City commission suggest to repeal alcohol tax

Several community members shared concerns about a recently passed alcohol fee to Maysville City Commissions, leading to the decision to possibly repeal the ordinance.

The first concern raised was whether commissioners had thoroughly engaged in discussion about the fee before passing it. Maysville Mayor Debra Cotterill stated the city has discussed the fee multiple times.

Gwendolyn Boone stated a discussion regarding the fee took place on June 21 and June 26, with less than three days between the first and second readings of the ordinance.

“On the meeting on June 27, Miss Dunbar said that this fee is typically enacted by municipalities moving from dry to wet, that makes a lot of sense to me because police departments in those cities would have historically balanced their budgets without any alcohol-related calls. Now Maysville has been wet since time and memorial, why is it that now we can’t balance our police budget?” Gwendolyn Boone questioned.

Commissioner Ann Brammer stated she agreed on the meeting dates and that the fee was maybe discussed briefly before them but that is when it was discussed.

City Clerk Lisa Dunbar stated she believed there was a discussion two meetings before the readings and that it did not come up suddenly.

Kentucky Gateway Museum Center Executive Director Robert Boone spoke about the effect the alcohol regulatory fee might have on the museum and its employees.

Robert Boone stated, “You’ve by now seen a statement by Old Pogue that due to the implementation of the fee the distiller has not, has decided not to sell their product in city limits. If this alcohol fee stands, then Old Pogue will no longer sell, as I mentioned, in city limits and that will lead to the permanent closure of the Old Pogue experience at the Kentucky Gateway Museum Center rather immediately.”

He said the museum relies on the revenue produced from bottle sales as well as pour sales to offset expenses at the Old Pogue experience.

“Without that offset, we will close the first floor of the Limestone building, lay off a few staff members and begin to save for the tens of thousands of dollars it will take to retrofit the building into an exhibit space only after spending tens of thousands of dollars to prepare the space as an affiliate of the distillery just a few years ago,” Robert Boone stated.

If the commission decides to keep the alcohol fee, it will greatly negatively impact the museum, community and the tourism economy, according to Robert Boone.

“It’ll be really difficult to explain to tourists and the community that Maysville, where bourbon began its journey, does not have a distribution point for locally produced bourbon due to this very ill-conceived policy decision and its equally ill-conceived implementation by city elected officials and management,” Robert Boone stated.

He raised concerns about the decision to pass the fee.

“Does it not raise any concern among this legislative body that on June 7, it was stated ‘We thought we missed the deadline to apply for this fee’ only to have an alcohol fee pushed through in two separate special readings and special meetings less than three business days apart? This fee seems like such an afterthought, although its consequences are severe for business owners and to our economy, it is very poor judgment and very poor management to have this fee and other taxes passed days before the new fiscal year budget is to take effect. Decisions like this should be made with ample public comment by March, ideally not days before the new fiscal year beginning July 1 and I really have no words to describe taxes being implemented right before our new budget is to take effect,” Robert Boone remarked.

Robert Boone brought up other services that he feels the city has been negligent of.

“At the same time, we’ve had over 25 boil water advisories since January this year and this is a direct result of a negligent decision to dissolve the Maysville-Mason County Utility Commission by our city administration, divesting it both for city and county representation and putting our burden of revenue production for needed infrastructure updates on our city commission. This body, the legislative body, is avoiding real infrastructure problems instead, and instead hell-bent on putting the squeeze on small local businesses and instituting an alcohol fee as a grasping at straws attempt,” Robert Boone stated.

Cotterill reminded Robert Boone that his remarks should stay focused on the alcohol fee, due to special called meeting rules and regulations that prevent speakers from straying from the specified topic.

Robert Boone told Cotterill that his point was relevant, to which she stated the utility department’s services are not directly correlated to the alcohol fee.

“My hope is that this leadership mindset will change and this ill-advised, ill-implemented and ill-fated alcohol policy will be reversed on Thursday,” Robert Boone stated.

Commissioner Victor McKay said it seemed like a consensus regarding the alcohol fee was evident and said it looked like the ordinance would be repealed at the city’s regular meeting on Thursday, July 11.

Brammer agreed to repeal the ordinance and said her mind would not change, leaving a majority of commissioners in favor of repealing the ordinance that implemented an alcohol fee.

City Attorney Kelly Caudill said he would prepare an ordinance that repeals the alcohol fee ordinance for the upcoming meeting.

Owner of Hemingway’s, a local bar, Tony Wheary stated, “Myself and other small businesses in downtown Maysville, you know we’re looking to create an environment where with Caroline and other folks that is a destination location for people who travel. What we’ve noticed, and I communicate with most of the people that come into our establishment at Hemmingway’s, 20 percent of the people are from out of town who are seeking weekend getaways they’re coming to Maysville and they love it the history, the people, the culture and we’re trying to be apart of it.”

He said if the fee continues it will put a financial squeeze on the business, forcing decisions on how to move forward.

“I spoke with other business owners who had plans for expansions and have just absolutely put things on hold or as one individual said I’m going to take my toys and go home right just shut down business,” Wheary stated.

He said his primary concern would be if the fee stood, if there were financial restraints would it be increased.

“Somebody that’s been established for a while, maybe it’s a different story but for new businesses and inviting new businesses to begin in Maysville, once they see how other people have started and left, it’ll make them re-think,” Wheary stated.

Commissioner David Cartmell said he spoke with Jon Pogue and did not know what was sold by the distillery until he was told how much it would cost.

Pogue stated, “It is, it is an old industry that I’m in I currently pay seven taxes on every single bottle of bourbon I sell this would be the eighth, in addition to individual bottle sales I have a property tax that’s unique to Kentucky on my aging barrels and those taxes go directly to the local government granted that is going away I think it’s over the course of about seven or eight years that, that is being faded, it is just very difficult for me to make particularly in this case one year plans when I have a sudden imposition of a new tax and a five year plan and a 10 year plan pretty much caput because I don’t know if you are going to do this again.”

He said if this were to come up again, to please talk to him so that he can prepare.

Owner of Skipper’s, a local restaurant and bar, Gary Blanton suggested having a business advisory council.

“Maybe when something like this comes up, a group of us we’ll all form together restaurant hotel type association when things like this come up we can learn things like the different taxes the gentleman has to pay from Old Pogue things like that and try to work together find better ways to do that and communicate. What I don’t like is surprises,” Blanton stated.

Cotterill asked the commissioners who voiced wanting to repeal to present a budget solution at the next meeting and further stated, “A solution for the problem that we have yet to resolve, and that is that we are losing personnel because we are not competitive in the market, so please be prepared on Thursday to also discuss those items,” Cotterill stated.

Cartmell said he spoke with a CPA who told him they do not need to have an alcohol fee and that there is enough reserve.

“As I said when we first started talking about this, I would like wait to the first of the next quarter to see what the industrial base is going to be here,” Cartmell stated.

The next regular meeting for the city commission is on Thursday, July 11.