Editor's note: This story was updated at 5:24 p.m. on Sept. 13 to correct percent of revenue generated by the proposed tax rate and add the compensating rate.
The Frankfort City Commission on Monday held the first reading of an ordinance that would raise the property tax rate by 0.3 cents, or 1.5%.
The new tax rate would be 19.8 cents for each $100 of assessed valuation of all real and personal property; 19.8 cents on each $100 valuation on public utilities and public service companies taxable on a franchise basis; and 15 cents on each $100 of taxable capital for insurance companies.
The increase would generate approximately $137,000 more revenue for the city than last year.
The proposed rate increase would generate 4% more revenue than the compensating rate of 19.1%. The compensating rate would generate the same revenue as last year.
City Commissioner Eric Whisman said the commission unfortunately has no option but to accept the increase in order to meet the city’s demands.
“We’re short-staffed in a number of areas versus where we were several years ago, and meeting our pension contributions,” he said. “We’ve got to figure out better ways to use our funding and be more prudent in our spending.”
Whisman said the commission must "have some strong discussions about what we support in the future and what we can’t."
"This will be my last year supporting this large of an increase,” he added.
The commission also held the first reading of an ordinance setting a 2020 motor vehicle tax rate of 22.7 cents per $100 of assessed value. The rate remained the same as in 2019.