City Manager, Jim Arndt, Assistant City Manager, Michelle Smolen, and Finance Director, Jonathan Perkins, led the budget workshop. Arndt says the theme of the 2021 budget will be "Budget in Place", which refers to keeping the City's workforce, operations, and projects intact even after a decrease in revenue.
Due to the COVID-19 pandemic, Paducah's leaders are projecting a ten percent decrease in their major revenue sources, which will impact the City's main fund. The proposed budget is $35,888,465 which will be an $85,000 decrease from this year's original budget.
Commissioners proposed the following measures in an attempt to balance the budget:
1) A hiring freeze, and the freezing of merit increases for the fiscal year;
2) Use approximately $1.5 million from the unreserved General Fund cash balance in excess of the required 12 percent reserves;
3) Use $500,000 of reserves from the Debt Service Fund;
4) Use $790,375 from the Radio Fund to cover the City's portion of 911 operations.
Even with the expected revenue decreases from the pandemic, the City had the following positive news to share:
1) The proposed budget contains all annual debt requirements in the amount of $3,968,945.
2) The annual pension contributions are remaining flat for this fiscal year with rates provided by the State.
3) The proposed budget contains a 2.5 percent cost-of-living increase as contractually obligated for IAFF and FOP. The percentage will be for the non-represented employees as well. AFSCME will receive a contractually obligated 2 percent increase.
4) The proposed budget includes significant funding for current capital projects and some new purchases including adding $250,000 to start the televising and cleaning of the storm-water system, and $400,000 set aside for a project in association with FEMA for the dredging of the sediment near the transient boat dock.
5) The proposed budget includes the required 12 percent reserves for the General Fund.
6) The proposed budget includes funding for the Grant-in-Aid program.
7) The proposed budget projects no increase in property tax rates.
City officials say they have reviewed all of the projects in the City's Strategic Plan to insure alignment.
When reviewing the plan, Smolen says there are 37 action items. Even with the pandemic, 31 of the items are moving forward with little or no impact at all. A few of the action items are being moved to a future date, including the development of a comprehensive bike plan, public art in community gateways, and the hosting of a multicultural event.
The City Team will review the budget again after six months into the 2021 budget. The Budget Book will be uploaded to the City of Paducah's website in July. Anyone can view the current year's budget information by visiting the link below.
You can see the full meeting below.
On the Net:
City Budget
