Hopkinsville City Council approved the first reading of two ordinances to help fund rising pension costs and appointed an interim mayor at Tuesday night’s meeting.
The action by Council regarding the ordinances comes on the recommendation of the Pension and Future Funding Committee, which was chaired by Wendell Lynch. However, the two drafted ordinances approved at the meeting were not on the agenda, not provided in the media’s packet, or on the City’s website. Copies were provided to the media after the drafted ordinances were read.
Presiding officer Lynch said the current business tax license of 1.5% with a $10,000 cap will increase to 1.95% with no cap on net income, effective next fiscal year.
The increase would generate over $1.2 million beginning with fiscal year 2020-2021.
The increase in the business tax license passed by an 8-4 vote with council members Terry Parker, Tom Johnson, Jimmy Dossett, and Jason Bell casting nay votes.
Lynch explained the lieu of taxes levy of 2% for water and 2% for sewer against Hopkinsville Water Environment Authority is already in place for other utilities in the city.
The ordinance passed by a 7-5 vote with Parker, Johnson, Dossett, Bell and Paul Henson casting nay votes.
Johnson said there were two reasons he voted against the tax – he believes they are underestimating the city’s growth and he is unsure raising taxes is practical to cover the rising the costs of the pensions.
In other action, council members unanimously appointed Lynch to serve as mayor effective March 1st.
At the end of the meeting during council member comments, Darvin Adams made a motion to have a special called meeting Thursday night at 5:30 prior to the Hopkinsville Committee of the Whole meeting. Phillip Brooks made a second to the motion and said the special meeting would allow Lynch to vote on the second reading of the ordinances before he officially becomes mayor.
Lynch will be sworn in as mayor Sunday afternoon at 2:00 at the War Memorial Building in downtown. Lynch was appointed to the position after former mayor Carter Hendricks stepped down February 1st to take the executive director position with the South West Kentucky Economic Development Council.
