Wendell Honeycutt, the chairperson of the Glasgow City Council’s finance committee, listens during a meeting of the strategic planning committee on Monday, Jan. 6, 2020.
GLASGOW, Ky. – The finance committee of the Glasgow City Council is hosting two town hall meetings at Lera B. Mitchell Clubhouse this week regarding a potential payroll tax increase.
The finance committee spent much of the last two months discussing significant shortfalls in the city’s budget. Several hits have occurred recently, including deficits from the coronavirus pandemic, payroll tax reductions due to the loss of major industry and the expected increase in pension contributions.
“To me the primary driving factor is the cost of the pension plans,” said Wendell Honeycutt, chairperson of the finance committee. “In the next five years that is going to be $3,750,000 more than what it is currently. That’s how much more we’ll have to spend over the next five years on the pension just based on the stated increase that the state has given us.”
The city’s pension contribution rate is expected to increase by 12% every year.
“There’s nothing we can do about it,” Honeycutt said. “We could fire everyone in the city. We still have to pay that.”
The other shortfalls resulted from the loss of Sitel and LSC Communications, which were two large contributors of Glasgow’s occupational tax collections. Occupational tax collections funded 69% of the budget in the fiscal year 2019-20.
The finance committee moved forward July 1 with an approved rate increase. However, the entire council must vote on the rate before it is implemented.
The new rate is 1.75%, which is .25% more than the current 1.50%.
Given that the council votes to adopt the new rate at its Aug. 10 meeting, members of the finance committee estimate the rate to be instated on Jan. 1, 2021.
Two town hall meetings are scheduled on Monday and Thursday, Aug. 6. The meetings will be held at Lera B. Mitchell Clubhouse at 6 p.m. each day.
“These meetings are designed to hopefully let us know how the citizens feel,” Honeycutt said. “Glasgow, honestly, is at a crossroads.”
Those attending are expected to wear a mask and will have their temperature checked upon entering the facility.
Lera B. Mitchell Clubhouse is located at 1214 S. Green St. in Glasgow.
