The City of Henderson remains without a fiscal year 27 budget after the city council did not pass a budget at its special called meeting June 17. Mayor Pro Tem Tami Walker made a motion to pass the budget after Finance Director Joey Fuqua presented total adjustments that were being suggested of some $1.34 million. This comes after more than a week of consideration and talks with Interim City Manager Kendrick Vann and other departments, but the motion failed for lack of a second.
As the council continues to consider money-saving options before approving the FY 2026-27 operating budget, less than two weeks remain in the current fiscal year, and the FY27 budget needs to be adopted before July 1.
Another meeting will be scheduled and officially announced, and the council tentatively set that for Wednesday, June 24.
All eight members were present to hear Fuqua explain that he, his team and the various city departments had been able to find roughly $677,000 in additional savings while factoring in forecast sales tax revenues of $300,000 and “other incremental revenues” for a total of $1.34 million.
If it had been adopted or something similar is adopted, then that total reduces what the City will have to take from undesignated fund balance, and Fuqua said the total $3.6 million now needed from fund balance represents the lowest that figure has been in three years.
As it stands for now, it’s the Henderson Police Department and public safety overall that takes the biggest hit.
Approximately 63 percent of the “saved” or “found” money or about $450k comes in the form of two frozen police department sworn office positions and a retirement benefit calculation.
Another bit comes from a fire department position. And there are a few H-V Rec Department positions involved as well.
The City of Henderson experienced no homicides in January, February, March or April, but the Henderson Police Department has investigated and made multiple arrests in two homicides that occurred in the 45 days follwing May 1.
As mentioned, in addition to the two sworn officer positions being frozen, the finance department recalculated retired police personnel figures using a projected percentage rate more than seven points lower, giving back $300k to the budget.
Council Member Geraldine Champion inquired about changing some positions from full-time to part-time and also wondered whether the highest-paid city employees or any city employees could be required to pay for their own insurance.
Champion also said she was not including emergency personnel in her efforts to save this budget.
Council Member Michael Venable asked about one of the city positions, one that was being moved laterally from one department to another.
Vann said for the last few years, city employees received lifetime benefits upon retirement. Reversing this could lower morale among employees, Vann said.
In response to a question from Council Member Sam Seifert, Fuqua explained that, with reductions in place, use of fund balance and the bump in sales tax revenues, the gap between the revenues and expenses equates to two police positions, one fire position, three from the rec department, with one moving laterally into another department, and Fuqua mentioned the value of the police retirement projection percentage change.
Mayor Melissa Elliott said this trend is not sustainable, with Fuqua echoing previous comments about finding ways to add revenue.
Vann asked the council for additional direction, and he was provided none in open session.
Following the budget discussion, the Council went into closed session. When they returned to open session, Walker made a motion, seconded by Venable, to adjust the interim city manager’s pay up $7,500 to a total compensation of $150,000. The motion passed unanimously.
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