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Perryville tax to replace garbage bill

January 25, 2004|GARY MOYERS

PERRYVILLE - When the City of Perryville sold its water service to Danville, it lost its primary weapon to enforce garbage collection payments.

"When we handled the water bills, we used that as a means of collecting payment for garbage bills," said Mayor Bruce Richardson. "If someone didn't pay their garbage bill, we had the option of turning their water off. Now, we no longer have that option."

Garbage still is collected in Perryville, however, so Richardson and the county council members have come up with a way to make the garbage fees a moot point.

The council plans to give first reading at its Feb. 5 meeting of an ordinance eliminating garbage collection bills for customers and letting the city pay the $35,000 annual fee. To offset the costs, the council plans to vote on an insurance premium tax increase from 5to 10 percent.

"We have to make sure the city is not losing money on this because that's a large expenditure for us to absorb," said Richardson. Richardson did research on Perryville's insurance premium tax - a tax collected on all insurance premiums paid in the Perryville city limits - and found that the present 5 percent rate was enacted in 1981 and has not changed in over two decades.

"Our comparisons with surrounding cities of comparable size showed we have the lowest rate in the area," said Richardson. "We are excluding health insurance premiums from the tax, and our calculations show this would generate an additional $36,000 a year in revenue. The increase to 10 percent would be in line with what other cities our size charge."

Richardson said residents of Perryville should not see a change in their expenses, but rather the money simply is going to a different area.

"Essentially, it means residents will no longer receive a garbage bill in the mail," said Richardson. "Instead of paying that fee, the fees will come from the insurance premium tax increase. But they'll still receive garbage collection services, of course."

Assuming the bill is read at the Feb. 5 meeting, a special meeting will be held later in the month for second and final approval. In order to take effect July 1, the beginning of the next fiscal year, the bill must be approved at least 100 days prior to that date, according to state law.

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