By Stu Johnson
Lexington, KY – Mayors across Kentucky are building budgets designed to cope with the slow economy. The critical issues can vary depending on the size of the community.
Usually, Robin Cooper, who's with the Kentucky League of Cities, says small communities are not burdened by overstretched pension funds or by collective bargaining agreements with city workers. Still small town mayors feel the pinch. Relative to their size, Cooper says, if cutbacks occur, they can go very deep.
"Usually you have a smaller employment base so layoffs are not as easy," said Cooper.
Besides layoffs, some cities are seeking additional revenue. For example, Kentucky League of Cities director Jon Steiner says city leaders may look at creating new fees and increasing older ones.
"I think it's looked at more as a user fee. Those who are using the service will pay for the services. That's usually how it's described. I've seen that with a paper bag for trash program with recreational programs. Things of that nature," added Steiner.
In Lexington, the mayor is suggesting a new fee for emergency medical service. By tapping into out-of-town visitors, Cooper adds a sales tax or restaurant tax could enable city leaders to lower other local taxes. However, such a change would require permission from the Kentucky General Assembly. And, the state legislature has been reluctant to grant such an option to cities.