June 4, 2014 — Olive Hill City Council held the first reading of its budget for the 2014-2015 fiscal year at a special meeting last Tuesday night.
The total general government budget for this year is $1,416,500, a decrease of nearly $228,000 from last year’s budget.
The dip in appropriations is mostly attributed to Community Development Block Grant (CDBG) and other grant expenditures that took place during this fiscal year.
Proceeds from those grants had been included in the city’s budget calculations in previous years but this is the first year that the monies have actually been drawn down as a bid was finally secured for restoration of the old Olive Hill High School property.
Work is currently underway on the project which will see the building transformed into an arts and education center.
The budget for the city’s utility fund will increase with total appropriations of $5,024,497 for the fiscal year.
That figure represents an increase of $239,261 from the previous year.
The budget ordinance does not specify itemized revenues and expenditures for the utility department.
That fact makes it unclear as to the source of the increased revenue.
Mayor Kenny Fankell also informed the Council of some unexpected financial hits for the upcoming year.
“We’re looking at an across-the-board increase of about $30,000 in our general liability insurance,” said Fankell.
He also stated that current year revenues from the insurance premium tax are approximately $13,000 short of projections.
“I don’t understand why our liability insurance keeps going up. We’ve done all the things we needed to do to keep it down,” said Council member Allen Stapleton.
The budget proposal also indicates projected occupational tax revenue of $80,650 for the year.
The controversial tax was implemented last fall but to date no hard figures have been released as to how much revenue it is currently generating for the city.