Tagged: Louisville Metro Council

Louisville Metro Councilman Rick Blackwell, D-12, is pulling his support of an ordinance to help pay for the Affordable Housing Trust Fund by raising the city’s tax on insurance premiums.

The proposal was introduced by Democratic lawmakers this week, and seeks to increase the tax by one percentage point to raise an estimated $9.7 million.

Supporters argue going from a 5 to 6 percent rate represents a small increase per month for average residents.

In an e-mail message sent Feb. 11 to Councilwoman Tina Ward-Pugh, D-9—the bill's chief sponsor—the Jefferson County attorney’s office said it is "unconstitutional" to designate public funding exclusively for affordable housing

Any new revenue would have to go through the general fund first, and that is unraveling the bill's support.

"I think it’s problematic if it’s not a dedicated source. That’s what people had signed on for," says Blackwell. "It was supposed to be a way to take care of some of the issues in our neighborhoods with the abandoned and foreclosed on homes. And if it’s not dedicated to that I think you’ll have a hard time keeping sponsors and keeping people on board to vote for it."

A handful of Louisville Metro Council Democrats are proposing to raise the insurance premium tax by 1 percentage point to pay for the Affordable Housing Trust Fund.

The ordinance would increase the premiums on policies such as life, casualty, home and automobile insurance from 5 percent to 6 percent.

It is estimated raising the tax will generate an additional $9.7 million in revenue towards the city's general fund. Supporters of the ordinance admit other council members may want to use new funds to fill the project $13 million budget shortfall or shore up the city's depleted road fund.

Besides housing issues, the legislation specifically speaks to the "acute need of road and sidewalk repair" and to improve transportation.

Councilwoman Tina Ward-Pugh, D-9, is one of the seven sponsors of the bill. She says if the increase passes it will last only five years, and that she and others will work to make sure it is used for housing.

"The seven of us are going to do our best to convince a total of 14 of us on the Metro Council when we come to budget negotiations that this new $10 million revenue over the course of the next year should be dedicated specifically to affordable housing issues," she says.

After a 30-minute debate, the Louisville Metro Council’s government accountability committee put off a vote asking state lawmakers to give the city’s ethics commission subpoena power.

The non-binding measure had bipartisan support initially with leaders on both sides of the aisle saying it made common sense. But during discussion, Democrats raised concerns that state lawmakers could give the commission too much power and that the council should deliver a more specific proposal.

Councilman Jerry Miller, R-19, is chairman of the committee and filed the resolution. He says he was surprised by the decision to table to measure because no council members objected to the matter beforehand, adding Democrats have sent a troubling message.

"The non-partisan metro council of Lexington is supporting passage of a resolution, which urges passage of this. Our partisan council in Louisville seem to have issues and it’s troubling, but we are where we are," he says.

The Metro Council ad hoc Vacant Properties Committee is holding a special meeting in west Louisville to hear from community groups and neighborhood leaders.

Committee members are specifically looking to spotlight organizations with small budgets, and are urging groups to make 2 to 3 minute presentations.

Vacant Properties Vice-Chair Attica Scott, D-1, says she wants to introduce the community to city initiatives related to abandoned and vacant properties, and give non-profits a chance to showcase their own ideas to lawmakers.