The Hopkinsville Committee of the Whole voted Thursday night to forward the $38.5 million budget for Fiscal Year 2020-2021 to the city council with a change to the proposed cost of living adjustment for employees.
The proposed budget presented by Mayor Wendell Lynch last Friday includes a 4% cut in all departments and agencies, a payroll tax revenue decline of 7%, a property tax revenue increase of 4%, and a 2.3% cost of living raise for city employees, and includes $667,000 from last year’s revenue.
Mayor Lynch said they suspected the budget would be in the red this year due to the COVID-19 pandemic and their challenge has been to minimize the amount of deficit, which he believes they have done by making the 4% cuts. He added they made some adjustments since his budget address due to the recent announcements that the water park is not opening, and the cancellation of Summer Salute and the Hoptown Hoppers 2020 season.
Chief Financial Officer Robert Martin said this has been a challenging year for the budget and this is uncharted territory, especially trying to project revenue for the next several months. He pointed out there will be amendments to the budget during the fiscal year as more information becomes available.
Martin said payroll tax revenue represents almost 50% of the city’s budget which he is projecting will be a decrease of approximately $1.2 million for the year.
He added the 4% property tax rate increase would bring in additional revenue of approximately $165,000.
Councilman Travis Martin made a motion to remove the 2.3% cost of living raise adjustment (COLA) for city employees saying he believes it would be great most years for morale, at this time he does not feel it is feasible due to the uncertainty of the economy.
After some discussion among members, Martin rescinded the motion to remove the 2.3% cost of living adjustment and made another motion to include a 1.25% pay raise which would be a reduction of approximately $206,423. The motion passed by an 8-3 vote with Darvin Adams, Terry Parker, and Patricia Bell casting the nay votes.
Members of the Committee of the Whole then voted to send the capital and operational budgets with amendments to City Council. The next city council meeting will be held Tuesday evening, May 19, at 6:00.
