Liberty OKs hike in insurance premium tax

The mayor called the tax the least aggressive for the people.

"We haven't had an increase in tax in eight years," said Sweeney. However, wages and benefits for city employees have been raised, he said.

"If we have services in the city, we have to have a way to pay and still keep the cost of living as cheap as we can," the mayor said. "We've done a great job already, but we don't want to increase utility costs."

He estimated the cost for an average property owner will be an additional $15 to $20 a year. The insurance premium tax pertains only to real estate and vehicles.

The tax will become effective during the next fiscal year. Sweeney said the city can expect to begin receiving the revenue in October.

Fire truck

The city also talked about imposing a tax for the fire department, but Sweeney said the insurance premium tax is more fair.

Fire Chief Donald Wilson has been telling the council for months the fire truck needs replacing. He estimates the truck will cost up to $200,000 and the cost is expected to increase by $8,000 this year because new equipment is mandated to help prevent pollution.

It will take about nine months to get a new truck built after it is ordered, Wilson said. The current truck is a 1989 model and must be replaced to prevent the fire rating from going up, he said. If the fire rating goes up, the property insurance premiums also will increase, he said.

The City Council approved a motion to commit to buy a new fire truck before the motion to raise the tax was approved.

Councilman Jim Ellison said if the city loses its fire rating, it will cost property owners more to insure their real property than the tax imposed.

The mayor estimates a new garbage truck will cost more than $100,000. He suggested holding a work session to discuss the city's needs and finances.