Commission Approves $19.8 Million Budget With $2 Million Shortfall
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Robert Moore
Herald Staff
[email protected]
The Harrodsburg City Commission has approved its budget for the new fiscal year, which begins July 1.
At their regular meeting on Monday, June 22, the commissioners gave second reading to the city’s $19.8 million dollar budget for the 2027 fiscal year, with Mayor Bob Williams voting against it. City officials say the total budget is $19,862,917.18 with a total shortfall of $2,148,107.37, including shortfalls of $1,476,663.76 in water and sewer and $671,443.61 in the general fund.
Chief Administrative Officer Stacey Maynard previously attributed the budget shortfall to maintenance on Harrodsburg’s aging infrastructure, an issue that became national news last month, when the city asked residents to stop all non-essential water use after discovering a line break in the 12-inch line that pumps raw water from the Kentucky River to the city’s water treatment plant.
It was the second time in two years that the city had been forced to ask citizens to reduce their water consumption. Back in April 2025, flood levels reached within one and a half feet of the City of Harrodsburg’s raw water station on the Kentucky River, leading to the closure of both schools as well as a run on bottled water at local stores and emergency shipments of water being distributed to the public at the fairgrounds.
The new budget adds only one new position, at the wastewater treatment plant in anticipation of a plant upgrade, as well as a three percent raise for all city employees.
At Monday’s meeting, the commission gave the budget a second reading, with only Mayor Bob Williams voting against it.
Williams asked Maynard to give comment on the budget.
“Nothing has changed,” Maynard said. “I can’t do changes without recommendations.”
Commissioner Marvin “Bubby” Isham moved to approve the budget, with Commissioner Jack Coleman seconding. The budget passed four to one. There was no further discussion of the budget, which City Attorney Norrie Curren previously called “unconstitutional.”
Toward the end of Monday’s meeting, the commission authorized Mayor Williams to sign an agreement with Raftelis to perform a rate study, which Maynard called essential for Harrodsburg’s long-term financial security. Maynard said she hoped the rate study would lead to “charges that are equitable and resilient to outside pressure.”
Once the agreement is signed, Maynard said there would be a three-to four-month turnaround time. She previously told the commissioners the city’s water rate had not changed from 2012 until 2019, when the commission initiated increases based on the consumer price index. Maynard said that in her research, she had found that in one year, a new rate had been adopted but was not implemented. She said employee raises have not been covered by rate increases.
“Our expenses have outpaced our revenue,” Maynard said. She said it happened in 2025 and 2023, but not in 2024, because of loans and grants.
“It’s not a new problem,” Maynard said.
After Monday’s meeting, she said she hopes to “be able to adopt a rate that will maintain our current level of service while allowing us to perform the capital upgrades we need to do.”
