Legislators who represent Christian County in Frankfort were at the Hopkinsville Municipal Center Monday morning to discuss potential impacts if the General Assembly doesn’t provide relief to cities facing monumental increases to pension liability in the coming years.
If city council does nothing and if the city only experiences minimal revenue growth outside of any tax increases, there would be significant budget shortfalls over the next five years—beginning with just over $1 million next fiscal year and about $4.8 million in 2024-2025.
That would mean budget cuts of at least 10-percent for each department. The Hopkinsville Fire Department would likely have to shut down the substation on Canton Street, the fire inspection division would dissolve, the Fire Arson Division would go away and there would be reduced medical response of fire crews.
Chief Financial Officer Robert Martin compiled a list of potential impacts to the various departments and notes the Hopkinsville Police Department would also have to eliminate some of the services it currently provides.
A couple options have been proposed by the Future Funding and Pension Committee to make up the pension funding deficit while not reducing as many services, but those solutions come with increases to the business license and property tax rates.
City officials want the General Assembly to create new ways for Hopkinsville to generate revenue, including a liquor tax and restaurant tax that are not currently available. Towns such as Oak Grove and Cadiz are allowed to levy those taxes, but former second-class cities such as Hopkinsville cannot—even though the abolished classification system had murky and antiquated specifications.
Representative Walker Thomas acknowledged the current system is unfair to Hopkinsville and believes there could be legislation to address it.
Senator Whitney Westerfield and Representative Myron Dossett agreed Hopkinsville should have access to the same tools as other cities and Westerfield says he’ll propose changes to House legislation to make a path for that to happen if the House doesn’t act first. Revenue bills have to begin in the House, per state law.
Mayor Carter Hendricks said he was encouraged by what he heard and says local communities have to be strong for Kentucky to be strong.
Judge-Executive Steve Tribble also briefly spoke in the meeting and says the county’s pension liability will grow by $1.1 million over the next five years. He’s also pushing for local governments to be eligible for a liquor tax and he believes fiscal court and city council are willing to work together on any new options that become available.
Watch entire meeting below:
https://www.facebook.com/CityofHopkinsville/videos/114931169901436/