The Hopkinsville Committee of the Whole discussed the state’s pension issue and how it could affect the city during their meeting Thursday night.
Mayor Carter Hendricks explained to the committee the pension issue was not created by the city.
He adds not only should they be making tough decisions but also push back on state legislators to make some changes.
Every city is having to find creative ways to help fund the state’s pension issue and the problem will not get easier, according to Hendricks.
Councilmember Wendell Lynch, who served as chairman of the Pension Relief Committee, says they came up with three options for ways to move forward. One of the options could be a 4% increase to the property taxes each year, increasing the business license fee to 1.95% with no cap, and implementing a 2% payment in lieu of taxes on HWEA for both water and sewer services in the city limits, which in turn could raise bills for consumers.
Chief Financial Officer Robert Martin presented the options that council members could choose from to raise additional funding for the pension issue.
Councilmember Tom Johnson says he is not in favor of raising taxes to help fix the state’s issue.
Committee of the Whole Chairman Terry Parker tells the News Edge they will continue to have discussions about the issue and that this will give council members time to talk with constituents about the issue to see how they would like the city to move forward. He adds there are some additional numbers he would like to see including the 5 and 10-year running average of their natural revenue growth before making any decision.
Mayor Hendricks notes as people look at the data, they should be calling legislators at 1-800-372-7181 to let them know how this will affect Hopkinsville.
You can view possible scenarios that Hopkinsville City Council could approve below.
Council also heard from City Attorney Doug Willen who explained the process of replacing Mayor Hendricks, who is stepping down to become the Director of the South West Kentucky Economic Development Council. Hendricks is resigning on February 1, but it will not become effective until the council’s meeting on Tuesday, February 4. After that, members have one month to appoint a new mayor or Governor Andy Beshear will appoint someone to fill the office until the November election.
