EventThe roar of the cannon, the smell of

gunpowder, the pounding of horses' hooves.History comes alive at Georgetown's CardomeCentre June 17-19 with the annual reenactmentof Confederate Brigadier General John HuntMorgan's historical raids on the Bluegrass State.Since the Raid began in 1987, it has grown intoone of the most authentic living history events

in the nation, recreating the1860'slook and feel of America during the turbulenttimes of the Civil War. It includes battlescenarios, Morgan's Grand Masquerade Ball, abarn dance, a ladies social on Saturday, a periodchurch service and more.

The event is free to the public. For moreinformation, visit www.morgansraid.com.

Newport ItalianfestThe City of Newport celebrates its 14th

Annual Italianfest, June 9-12 withentertainment, kids’ activities, loads of foodincluding a pizza eating contest and theSpaghetti Nob Walk to benefit charity.Italianfest celebrates the city's history of Italianfamilies that settled in Newport generations ago.

Louisville RecognizedLouisville's Parks and Open Space plan has

been highlighted by the Trust for Public Land.Several years ago, the people of Louisville andJefferson County began working to develop acommon vision for growth. Specific parks goalswere created with input from residents.Included in the plan is a goal to acquire 8,000additional acres of parks and open space.Louisville Metro Mayor Jerry Abramsonrecently added the expansion of the JeffersonMemorial Forest to the plan. It's a 108-milehiking trail encircling the perimeter of the city.

An article in a Trust for Public Landpublication cites the organization's public-private partnership with the city's leadingphilanthropists to raise needed funds andacquire green space. The TPL already has anoption to purchase a 300-acre property in theJefferson Memorial Forest and is negotiatingwith other landowners in priority areas.

YOUNG VOICES More City Government Month CelebrationsThe City of Elsmere

celebrated City GovernmentMonth for the seventh yearwith special programs forstudents. Organizer Council-

woman Betty Wehner said 19local students and their parents werehosted to breakfast prepared by theElsmere Police Department, followedby tours of several city departments.

In addition, the city asked area fifthgraders to write a letter to

Elsmere Mayor Billy Bradfordconcerning problems they see inthe city. The winner wasJohnny D. Wood, III, fromDorothy Howell Elementary,who shared his strong feelingswith Mayor Bradford thatlitterbugs should pay fortrashing the city! Read

Johnny's letter to the left.

Meanwhile, Morehead Mayor Brad Collinsobserved City Government Month by paying avisit to Clearfield Elementary School, where hespent time with forty fifth graders, discussingand answering questions about city government.

Mayor Brad Collins with Clearfield Elementary studentsand teachers.

BIG IDEAS/INNOVATIONSCOOL Way to Grow in Businessand Quality of Life in Louisville

Williams Joins GOLDOn May 1, Governor

Ernie Fletcher appointedEllen Williams to serve ascommissioner of theGovernor’s Office for LocalDevelopment (GOLD).Williams replaced DarrellD. Brock, Jr., who wasrecently elected chairmanof the Republican Party ofKentucky.

Governor Fletcher said, "Ellen has extensiveexperience with public officials at every level ofgovernment."

Williams says it's an honor to accept the newappointment. “As commissioner of GOLD, Ilook forward to new opportunities to build uponexisting relationships with local governmentleaders throughout the Commonwealth. Localleaders are the backbone of our communities. Ilook forward to working with them and workingclosely with Governor Fletcher."

Williams has vast experience in working withthe public sector including most recently as vicechairman of the Public Service Commission(PSC). Her move to the PSC came after fiveyears as chairman and executive director of theRepublican Party of Kentucky.

KLC has a strong relationship with GOLD andhas worked on several partnership programs.

Clark-ParhamRecognized

On May 10, before acrowd of more than 500,Murray Councilmember,Doris Clark-Parham, wasrecognized as one of thethree finalists for the 2005Martha Layne CollinsAward. The award, givenat the Women LeadingKentucky Conference,

acknowledges women whoexemplify leadership and public service inKentucky.

Clark-Parham, who is also active in theKentucky Black Caucus of Local Elected Officials(KBC-LEO), received the distinction from dozensof nominees throughout Kentucky, narrowed to16 nominees, and then down to the final three.

May/June 2005vol. 7 issue 4

KLC Directis a monthly publication of the Kentucky League ofCities.Any comments or article suggestions should be forwarded to:Kentucky League of Cities, 101 East Vine Street, Suite 600, Lexington, KY 40507-3700859-977-3700 1-800-876-4552 Fax: 859-977-3703 www.klc.org

KLCD

irect

A K

entu

cky Leagu

e of C

ities Pu

blicatio

n

PRSRT STDU.S. POSTAGE

PAIDPERMIT NO 1042LEXINGTON, KY

Printed on Recycled Paper

CALENDAR OF EVENTS

For more information or to register online, visit KLC’s website at www.klc.org/leadership. With questions, contact Karen Butcher at 800-876-4552, or kbutcher@klc.org.

KLCDirect is designed internally to save our members money.We Want to Hear from You! To submit a story or commentary for KLC Direct departments, please contact the KLC staff listed or go to

www.klc.org. For overall feedback, contact Terri Johnson at 1-800-876-4552, ext. 3784, or tjohnson@klc.org.

Educate, Celebrate, ParticipateJUNE 2005

9 Abandoned, Blighted, and Tax Delinquent PropertiesKLC 7th Floor Training Room, Lexington, KY9:00 a.m. - 4:00 p.m.

28 The Legacy of Leadership: Building Cities and Economics that Work in an Era of ChangeCalvert City Area Fire Training Center, Calvert City, KY9:00 a.m. - 4:00 p.m.

Mark Your Calendar!2005 Kentucky League of Cities Annual Convention

Galt House Hotel Louisville, Kentucky October 5-8, 2005

The Kentucky Black Caucus of Local Elected Officials (KBC-LEO)held its 2005 Spring Summit, April 15-16 in Louisville, Kentucky.

KBC-LEO President George Brown (councilmember from Lexington-Fayette Urban County Government) presided over the association's two-daysummit, themed "Maximizing Our Power Through Legislative Cooperation."The summit featured distinguished speakers and guests that discussed ideas andeffective advocacy for KBC-LEO's focus areas of justice, education, health care,employment and economic development.

1. (l-r) Teresa Barton, executive director Office of Drug Control Policy; Police Chief RobertWhite, Louisville Metro; Attorney General Greg Stumbo; George Brown, Jr. KBC-LEOpresident 2. (l-r) Councilman Jacques Wigginton, LFUCG; Congressman James Clyburn,South Carolina and former Chair of the Congressional Black Caucus; President George Brown,LFUCG and president KBC-LEO; and Robert Jefferson, Lexington’s first KBC-LEO presidentpose after Con. Clyburn’s luncheon keynote address. 3. Some of the KBC-LEO membershippictured with Con. Clyburn following his luncheon keynote address 4. Louisville Metro’s newestCouncilmember David Tandy talks with Dr. Adewale Troutman, MD after his presentation onthe health care panel. 5. Priscilla Johnson and Annazette Fields of Murray sit with ShedrickJones, Sr. and one of the nine members of a Sister Cities delegation from Tomali, Ghana.

ASSOCIATION NEWSKBC-LEO Plans Work on Issues

1 23

4 5

What Tax ModernizationMeans to You! Cities are the beneficiaries of a very

productive 2005 legislative session, including the two most important bills of the session,

the state budget (HB 267) and tax modernization plan (HB 272).

The budget provides significant new money to cities for road

improvements and continued funding of the Renaissance program.

The tax modernization bill will impact cities in many ways.

Enterprise InitiativeAct

Brownfields Cleanup

Tourism, Meetingand ConventionMarketing Act

Task Force on LocalTaxation

Creates a tax incentive program to replace theexpiring Enterprise Zone program which wasavailable only in certain communities. The newprogram allows eligible companies statewide toreceive a refund of sales and use tax on building andconstruction materials. Eligibility is limited toapproved companies that establish a new facility orexpand an existing facility in specified industries.

Establishes tax incentives to encourage cleanup ofenvironmentally contaminated brownfield sites.

Imposes a 1% tax on hotel and motel lodging in theCommonwealth effective June 1, 2005 for deposit ina newly created Tourism, Meeting, and ConventionMarketing Fund in the state treasury for use by thestate in marketing and promoting tourism.

Provides for creation of a task force to review thecurrent structure of local taxation and reportrecommendations for local government taxmodernization to the Interim Committee onAppropriations and Revenue and the Interim LocalGovernment Committee by November 1, 2005.

Title What it Does

TelecommunicationsTax

Establishes a new tiered system of state taxationon communication services, including telephoneservice, cable television service, and directbroadcast satellite service, effective January 1,2006. The new tax will replace all city and countyfranchise fees, and the public service companyproperty tax on communication services utilities.The Department of Revenue will collect allrevenues for allocation to state and localgovernments pursuant to specific formulas,including funds to replace previous localgovernment receipts from franchise fees.

More! Additional Bills of Interest Passed by the 2005 General Assembly

HB 59Homeland SecurityRecords

HB 77Open RecordsInformation

HB 116OccupationalLicense Fees

Creates an Open Meetings Act and Open RecordsAct exception for homeland security records toexclude from public access records the disclosureof which would have a reasonable likelihood ofthreatening public safety, such as counter-terrorism measures and plans.

Requires distribution by mayors, county judges,and school superintendents to elected andappointed officials within their respectivejurisdictions of information prepared by the OAGon the requirements of the Open Records Act.

Extends the compliance deadline for KRS 67.750-KRS 67.795 regarding the levy of a net profits orgross receipts occupational license tax onbusinesses from January 1, 2006 to July 15, 2008.

Bill & Title What it Does

HB 35Legal Publications

Requires a newspaper to charge its lowest rategenerally charged for advertising for legal advertise-ments required to be published by a public agency.

Plan for 2006 Session

Looking Ahead to 2006:Local Government Issues Likely to beConsidered by the General Assembly

ExpandedGaming

LocalGovernmentTaxModernization

Merger ofCities andCounties

LocalGovernmentEmployeeHealthInsurance

Issue continues tocome up

Various bills filed

Tax modernization billprovides for creationof a Task Force onLocal Taxation

Legislators began tosee need for reform

Issue continues tocome up as statebecomes moreurbanized

Merger of services seenas an option

Blue Ribbon Panel onPublic EmployeeHealth InsuranceBenefits established bythe legislature

KLC will continue tomonitor the issue.

Message to Legislators:Whatever happens togaming, city governmentswill be impacted and shouldreceive a portion of therevenue.

KLC will proceed withdevelopment of a proposalfor local government taxmodernization and acampaign to convey themessage.

Message to Legislators:Cities need more options toraise revenue based on whatworks for them.

KLC will work to develop aproposal.

Message to Legislators:Current merger laws havenot been effective inallowing cities to merger.Other options need to bemade available that enablecities and counties to deliverlocal services in the mostcost efficient manner.

KLC will monitor the BlueRibbon Panel and reviewproposals.

Message to Legislators:The state employee healthinsurance problem will notbe solved by requiring cityemployees to participate inthe state health plan.

Issue Impact - 2005

www.klc.org Visit the Kentucky League of Cities website toview complete summaries of all bills relating to city governments enacted by the 2005Kentucky General Assembly.