Harrodsburg City Commission Gives First Reading To ‘Unconstitutional’ 2027 Budget
File image.
Robert Moore
Herald Staff
[email protected]
The Harrodsburg City Commission has given first reading to a budget the city attorney called unconstitutional.
At their regular meeting on Monday, June 8, the commissioners gave first reading to the city’s $19.8 million budget for the 2027 fiscal year. City officials say the budget has a total shortfall of $2 million, with a $1.4 million shortfall on water and sewer and another $671,000 shortfall on the general fund.
Chief Administrative Officer Stacey Maynard attributed the budget shortfall to maintenance on Harrodsburg’s aging infrastructure, an issue that has come under increasing scrutiny recently.
Maynard said the proposed budget added 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.
She 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 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 did not happen in 2024 because of loans and grants.
“It’s not a new problem,” Maynard said. She said the city will look at rate studies. Maynard said she hopes to present options at their next meeting.
“We’re going to have to raise the water rate,” Maynard said. She said they also have to look at tap fees so they can break even.
At a budget workshop on Friday, June 5, Maynard said the city was losing money on the fee the Kentucky River Authority was charging them to pull water from the river.
In addition to maintenance costs, the city has been hit with a 49 percent increase for employees’ health insurance. At a budget workshop on Friday, June 5, Maynard said the staff had managed to get that to a 25 percent increase by offering the same plan with higher co-pays. Employees can “buy down” with a cheaper family option or “buy up” to the current plan.
The city is also dealing with higher costs across the board, including fuel costs for city vehicles, costs for chemicals used by the water and wastewater treatment plants and higher postal rates.
Under law, the city must have a budget in place by July 1, the beginning of the 2027 fiscal year. There are also statutory and constitutional requirements to have a balanced budget.
“Passing this ordinance is unconstitutional,” said City Attorney Norrie Currens at Monday’s meeting.
Maynard said she will bring a proposal for a rate study at the next city commission meeting. She said she’s created scenarios for rate increases that would allow the city to break even.
“We would need to do a pretty quick budget amendment to get back in compliance,” Currens said.
