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Council weighs subsidizing $1 Bluegrass Scribe fare and considers a temporary insurance tax cut
Summary
Council discussed whether to subsidize a newly restored $1 fare on Bluegrass Scribe service (staff said a $60,000 annual gap to eliminate the fare) and debated a proposal to reduce the local 8% insurance premium tax by 1 percentage point using surplus revenue; staff were asked to model costs and impacts before action.
Councilmembers on Jan. 12 discussed two budgetary items raised under new business: whether the city should subsidize a reinstated $1 fare on the Bluegrass Scribe transportation service, and a proposal to use a year-end surplus to temporarily lower the local insurance premium tax rate.
Bluegrass Community Action (Bluegrass Scribe) resumed charging $1 per ride after a five-year pause. Staff reported ridership growth to roughly 4,000 monthly riders and said the agency estimates a roughly $60,000 annual funding gap to eliminate the $1 fare. Councilmembers recommended reaching out to Bluegrass Scribe to confirm costs and exploring whether the county or other partners could share the subsidy; staff said the nonprofit is open to eliminating the fee if local funds are provided.
Council also debated a proposal to reduce the city’s insurance premium tax from 8% to 7% (with some members proposing 6% or adding a sunset clause). Proponents said returning funds to residents would be broadly distributed because many people pay some form of insurance; opponents and finance-minded members urged caution, noting net profits can fluctuate and recommended using one-time excess funds for capital projects. Council asked finance staff to model the fiscal impact, consider triggers or a sunset clause, and return with analysis ahead of state notice deadlines (staff noted a March 23 notice timeline for ordinance changes affecting the next fiscal year). No vote was taken on either subsidy or tax-change ordinance at the Jan. 12 meeting.
