City Commission Approves Recreation Center Funding

The Paducah City Commission approved several ordinances related to the development of an indoor recreation and aquatic facility at their meeting Tuesday night.

The first ordinance raises the city's insurance premium tax from 6% to 7%, effective July 1, 2020. The increase is expected to generate approximately $700,000 in annual revenue which will be used toward paying a portion of the general obligation bond approved by the second ordinance.

The second ordinance authorizes a general obligation bond in the amount of $22 million for the costs of constructing and equipping the facility.  The bond is structured so that the city only pays the interest until other debt obligations are paid off beginning in 2023.

Both ordinances passed by a three to one margin with Commissioner Richard Abraham voting no on each ordinance.

Mayor Brandi Harless spoke about the debt, saying, "There's a lot of debt that the city carries. That debt has come on the books at different times and will come off the books at different times. We're in the window of that debt getting paid off. The other part of how this debt is going to be paid for, this $22 million, is part of that debt being freed up. So this won't come out of the general fund; this will be funds that are getting freed up as debt is getting paid off from old projects. That is really responsible, in my opinion, and a creative opportunity that we uniquely have right now, as those long term debt obligations are now getting paid off. So I'm excited about that."

The commission also unanimously approved an ordinance authorizing the implementation of service fees associated with the use of credit or debit cards and echeck payment processing. Commissioner Sandra Wilson clarified that this is a fee on a new service, and that the customer can avoid the service fee by continuing to use other forms of payment.

On a separate note, the Paducah Board of Commissioners voted to table the second reading of the ordinance related to restricting dogs at special events.  Commissioner Gerald Watkins, who initiated the proposed amendment, was unable to be in attendance at the meeting.  The commissioners also expressed interest in continuing discussion on the topic with input from local veterinarians, the health department, the police department, and the parks and recreation department.