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Mayor proposes electric merger
Posted by: My KNE on March 20, 2007 at 1:55PM EST

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.

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