Hopkinsville Mayor Wendell Lynch is proposing a $40.5 million budget for the upcoming fiscal year that is just over $3 million higher than the current year’s spending plan.
Mayor Lynch noted almost $600,000 of that increase is a 12 percent increase in pension contribution.
The mayor says a recent salary study showed city department heads are paid less than comparable positions in cities of similar size and the mayor’s budget includes $227,000 for pay raises for most of those department leaders.
Lynch says a couple department heads have already been addressed and they are at a level similar to other cities and the amount salaries will be raised is on a case-by-case basis.
City employees in general would receive a 2 percent cost of living adjustment.
The city is projecting an 8.8 percent increase in payroll tax revenue with continued recovery from the pandemic and while property tax revenue is expected to grow with increased assessment, Mayor Lynch says he will not propose any increase to the tax rate.
Mayor Lynch also highlighted some major projects, including a new cell at the landfill to help extend the facility’s lifetime and will allow for vertical expansion in the future.
The mayor’s IGNITE comprehensive economic development plan includes $125,000 in initial funding for The Lot Next Door program to transition vacant or unmaintained lots to new ownership.
An industrial incentive fund could be established with an undetermined amount of initial investment from reserve funds. Mayor Lynch says upfront cash could be used as incentive to recruit industries and the money would be repaid with new payroll and property tax growth through the investment.
The budget will be discussed by the Hopkinsville City Council Committee of the Whole at meetings May 13, 20 and 27, if necessary.
Watch the entire budget address below:
https://www.facebook.com/CityofHopkinsville/videos/1048412449023267