Struggling Eastern KY City Withdraws Proposed Tax

By Associated Press | 

OLIVE HILL, Ky. (AP) — Officials in an eastern Kentucky city struggling to pay its bills have withdrawn a proposed payroll tax.

The Independent reports the Olive Hill City Council's decision Tuesday night received applause from residents who attended the meeting, but it leaves the municipality in a sea of red ink.

The tax would have brought in an estimated $125,000 annually. After withdrawing it, city officials adopted a budget that cut $11,000 from?five departments including police and fire.

Mayor Kenny Fankel said Wednesday that the city ended its fiscal year with a $60,000 shortfall and he's not sure if it will be able to pay all its bills.

He said officials plan to meet on Sept. 26 to discuss other ideas to raise money.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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