Hopkinsville City Council voted Tuesday night to keep the real and personal property tax rates the same as last year, and deferred a budget amendment which included $2.23 million in CARES Act funding and how the relief money would be allocated.
City Financial Officer Robert Martin presented the various tax rates comparisons, which included a proposed 4% tax levy, as allowed by law, that would have increased the real property tax rate to 24.7 cents per $100 accessed value, 24.8 cents on the taxable personal property per $100, and 25.1 cents on each $100 of taxable motor vehicle and watercraft property.
Martin also presented a comparison of leaving the rates the same as last year at 23.9 cents per $100 of taxable real property and 24.0 cents per $100 for taxable personal property, which would leave the city with a shortage of $49,576 for the fiscal year budget.
After some discussion and questions by council members, councilmember Amy Craig said she could not support raising taxes at this time.
After the city clerk read the first reading of the ordinance with the proposed 4% tax levy, Councilman Phillip Brooks made a motion to amend the ordinance to leave the tax rates the same as last year.
Councilman Terry Parker agreed and added he cannot see raising taxes and creating a burden on households and businesses.
Council unanimously approved the amended ordinance on first reading to leave the real and personal property tax rates the same.
In other business, Martin presented the amended annual budget for the fiscal year 2020-21 which included the $2.23 million of CARES Act funding received from the state and how the money would be allocated with $1.5 million being set aside to cover future pension costs. However, councilman Travis Martin disagreed with how the remainder of the funding would be disbursed including using $60,000 to pave the parking lot at the Sportsplex.
Martin said he believes they need to take a longer look at how the money is being disbursed and made a motion to return the entire COVID-19 relief program back to the Committee of the Whole and create a committee to discuss the reallocation of the funds. His motion passed by a 9-3 vote with council members Patricia Waddell-Bell, Phillip Brooks, and Darvin Adams casting the nay votes.