Firefighters warn of proposed cuts’ impact

By Chris Harris, New Era staff Writer

The Hopkinsville Fire Department’s ability to fight and prevent fires would be reduced if Mayor Dan Kemp’s proposal to cut the department’s budget is approved, Fire Chief Fagan Pace Jr. said Monday.  The cut would restructure the fire department employees and force them to run three-man trucks instead of the usual four-man operation, Pace said. Trucks from two stations would have to go to each call because of certain regulations.

The first group to arrive would have to wait to enter the building and fight an internal fire until a second truck arrived with more manpower. Occupational Safety and Health Administration requires two fire fighters remain outside the building while two are inside in case someone inside goes down.

“Obviously that’s four,” Pace said. “Three does not equal four.”

Kemp’s fire department proposal is part of his attempt to lower the city’s dependence on its reserve funds. By cutting a proposed 12 firefighters from the department, the city would save an estimated $600,000 a year in payroll and health benefits.

Cutting fire department staff has been proposed twice before during budget time and was rejected both times.

“In my opinion, we are already minimally staffed,” Pace said.

Hopkinsville has two firefighters per 1,000 people and those firefighters are all cross-trained to run ambulances as well. Paducah and Ashland have the same amount, but they do not operate the ambulance service.

Pace said the fire department’s services would decrease if staff was reduced. Community education programs, response time and the ambulance service would suffer.

Yellow Ambulance also serves Christian County. The company mainly services nursing homes and hospital to hospital transfers. The fire department is dispatched for most 911 calls.

By Chris Harris, New Era Staff Writer

Mayor Dan Kemp presented a $22.2 million budget for the city of Hopkinsville today which may include the merger of Hopkinsville Electric System and Pennyrile Rural Electric Cooperative Corporation.

The mayor appointed one committee to examine ways to decrease what the city spends in personnel costs and another to assess debt repayment.

Kemp hopes the savings will prevent the city from using its entire reserve fund by the end of the next fiscal year.

The mayor’s two committees will look at reducing the fire department’s staff to decrease payroll and the potential buyout of HES by PRECC.

The price for HES looks to be “a substantial amount in excess of $10 million,” according to the mayor. The city owes $8.6 million and the sale of HES could take pressure off the city’s budget by providing the $1 million-a-year payment.

Sale proposal faces several hurdles

By Jennifer P. Brown, NEW ERA DEPUTY EDITOR

Several things have to happen before the Hopkinsville Electric System can be sold to generate millions of dollars in revenue for city government.

The proposal to sell HES to Pennyrile Rural Electric Cooperative Corp. — unveiled Friday in a surprise announcement by Mayor Dan Kemp — would require the approval of the HES board and Hopkinsville City Council. Assuming it passes those two hurdles, it then would go to Hopkinsville voters in a referendum on the November general election ballot.

First, though, someone has to decide how much HES is worth.

Kemp said the utility’s value is substantial — in excess of $10 million.

HES General Manager Austin Carroll said Friday night that the physical plant alone is worth $22 million. The replacement cost would be greater. Other factors, including the utility’s income potential, will influence the total value.

“I think you are looking in the range of $30 million,” Carroll said.

Eston Glover, president and chief executive officer of Pennyrile Rural Electric, said Pennyrile has hired GDS Associates Inc., a Marietta, Ga., firm, to evaluate the deal and help appraise the value of HES.

He said the firm will have an appraised value by May 1, which is the deadline Kemp has given a committee he appointed Friday to study the sale of HES.

Glover said he supports the purchase of HES if it benefits customers and employees of the two utilities, and if it benefits Hopkinsville taxpayers.

“I think it is something that could be real positive for Hopkinsville,” he said.

Carroll said he’s open to studying the idea but raised several questions.

“I think we should do what’s best for the community,” he said. “We should do what’s best for the customers. Right now, I think the customers have got a good deal and they need to hold on to that deal. It’s hard to see how this is going to be best for the customers of Hopkinsville Electric and Pennyrile Electric.”

Pennyrile’s rates are higher than the rates charged by HES — 14 percent by the mayor’s count or about 18 percent by Carroll’s estimate.

Kemp that if HES is sold, those customers would keep their lower rates after switching to Pennyrile. The rate would not revert to the higher Pennyrile rate until a customer moves.

Pennyrile would likely borrow the HES purchase price from Rural Utility Service and would pay off the debt from revenue generated from the added customers, said Glover.